These relatively small acquisitions are in line with (HP's) recent printer-oriented purchase of Scitex Vision, which expanded (HP's) technology and product set but did not change the company's focus. |
They are positioning themselves as the company that will connect video content to the end users and control your living room, |
They exceeded what they guided to pretty significantly. |
They will be facing head winds of (component) pricing going up, but they've done a good job of managing margins last several quarters. |
They're benefiting from the installed base (of printer owners). If they want to grow …, they're going to have to expand that installed base. |
Third-quarter total equipment revenue was very strong, |
This is a good move for the company. I would say there will be a boost to employee morale, because internally people had become frustrated, certainly within the printing division. |
We believe digital health imaging margins will remain under pressure as doctors shift from printing X-rays to viewing on screen. |
Whether or not they do it is still in question. |
While we cannot be certain, we continue to believe it is highly unlikely that HP would acquire Kodak, especially given HP's current focus on fixing its own business. The areas that Kodak gains profits from -- film, X-ray film, entertainment film, laser imagers -- are in secular decline. |