RSA Security said Monday it expects to report a loss for its just-ended first quarter.
The company, based here, said the loss will be approximately $14 million to $16 million on revenue of $55 million to $56 million for its first quarter.
That compares with net income of $8.8 million on revenue of $73.6 million for the same quarter a year ago.
In a conference call, Art Coviello, RSA CEO and president, blamed the first quarter shortfall on low IT spending.
"It's primarily an issue around the economy, particularly tech spending. We believe our product strategy is the right one. We're just not seeing the close rate that will generate the growth that we need," he said.
RSA's products include its SecurID authentication, BSAFE encryption tools, and Keon PKI technology to verify transactions.
Shares of RSA were trading at $7.42, down $1.58, in midday trading Monday.
Earlier this year, the company disclosed that the Securities and Exchange Commission launched a formal inquiry into its public handling of a change in an accounting practice
RSA plans to reveal its complete first-quarter results on April 11.