Restructuring charges and poor sales mar RSA Security results

RSA Security blamed a combination of one-time restructuring charges and sluggish sales for a $25m loss for the second quarter of...

RSA Security blamed a combination of one-time restructuring charges and sluggish sales for a $25m loss for the second quarter of 2002.

Arthur Coviello, RSA president and chief executive officer, admitted the market was "still oppressive".

For the quarter ending 30 June, RSA posted a net loss of $25m, based on US generally accepted accounting principles, down sharply from a net income of $13.3m, for the same quarter last year.

The loss included a series of one-time charges, including a restructuring charge of $22.7m, an $8.5m charge because of a decline in the value of investments and $6.8m in other charges.

RSA's core operating business, which excludes the operations of the company's RSA Capital division, posted a net loss of $2.1m for the quarter, down from a net income of $10.1m for the same period last year.

However, RSA tallied revenue of $56.5m, down from the $80.8m the company brought in during the second quarter of 2001, but slightly higher than the $55.1m forecast by analysts.

The company's higher-than-expected revenue illustrates RSA is "well-positioned for the time when IT spending inevitably does increase", Coviello said.

"This quarter's performance demonstrates an underlying strength in our core operations," he said.

RSA spent $13.9m on research and development, down from the $16.m it spent in the same quarter last year.

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