Dell Inks OEM Deal with SoloHealth

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Dell Inc. (DELL) recently clinched an original equipment manufacturer (:OEM) deal with healthcare kiosks provider SoloHealth Inc. The financial details of the deal have not been disclosed.

Atlanta-based SoloHealth specializes in providing interactive healthcare kiosks that help people to know their general health condition, free of cost. The kiosks record an individual’s health, gathering information such as blood pressure level, eyesight, weight, body mass index and so on. The database can then be used to consult a physician, enabling fast detection and prevention of disease. Being a start-up, the company has already attracted strategic investments from Coinstar Inc. (CSTR) and WellPoint Inc. (WLP) to roll out a number of kiosks nationwide.

Under the terms of the agreement, Dell will manufacture high performance kiosks for SoloHealth. Those kiosks will be deployed at various important retail locations. Notably, SoloHealth has already clinched a deal with Wal-Mart Stores Inc. (WMT).

Dell has been an experienced provider of OEM solutions to more than 2,100 customers, 40 different industry verticals including 30% of Fortune 100 companies. For the healthcare market, Dell’s solutions help to avoid overinvestment; save time and money in product development, reduce downtime and achieve longer product life-cycles. Dell’s technological expertise will help SoloHealth grow its market share through efficient kiosk performance.

We are encouraged by Dell’s deal winning momentum from various industry verticals. But the lackluster PC market, which is continually affecting the fundamentals, keeps us concerned. In its recently concluded second quarter results, Dell posted year-over-year decline in revenue and earnings per share.

A gloomy third quarter outlook, uncertainty regarding the acquisition of software vendor Quest Software and concerns regarding the PC market share loss to Hewlett-Packard Company (HPQ), Apple Inc. (AAPL) and other Asian manufacturers have led to our bearish view for the short term.

Currently, Dell has a Zacks #4 Rank, which implies a short-term Sell rating.

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