On Thursday, Dell (NASDAQ: DELL) announced third-quarter earnings ending Oct. 31, that beat market expectations. The company stated that profits grew by 9% in the period to 37 cents per share. Analysts were expecting earnings of 31 cents per share.

The negative side of the release came in the form of revenues that missed expectations by $1 billion. That is a big miss and reflects a weakening sales environment that had only begun two months after the start of the quarter.

Exceeding estimates in earnings was a result of cost cutting and stock buybacks that reduced the number of shares outstanding during the period. The company is to be commended in managing its business in a slowing economy.

The question going forward is can they continue that performance. Expenses can only be cut so far. It's clear that sales will be declining in the current quarter given that the world economy seemingly hit a brick wall in October.

The expectation is that the weakness has only just begun. Investors initially greeted the news from Dell positively, sending shares higher in the after-hours market, but that enthusiasm waned as investors worried that things could indeed get much worse.

Dell finished Friday down more than 5% to close at $9.30 per share. Not even a late-day short-covering surge could help change the sentiment for Dell.

The good news for Dell is that it is profitable. The downturn, though painful, will eventually end with the economy recovering at some point. To the extent Dell becomes a lean, mean fighting machine, investors today will be rewarded.

Yes the stock can and most likely will go lower from here.

That said, we are closer to a bottom than a top. I'd use the weakness to ring Dell's bell.

Jamie Dlugosch is a contributor to OptionsZone.com.