Gabriel Lowy
Gabriel Lowy
pcs quite
H-P is probably quite worried, not just about PCs and servers but what Dell will do in printers, particularly in cartridges.
companies company difficult expect funding history large next pick private proven public since time work
I expect more companies to pick off private players, start-ups that don't have the funding to make it to next level. You're not going to see large public company transactions anymore. History has proven that they don't work since they are too difficult and time consuming.
achieve benefits best case environment gross growth margin point returns revenue stretch type view volume
In our view it's going to be a real stretch for them to achieve that type of gross margin in a revenue environment we think is at best in a muted recovery. Right now, they are getting the flow-through benefits of restructuring and cost-cutting, but at some point it's going to be a case of diminishing returns without volume growth which turns into revenue.
aligned business continuing cost focus growth imagine number round structure
The first focus is going to be continuing the growth of the business ... focus number two is getting the cost structure aligned with the new demand. I imagine we're going to see another round of downsizing ... I think it's going to be significant.