RSA Security Cuts Its Loss, Meets Estimates

This summer, RSA disclosed that SEC staff is considering seeking the commission's permission to commence a civil injunctive proceeding against the company. In January, the SEC notified RSA that it was conducting a formal investigation of trading in the company's stock and of the company's disclosure of a change in its method for estimating distributor revenue in the first quarter of 2001.

On Wednesday, RSA said the company and certain officers submitted a statement Aug. 2 to the SEC explaining why they believe no action should be brought against them. The company said it is continuing to cooperate with the SEC.

Shares of RSA sank 39 cents, or 11.4%, to close Wednesday at $3.03. In after-hours trading, shares moved down fractionally to $3.