Dell on Target to Meet Growth Goals, Officials Say

The company's CEO attributes the growth to carefully selecting new product and service areas and ramping up existing businesses.

AUSTIN, Texas—Officials with Dell Inc. expect the companys strong growth to continue for the foreseeable future.

First-quarter revenues are on target to come in at about $13.4 billion, and the computer maker expects to reach its goal of $80 billion in annual sales within the next two or three years, officials said here at a meeting with analysts and reporters.

CEO Kevin Rollins will reiterate these points Thursday during the Round Rock, Texas, companys annual analyst meeting.

In a prepared statement released Wednesday, Rollins attributed Dells growth to carefully selecting new product and service areas for the company and ramping up existing businesses.

Dell officials said that during the meeting Thursday, Rollins will talk about four areas that the company expects will continue to grow quickly: servers, storage, mobile computing and printing.

Growth in regions beyond the United States also will be a factor, they said.

During the series of meetings with analysts and reporters, Dell officials focused on the printing and services businesses as examples of their companys deliberate strategy for moving into high-growth opportunities and adding revenue streams that arent tied directly to selling boxes.

/zimages/6/28571.gifRead more here about Dells new products for business users.

After years of selling third-party printers, Dell sold its first branded printer in April 2003.

Since then, it has sold more than 7 billion printers, has a portfolio of more than 22 products and has expanded into more than 23 countries, said Ro Perra, senior vice president of Dells Americas unit.

Dell has given particular attention to the inkjet all-in-one and color laser jet businesses, growing to 16 percent and 10 percent market share, respectively, Perra said.

Associated products that offer recurring revenue—in particular, ink and toner cartridges—represent about 32 percent of the revenue in Dells printer business.

Next Page: The push in the printer business.