Dell way down this year

Dell, a company that makes computers, is down 63 percent from $784 million last year, leaving them at $290 million in net income. Total revenue fell $12.34 billion.

Mr. Dell himself isn’t very worried – he expects a replacement cycle to hit with the launch of Windows 7. Market share fell 34 percent in desktop sales and 20 percent in notebook sales, leaving plenty of room for growth, I guess.

Analysts contend that Dell’s options may dwindle if the company fails to act soon. Oracle, for example, has snatched up Dell’s long-time rival Sun Microsystems, and Hewlett-Packard bought the services giant Electronic Data Systems last year.

“Their targets are limited,” said Ashok Kumar, an analyst with Collins Stewart. “Eventually, Dell will have to step up their services profile, and the candidates are few and far between.” Dell had $9.7 billion in cash at the end of its first quarter.

So who would buy Dell? HP? A South American potentate?