The guidance is a disappointment. They're apparently not expecting revenue growth really to pick up.

It appears they have made fundamental, largely sustainable changes in the business. The guidance they offered today was above expectations, and we're seeing fundamental improvement in margins in this business pretty quickly under this new CEO. Margins in both the PC and imaging and printing businesses, which each account for 30 percent of revenue, were better than expected.

This is not a company that's on the ropes, but I think it's struggling to maintain the growth targets it has set for itself.

We have been citing improving execution as a key driver of earnings growth while conventional wisdom and headlines have credited cost cutting. Based on yesterday's results and questions on yesterday's conference call, we think investors are finally realizing that cost cutting is only part of the story.

The slight earnings disappointment is compensated by the positive outlook on dividends, where management guidance is moving towards our more aggressive dividend payment assumptions.

We think the growth guidance we've given you for 2001 is sustainable for the long period given the breadth and depth of our portfolio, ... We have shown where the growth is coming from in terms of our product line, geography and our customers. We think we've made great progress in accelerating production of IT and patent generation equipment and that will bode well for us in 2001.