RSA Reports Loss; Revenue Dips

RSA Reports Loss; Revenue Dips

Written By
Dennis Fisher
Dennis Fisher
Jan 23, 2003
1 minute read
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RSA Security Inc. on Thursday reported a net loss of $49.8 million, or $0.88 per share, on revenue of $61 million for the fourth quarter of 2002. Those numbers represent a three percent decline in revenue from the same period in 2001.

The company also reported a loss of $96.8 million for all of 2002, compared to a loss of $2.5 million in 2001. Revenue for the full year was down $50 million to $232.1 million.

Both the fourth-quarter and year-end numbers suffered due to a number of large charges RSA took related to its restructuring, including severance, closing of some facilities and inventory write-downs. The charges came to nearly $64 million in the fourth quarter.

The authentication division continued to be RSAs strongest performer, delivering $50 million in revenue in the fourth quarter.

Despite the disappointing results, RSA officials said sales continue to be strong and that they are optimistic about the companys future now that the restructuring is complete.

“Weve simplified and focused our operations, albeit at a tremendous cost to our balance sheet and our employees,” said Art Coviello, president and CEO of RSA, based in Bedford, Mass. The company also said that orders last quarter were up significantly from the third quarter.

RSA officials are expecting a tax refund in the second half of the year of about $57 million.

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