According to The Wall Street Journal, Dell (NASDAQ: DELL) is developing a pocket-sized electronic device to be used for connecting to the internet. The "gadget" would use Google's (NASDAQ: GOOG) Android software. Reportedly, the device will be slightly larger than Apple's (NASDAQ: AAPL) iPod touch, and Dell may start selling the device later this year. That said, the story's source noted that the plan could be delayed or scrapped entirely.

The importance of this potential device should not be lost, as it is one of the first experiments by a major PC maker in the world of mobile internet devices (MID). These devices are seen as bridges over the gap between smartphones and laptops.

Dell (NASDAQ: DELL) reported first-quarter numbers earlier in the week. It wasn't an awesome report by any stretch of the imagination. On a reported basis, every important metric was down. Revenues down 23%. Earnings per share down 61%. On an adjusted basis, Dell did beat expectations by a penny, coming in at $0.24 per share.

Now, what should we make of this? Indeed, I'm in something of a tough position over Dell. I was pretty bearish on the stock back in November. I still feel bearish, to be honest. Who wouldn't? A one-penny beat in this case just doesn't encourage me. PC sales have been challenged, and as my colleague Jamie Dlugosch pointed out, Dell just can't be considered a best-of-breed company. When you think best-of-breed computer stocks these days, you probably will think of Apple (NASDAQ: AAPL) first.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Eagle Outfitters Inc. (NYSE: AEO) reported better-than-expected Q1 earnings, lifting shares.
• AutoZone Inc. (NYSE: AZO) posted a better-than-expected Q3 profit said it will continue to buy back shares.
• Bank of Montreal (NYSE: BMO) reported lower Q2 earnings and also announced 1,100 layoffs.
• Big Lots Inc. (NYSE: BIG) higher Q1 earnings topped estimates even though same-store sales fell.
• BioMed Realty Trust Inc. (NYSE: BMR) earnings prospects after the recent capital raise led to a downgrade.

Dell Inc. (NASDAQ: DELL) is scheduled to discuss its fiscal first-quarter 2010 results today in a conference call featuring CEO Michael S. Dell and CFO Brian T. Gladden at 5:00 PM ET. You can catch the live webcast of the call on the company's website.

For the quarter in which the leading supplier of PCs and related hardware saw a change to its board of directors and new distributor relationships, analysts polled by Thomson Reuters expect the Round Rock, Tex.-based company to report earnings of $0.23 per share, down 39.5% from the same period of the previous year. Revenue for the quarter is expected to have fallen 21.1% to $12.7 billion. Dell's earnings have beat estimates in three of the past four quarters.

Dell Inc. (NASDAQ: DELL) started making an impact on eco-sustainability over a year ago by announcing how green the PC retailer would become. Low and behold, it recently showed up in first place at the first ranking of the Corporate Sustainability Index (CSI) Benchmark Report. Dell was rated along with a slew of other companies from the computer hardware, software, professional services, and network and telecommunications sectors. In other words, a pretty large field.

Dell (NASDAQ: DELL) closed Tuesday at $11.14. DELL is scheduled to report Q1 EPS on May 28. DELL June option implied volatility is at 55, August is at 51; versus its 26-week average of 57, according to Track Data, suggesting decreasing price movement after EPS.

Semiconductor Holders Trust (NYSE: SMH) overall volatility at 36; 26-week average is 43.

Russell 2000 (NYSE: IWM) overall implied volatility at 36; 26-week average is 45.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Back in 2002 to 2003, Oracle's (NASDAQ: ORCL) CEO, Larry Ellison, realized that the tech industry was maturing -- and the best strategy would be to engage in aggressive mergers & acquisitions (M&A). It was certainly prescient.

However, other major tech operators have been slow to the game. Just look at Dell (NASDAQ: DELL). While the company has struck some deals -- such as for EqualLogic in 2007 -- the activity has been muted.

With the credit squeeze and recession, the business environment has been volatile for business owners. As a result, it's been extremely difficult to manage inventory. Obviously, this is a dangerous thing -- given the costs of inventory (such as storage, financing, insurance, and so on).

The good news is that there are ways to deal with the volatility. So let's take a look.