President's Letter
Despite uncertain economic conditions, 1982 was a good year for Keane. The Company continued to maintain a strong position in the marketplace. Revenues for the year were $17,605,494 as compared to $16,397,533 during 1981. Net income was $305,331 or 36€ per share, versus $533,461 or 63¢ per share a year ago. The decline in profits was due to a weak economy and to investments Keane is making in its professional staff and the KeaMed product line.
Keane has a blueprint for its future. During 1982, Keane devoted consider-able resources to programs and organizational changes aimed at increasing market penetration by meeting client needs. Keane upgraded the skills of its field managers and technical staff, broadened and improved its hospital software and built a stronger infrastructure to support its branch organization.
The year 1982 was a healthy one for our Information Services Division. ISD is continuing to build a staff of seasoned marketing professionals who under-stand and respond to client needs. In addition, ISD started early in the year to focus on targeted accounts. The success of this effort is reflected in the fact that the Division signed a majority of the projects it went after during 1982. We are refining our sales approach and expect ISD's market share to in-crease during the next several years.
ISD is expanding its efforts to repro-duce technical excellence. Throughout the year, we put greater emphasis on project audits, productivity tools and the consistent application of Keane's Productivity Management techniques.
In addition, we are developing a technÃcal skills certification program. This program will be an important factor in our ability to identify, measure, train and manage technical personnel to high standards of performance.
The move for a larger share of a changing market is resulting in our ISD Division's offering software packages as well as custom computer services. We have recently purchased marketing rights for a proven manufacturing and financial package for small manufacturing companies. ISD is also opening a Product Development Center in Lexington, Massachusetts, early in 1983.
The Professional Services Group, ISD's premier technical consultants, continued to bring new business to the Company and to support branch personnel with technical expertise in specific industries.
In terms of revenues and profitability, 1982 was KeaMed Hospital System's best year. Over the past seven years, KeaMed has expanded its hospital expertise and has developed the best hospital software in the marketplace. We improved and added to this product line during the year so that the Division now offers a complete line of hospital software.
Until now, KeaMed has packaged its services under Facilities Management agreements by which we provide computer equipment and software along with the people to run them. We will continue to provide facilities management for clients who desire this option. During 1982, however, KeaMed took steps to "unbundle" its computer soft-ware. This enables us to sell or lease computer systems to hospitals who may not be interested in facilities management arrangements. It also enables KeaMed to market its systems through computer hardware manufacturers who need hospital software to make their computers productive. During 1982, we started to establish such relationships with leading hardware vendors. In short, I believe 1983 will be a most significant year for KeaMed.
Because people are critical to the growth and success of Keane, the Company is making a substantial investment in the development of our human assets. Last year, we formed a Human Resources Department. This year, we added a Director of Training and opened Centers for Professional Development in Boston and Philadelphia. Fifty-three of Keane's field managers have spent over 5000 hours attending Keane's unique management skills training programs during the year, and the Company has made significant efforts in sales and technical training.
In addition, all new employees now attend the Company's orientation pro-gram. In 1983, the Center for Professional Development in Boston will be expanded, and another center will be opened in New York.
The year 1983 will be an important building period for Keane. The Com-pany is approaching the marketplace aggressively with upgraded technical skills, strong, seasoned managers and new products and services to meet the needs of today's business community. I am proud of Keane's accomplishments in 1982 and am looking forward to a successful new year. I have never been more confident in our management team and our prospects for the future.
John F. Keane
President
Annual Report