We believe . . . that tightening links with customers by moving these functions into business units is a necessary step,

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.

Because of our convention business, it is not a huge big difference [in regular and summer employment].

It sounds like the fallout for EDS might not be as pronounced as some people had expected.

We think Hewlett-Packard will finally get credit for improving execution, possibly putting to rest concerns (H-P) is a cost-cutting story that is fully reflected in the stock. We think investors are finally realizing that cost cutting is only part of the story.

We do not look favorably upon this tactic as we think it reduces quality of earnings and reduces management accountability and transparency.