Dell sees better growth rates ahead amid PC upgrade cycle
Dell said that it expects fiscal 2011 growth of 14 percent to 19 percent over 2010 as a corporate PC upgrade cycle gets underway.
The company made the comments in a statement ahead of its analyst meeting on Thursday. Dell also added that its operating income, on a non-GAAP basis, will be up 18 percent to 23 percent in fiscal 2011 relative to 2010.
Dell is expected to deliver earnings of $1.26 a share on revenue of $61.5 billion for the fiscal year ending Jan. 30. Analysts had been projecting fiscal 2011 growth of about 16 percent.
According to Dell, an upgrade cycle will also drive servers, storage and networking products as well as PCs.
Dell CFO Brian Gladden said in a statement:
"An overdue client refresh among commercial and public customers is underway and we anticipate it will continue, and we will benefit from a strong cycle."
That has been a common refrain from Dell executives of late. After weathering the downturn, Dell is seeing better prospects. Dell is also positioning itself as a provider of "open, integrated best-of-breed solutions" relative to competitors like HP that are selling a complete IT stack.
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