Dell predicts a revenue jump of 14 to 19 percent in fiscal 2011, anticipating increased consumer and corporate spending. This aligns with analysts’ expectations, while investors focused on the company’s ability to maintain profit margins, reports the NY Times.
At Dell’s annual financial analysts conference, the main topic of discussion was whether the computer company can sustain profitability after gross profit margins fell short in the first fiscal quarter. Dell, which is slowly ceding market share to Hewlett-Packard and Acer, is also facing challenges with rising component costs, such as memory. Dell forecasts a revenue increase of 14 to 19 percent in the 2011 fiscal year as more users purchase new computers following belt-tightening during the recession. Their predictions confirm the long-awaited rise in spending in the technology sector. Michael S. Dell, CEO of Dell, stated that the company, which has not issued official financial forecasts since 2006, is now able to predict future business. This year has brought more stability to the business world, said Dell, the man who founded the company in 1984. Dell’s forecasts align with the average analyst predictions that revenues will rise by about 16 percent, to $61.55 billion, writes Thomson Reuters. The computer manufacturer also predicted that earnings from regular business activities will increase by 18 to 23 percent compared to the previous year. (Z. S.)
