RSA Settles SEC Charges

The SEC said RSA made misleading statements in an April 10, 2001, press release and conference call that made it appear that its ability to meet analysts' earnings expectations resulted solely from its operations instead of partly due to an accounting change.

During the quarter, RSA had a one-time increase in its operating income, net income and earnings because of a change in the way it recognized revenue from distributors, the SEC said. The change complied with generally accepted accounting principals but should have been disclosed in the earnings release, federal regulators said.

RSA said it did not admit or deny any wrongdoing in its settlement with the SEC, which ordered the vendor to cease and desist from committing or causing any violations of antifraud provisions of federal securities laws.

RSA, a Bedford, Mass.-based maker of two-factor authentication and other security products, initially disclosed the SEC investigation in early 2002.