Dell Cutbacks Pay Off

Dell said it benefited from lower component costs and higher prices for its products and services during the three months ended May 4. The company's operating margin was 6.5%, vs. 6.7% at this time last year.

Dell offered only a limited financial report and will not host the customary post-earnings conference call due to an ongoing investigation into its past accounting practices.

The company said it has not yet determined whether it will need to restate past financial reports as a result of the accounting errors, which have triggered investigations by the Securities and Exchange Commission and the U.S. Department of Justice.

Dell said its own internal investigation into the accounting issues was moving toward a conclusion, but didn't say when it anticipated wrapping the matter up.

The PC maker has been in fix-it mode since found Michael Dell returned to the CEO job earlier this year, sparking hope among investors that a comeback was in the making.

Dell has rebuilt its senior leadership team in recent months and made a few changes to its business model, most notably partnering with Wal-Mart(WMT Quote) to sell a couple of desktop PC models beginning in June. Until now, Dell has shunned retail stores in favor of selling its PCs directly through Internet and phone orders.

A changing PC market and fierce competition from Hewlett-Packard(HPQ Quote) -- which recently displaced Dell to become the world's No.1 PC company -- have caused Dell to rethink its business model.