RSA Security Cuts Its Loss, Meets Estimates

RSA Security reported Wednesday that it nearly halved its third-quarter net loss compared to a year ago. The company credited cost controls, and revenue that was slightly higher than Wall Street estimates, although lower than a year ago.

Calculated under generally accepted accounting principles, the Bedford, Mass.-based security software maker posted a third-quarter net loss of $8.2 million, or 14 cents a share, on $59 million in revenue in the third quarter. That compares to a net loss of $15.5 million, or 28 cents a share, on $62.6 million in revenue in the same period a year earlier. In the second quarter, the company reported a GAAP net loss of $25 million, or 44 cents a share, on $56.5 million in revenue.

RSA, which is under investigation by the Securities and Exchange Commission, reported a pro forma net loss of 1 cent a share in the third quarter, compared to a pro forma net loss of 10 cents a share a year earlier and a net loss of 4 cents a share in the previous quarter.

Wall Street analysts were expecting RSA's third-quarter revenue to come in sequentially flat at $56.4 million and were forecasting a pro forma net loss of a penny a share, according to Thomson Financial/First Call. The company's guidance predicted revenue would range from $54 million to $58 million in the third quarter, with earnings ranging from a pro forma net loss of 2 cents a share to pro forma net income of 2 cents a share. The company has not previously provided guidance beyond the third quarter.

Looking forward, RSA said it expects fourth-quarter pro forma earnings to range from a net loss of 2 cents a share to net income of 2 cents a share on revenue ranging from $56 million to $60 million. Analysts modeled the company earning 2 cents a share on $59.7 million in revenue in the fourth quarter.