Dell Predicts Growth in Revenue for Fiscal 2011

Dell (News - Alert) said it expects revenue growth for the remainder of the year - fueled by the replacement of older computers among businesses and governmental organizations.

Dell said it expects revenue for Fiscal 2011 will increase 14 to 19 percent over Fiscal 2010. Dell also said it expects that operating income will increase by 18 to 23 percent over Fiscal 2010 and cash flow from operations will be greater than net income for the current year.

The outlook was provided ahead of Dell's annual meeting for securities analysts, scheduled for Thursday.

"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," Brian Gladden, Dell chief financial officer, said. "The client refresh and the revenue it drives, along with our focus on selling more servers, storage, networking products and services through expanded enterprise offerings, are expected to increase our operating income and drive strong cash flow."

In addition to the outlook, analysts were to be briefed on progress in the company's business strategies, such as Dell's expansion of its enterprise solutions through the development and acquisition of intellectual property and sales capabilities.

Michael Dell, chairman and CEO, was to have described current challenges faced by Dell customers, especially CIOs, who are looking for solutions to support changing infrastructure and application management needs, as the demands of global users for instant, secure access to data and content continues to grow, the company said.

"Dell is uniquely positioned to provide open, integrated best-of-breed solutions," Michael Dell said. "We continue to stay focused on listening to our customers and delivering products, services and solutions that will fulfill their needs today, and tomorrow. With improvement in the global economy and increased IT spending in commercial and public segments, we have confidence in our ability deliver solid operating income, cash flow and returns to our shareholders."

Dell announced earlier this month that it is talking with the Securities and Exchange Commission in an apparent effort to settle allegations that relate to how the company and CEO Michael Dell dealt with Intel (News - Alert).

Dell also announced recently it has revised its first quarter results by adding $100 million for a potential settlement related to the SEC (News - Alert) investigation and other accounting issues.

In other company news, Dell plans to release the Streak, a five-inch Android (News - Alert) -based tablet, this June in Europe, with release later this summer, across the United States.

With its five-inch screen and other features the Streak is smaller than many other tablets but still has many popular features.