Happy days are back for Dell

Computer maker Dell Inc. finally had some good news for investors, when it unveiled forecast-beating results. The results were declared after a six-day delay amid an ongoing federal investigation of the company's accounting and financial reporting.

Dell has had a tumultuous time in recent months. Not only was it hit by Sony's laptop batteries recall, but it has also been overtaken by Hewlett Packard as the world's biggest computer-maker. Dell’s cup of sorrow may just be full now with good news pouring in and shares jumping 8.9 percent subsequently.

The group said that net income was $677 million, or 30 cents a share, which exceeded a 24 cent estimate by J.P. Morgan Securities analyst Bill Shope. Profit Sales in the quarter ended November 3 were $14.4 billion.

The results have to be taken with a pinch of salt as Dell’s accounting is under investigation by regulators. The investigations indicate possible errors related to so- called accruals and reserves, estimates of future obligations reported in previous financial statements.

In a marked departure from normal practice, Dell did not provide year ago results in its report. Moreover, the company didn't offer the usual post-earnings conference calls, where reporters and analysts could directly question founder Michael Dell and Chief Executive Officer Kevin Rollins.

The company claimed that the results were filed six days later than expected because of the “level of complexity the company is facing in the preparation of its preliminary results.'' The company however denied that the delay was related to the investigations.

Dell attributed the increase in revenue to improved customer services, rising sales and strong growth in Asia and Europe.

Dell is currently spending $150m on improving customer service - such as taking on more call service staff - in a bid to resolve problems that it admits left its clients in "Dell Hell".

To cater to the needs of the customers, Dell has added call representatives in the U.S. to bolster support and cut down on customers' telephone wait times. Service representatives are now resolving more problems the first time a customer calls.

Shaw Wu, an analyst with American Technology Research in San Francisco said, “The company's making progress.'' The company said it will continue to invest in customer service, new products and expansion.