Dell Inc said on Thursday the company is squarely focused on improving profitability, even as it grapples with rising component costs and volatility in international markets.

The company said it is well-positioned to reap the benefits of a strong refresh cycle among commercial customers as they replace aging personal computers and servers.

We're on a growth strategy, Chief Executive Michael Dell said during the company's analyst meeting.

Last year was a challenging one for the global economy ... but this year we see the growth really coming back.

Dell on Wednesday forecast a 14 percent to 19 percent rise in fiscal 2011 revenue, with non-GAAP operating income up 18 percent to 23 percent. It was the first time the company had provided a formal outlook since 2006.

Investors remain focused on Dell's profitability, particularly in its consumer business, which has been a drag on the overall company.

Chief Financial Officer Brian Gladden said that while average selling prices are improving, there are signs of weakening demand from consumers in Europe, and component pricing and foreign currency volatility continue to be challenging.

PC sales still make up more than half of Dell's sales, with the company particularly reliant on sales to U.S. businesses. Dell is aiming to diversify into higher-margin businesses such as IT services.

Dell's turnaround effort has proceeded in fits and starts, and has been hampered at times by poor execution, analysts say.

Shares of Round Rock, Texas-based Dell fell 4 percent to $13.24 in morning trading on the Nasdaq.

(Reporting by Gabriel Madway, editing by Maureen Bavdek)