If the IBM-Board meets Tuesday, the key decision will face as deeply to cut this period. And the result would be to say much about how fast and powerful, as the company’s new chief executive, Louis V. Gerstner Jr., wants its mark on the troubled computer giant, he joined in April.

Most of Wall Street and industry analysts expect that the sources of board to take a cargo of large profits for the second quarter against the closure of factories and equipment balances, since the company streamline its activities. The fee for the cutting of production capacity - which could be enriched by $ 1 billion to over U.S. $ 4 billion, said one analyst - would, in addition to $ 2 billion of depreciation announced earlier this month as provided for greater reduction of staff. The operating loss expected

The International Business Machines Corporation is also expected to announce its second quarter results after the committee meeting. In addition to a special levy for the reductions, analysts predict that the report is an IBM operating loss in the area of $ 140 million to $ 180 million.

Most analysts believe that the board decides Tuesday on the slice of IBM dividend for the second time this year, given that the company cash to recover the fighting. The quarterly distribution is 54 cents and analysts predict that this is more than half, or 25 cents.

The computer industry are also noted, if the name of IBM or compensation for its two onboard. Three out of directors recently decided to bottom, and Tuesday of the meeting are also the last of Jack D. Kuehler, a vice-president of IBM, retired. A clean, bold stroke

If you are a second quarter enormous fees is that it works to the advantage of Mr. Gerstner - and IBM - for financial housecleaning necessary for a stroke and bold move with the reconstruction process. That must stop IBM, analysts say, is its recent history, the costs quarter after quarter, year after year, react to market changes, rather than control.

“Death by a thousand cuts is exactly what IBM has done for years,” said David Yoffie, a professor at the Harvard Graduate School of Business Administration. “Gerstner has helped to reduce as much as possible, as quickly as possible, that behind him.

Mr. Gerstner, provides Dan Mandresh, an analyst for Merrill Lynch & Company, is in favour of a “clear the decks” approach.