RSA settles with SEC

RSA Security has reached an agreement with the US Securities and Exchange Commission (SEC) that resolves an SEC investigation...

RSA Security has reached an agreement with the US Securities and Exchange Commission (SEC) that resolves an SEC investigation into statements made by the company about its earnings in 2001.

As part of the settlement, RSA will not admit guilt or deny wrongdoing, nor will the company or its officers pay any penalties, according to company spokesman Tim Powers.

RSA will agree to an SEC order to obey the antifraud provisions of federal securities laws.

The company is, essentially, acknowledging that it has always abided by federal securities laws and that it will continue to do so, Powers said.

The investigation stemmed from a press release concerning RSA's financial results for the first quarter of 2001, which reported revenue of $76.3m (£47m), but did not disclose a change in the way RSA recognised revenue from products sold through distributors that was included in the company's financial report for that quarter.

Those changes resulted in an additional $1.7m in revenue, RSA said.

The SEC maintained that the change in revenue recognition should have been included in the press release as well as on the financial report.

While RSA admitted no wrongdoing and will pay no penalties, the SEC was not wrong either, according to Powers.

Paul Roberts writes for IDG News Service

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