Looking forward, Curling says, he thinks Rackable is following a dual strategy “whereby attempts to bring Dell back to the table are executed concurrently with a major realignment of internal processes.”
Curling says his estimates for Rackable “remain significantly below Street consensus, as we assume higher operating expenses while remaining cautious on near-term revenue visibility.”
Rumors of a Dell bid for Rackable resurfaced recently, including a story last week in the FT.
Rackable Wednesday is down 7 cents at $12.01; Dell is down 15 cents at $26.23.
DELL vs. RACK 1-yr chart: