Dell reaffirms guidance for strong Q1 revenue and earnings growth

Enterprise, Mobile Computing remain focus for reaching $80-Billion revenue goal

Dell executives reiterate expectations for fiscal first-quarter 2006 revenue and earnings per share, as well as the company's plans to grow from $49 billion to $80 billion in annual sales.

Dell reaffirm guidance initially provided Feb. 10 that it expects first-quarter revenue of about $13.4 billion, up 16 percent from the prior year, and earnings per share of 37 cents, up 32 percent. The company will also say it now intends to spend $2 billion to repurchase stock during the current quarter, more than double Dell's original expectation.  Over the past four years, stock buyback has reduced weighted average shares outstanding by more than 9 percent.

Kevin Rollins, Dell's chief executive officer, discussed the company's recently increased revenue goal of $80 billion, including how the company expects to reach that level within three to four years.

"Our growth and profitability are based on a disciplined approach to defining new product and service categories, accelerating growth in existing businesses, and extending the value we create for customers in all of those areas," Mr. Rollins said today.

Dell's growth plans emphasize four technology areas: network servers, storage systems, printing and imaging, and mobile computing, as well as the enhanced services that help customers get the most from those products.

In those product and service areas, as well as regions outside the United States, Dell expects to continue to grow at rates even faster than its strong overall average.

Company executives tell analysts that they expect earnings per share and cash flow from operations to continue to outgrow sales en route to Dell's $80-billion revenue goal.