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.

H-P is probably quite worried, not just about PCs and servers but what Dell will do in printers, particularly in cartridges.

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.