Dell Inc on Wednesday forecast its revenue for the 2011 fiscal year to grow 14 percent to 19 percent from the previous year as more customers buy new computers after holding back during the economic downturn.

The outlook, announced ahead of Dell's annual meeting with analysts on Thursday, confirmed a long-awaited recovery in technology spending although it was in line with analysts' expectations and the shares were unchanged after-hours.

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, Dell Chief Financial Officer Brian Gladden said in a statement.

The outlook compared to the average analyst forecast for revenue to rise around 16 percent to $61.55 billion, according to Thomson Reuters I/B/E/S.

The computer maker also forecast its full-year operating income, excluding special items, would increase by 18 percent to 23 percent from a year earlier.

Dell's fiscal first quarter results, announced in May, showed strong gains in both profit and sales, although weaker-than-expected margins raised questions about the company's ability to boost profitability.

One key challenge for Dell has been in shifting to higher-margin businesses. Many analysts compare Dell's business model, which is heavily dependent on selling personal computers to U.S. businesses, to the more diverse strategies of Hewlett-Packard Co and International Business Machines Corp .

Dell shares were unchanged in after-hours trading after closing up 0.13 percent at $13.82.

(Reporting by Ritsuko Ando, editing by Bernard Orr)

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