RSA loses $13.7m in first quarter

RSA Security has announced that it lost $13.7m (£9.5m) in the first quarter of this year, citing slow spending by enterprises...

RSA Security has announced that it lost $13.7m (£9.5m) in the first quarter of this year, citing slow spending by enterprises caused by uncertainty in the economy.

The company has been hurt by "lower than expected IT and IS spending", said Arthur Coviello, president and chief executive officer of RSA. Many companies "are electing to go without rather than purchase" new products, he added.

Revenue for the first quarter of 2002, which ended 31 March, was $55.5m (£38.6m), down from $76.3m (£53.1m) in the same quarter last year.

RSA posted a net loss, including its RSA Capital division, of $13.7m (£9.5m), down from a profit of $9.8m (£6.8m), in 2001.

For its core operating business, which excludes the RSA Capital division, the company lost $6m (£4m), down from a profit of $9.6m (£6.7m).

RSA will attempt to compensate for the state of the economy and spending by increasing its sales focus, structuring the company to cut the first-quarter loss in half in the second quarter, and reaching at least break even in cash flow in the second quarter, he said. Coviello declined to comment immediately on whether those initiatives would require job cuts.

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