Dell (NASDAQ:DELL) declared its first ever quarterly cash dividend of 8 cents per share. The dividend, along with the ongoing share repurchase program is intended to help contribute to long term shareholder value. It is payable on October 22 to shareholders of record as of the close of business on October 1. [1] The Round Rock, Texas-based company also announced that it signed a deal to become the original equipment manufacturer for SoloHealth Inc. to provide healthcare kiosks. The financial details of the deal was not disclosed. [2]
Dell has guided that for Q3, it expects revenue to be down 2%-5% from Q2 levels as it lost more market share to players like HP and Lenovo. It is also modifying its earnings outlook for the year to at least $1.70 per share on a non-GAAP basis, due to impact from its pending acquisition of Quest Software.
OEM Deals May Reduce Hardware Revenue Decline
Dell’s OEM solutions cater to around 2,100 customers in 40 industry verticals and Dell’s expertise in the OEM segment is likely to help SoloHealth grow its kiosk business without the need to develop its own technology infrastructure. SoloHealth is in the business of providing interactive healthcare kiosks, to check and report users general health condition. It does so by gathering information of the user such as blood pressure, height, weight, body mass index, eyesight and so on. Dell manufactured high performance kiosks are then deployed at various retail locations. The company has already signed an agreement with Wal-Mart Stores Inc (NYSE: WMT) to allow it to deploy kiosks at its stores. SoloHealth then uses the information gathered to help users consult a physician, enable fast detection and prevention of diseases.
We have a $19.22 Trefis price estimate for Dell, which is significantly higher than the current market price.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes:- Dell Declares First Ever Dividend, www.nasdaq.com, Sept 6 2012 [↩]
- Dell Inks OEM Deal with SoloHealth, www.nasdaq.com, Aug 2012 [↩]
