Dell says that it is looking to cut costs and expand further into markets that are generating revenue today, including netbooks. Netbooks are one of the few categories of the computer industry that is growing impressively during the global economic downturn.

EWeek reports that Dell recently announced poor Q4 financials with revenues dropping by 16% to $13.4 billion. Because of the poor results, Dell is said to be eyeing further cost reduction methods and expansion into other areas. In addition to netbooks, Dell is also looking at the cloud and enterprise solutions area.

The computer maker announced that it was increasing its cost savings goals from $3 billion by 2011 to $4 billion over the same time frame. Finding an additional $1 billion in savings will likely mean Dell will be making more job cuts and possibly closing more facilities.

Dell operating expenses are down significantly reports eWeek with a reduction of $365 million year over year. Despite the increased cost cutting measures, Dell maintains that it has cash on hand and that increasing profits could mean snapping up smaller companies that could add to Dell's bottom line. Dell CFO Brian Gladden said, "We'll be opportunistic; we have the cash to do that." Dell reportedly has about $9 billion in cash on hand.

Gladden also says that Dell will be looking at all facets of its business for cost cutting opportunities and said that netbooks will continue to be an area that the computer giant focuses on. Some analysts aren’t as optimistic as Dell is.

Dinesh Moorjani from Broadpoint AmTech said, "We are not dismissing our view of Dell as a turn-around story, but believe it will take a few quarters for Dell to see the returns from its strategic overhaul and investments in the indirect channel."

Dell recently announced its latest netbook called the Inspiron Mini 10.