RSA Posts 2Q Loss, Names New CFO

RSA Security

The security software vendor, based here, lost $25 million on $56.5 million in revenue for the quarter ended June 30. That compares with income of $13.3 million on $80.8 million in revenue for the same quarter a year ago.

RSA said its results included restructuring charges of $22.7 million and $15.3 million in other charges. Excluding those charges, the company reported a loss of $2.1 million from its core operating business, compared with core operating income of $10.1 million in the same quarter a year ago.

In April, RSA announced a company restructuring and laid off approximately 200 employees, or roughly 17 percent of its worldwide work force.

A second-quarter loss of 4 cents per share, excluding charges, compared to First Call/Thomson Financial consensus estimate of a loss of 5 cents per share.

RSA also announced the appointment Wednesday of Jeff Glidden as senior vice president of finance and operations and CFO.

Glidden, previously senior vice president of finance and CFO for Stream International, is replacing John Kennedy, who is retiring at the end of the month.

CEO and President Art Coviello said in a conference call that orders were up 10 percent from the first quarter. He also said the company's cash position was $71 million, up from $69 million at the end of the first quarter.

"Make no mistake about it, it's still an extremely tough selling environment," Coviello said.

Still, RSA is confident that it is well positioned for the inevitable economic turnaround, he said.

RSA said in a statement that WorldCom's orders represent less than 5 percent of its revenue and that RSA "has no balance sheet exposure with respect to WorldCom's bankruptcy filing."