IBMpressive

My first post dealt with some wise financial maneuvering by IBM. At that time, IBM was freezing its pension plan, reducing the growth of these onerous, but underappreciated employee benefits. I marvelled at the lack of an outcry.

IBM again showed its prowess in the fourth quarter results. Although IBM's fourth-quarter revenue came in a little shy of expectations, falling 6.4 percent from a year ago, the company also managed to cut costs by 3-4 percent. A lower tax rate also helped.

IBM is dealing with the reality of a top-line challenged world (read excess capacity) by reallocating efforts to top line growth (managers become sales people), outsourcing non-selling functions and controlling tax costs. Look for other companies to follow, if they're smart.