AUSTIN (Texas): Dell Inc plans to keep making acquisitions and expects to hold on to recent gains in profit margins, as it expands into areas such as storage and computer services.
CEO Michael Dell said on Wednesday the computer maker will focus on "midmarket opportunities", including small and medium businesses in the public sector and the healthcare industry as the company looks for long-term revenue growth of about 7 per cent.
Addressing a key investor concern, executives at an annual analyst conference said they expect to sustain recent improvements in gross margins and continue to see strength in corporate information technology upgrades.
Shares in the company, once the world's top maker of computers, closed up 2.6 per cent at US$16.42 (RM49.59).
The company, which is diversifying its revenue base in the face of weakened consumer demand, has enjoyed renewed favour from investors after quarterly results rose and it raised its 2012 outlook in May on strong corporate sales and improved profitability.
Dell, which did not update its forecasts for fiscal 2012 at the conference in Austin, Texas, has been trying to move into fast-growing tablet and smartphone markets and such businesses as data centre equipment.
Storage and service remain a key area of growth for the company. Dell expects revenue from storage to grow 15 per cent to 20 per cent a year on average in the next four years, and revenue from services to expand an average 7 per cent to 9 per cent a year over the same period.
Dell is looking to expand its services business in Europe and Latin America, executives said. - Reuters
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