BEDFORD, Mass., April 10 /PRNewswire/ -- RSA Security Inc. (Nasdaq: RSAS)
today reported financial results for the first quarter ended March 31, 2001.
Revenue for the first quarter of 2001 increased 21% to $76.3 million, from
$63.3 million for the first quarter of 2000. Reported net income for the first
quarter of 2001, including the operations of RSA Capital, was $8.8 million
($.14 per share on a diluted basis), compared to $24.6 million ($.37 per share
on a diluted basis) for the first quarter of 2000. Reported net income for the
first quarter of 2001 includes a pre-tax gain of $14.3 million from investing
activities. Earnings for the quarter from the company's core operating
business were $9.6 million ($0.16 per share on a diluted basis) from
$8.6 million ($0.13 per share on a diluted basis) for the same period in 2000.
"We are off to a solid start in 2001, meeting Q1 earnings expectations in
a difficult economic environment," said Art Coviello, CEO and president of RSA
Security. "With a very strong bookings quarter, we expect to continue to meet
our financial targets."
Q1 Highlights
-- The company completed the acquisition and integration of Xcert, less
than four weeks after closing the transaction, and it remains on
schedule to deliver a new, integrated certificate authority based on
the Xcert Sentry product in Q4.
-- The company introduced RSA SecurID Card Studio, a cryptographic smart
card personalization system that is designed to enable a single card to
be programmed for network access, digital credentials, physical
building access and corporate identification.
-- The company shipped the RSA Keon Web Passport, a new addition to its
RSA Keon family of PKI products. RSA Keon Web Passport is a
downloadable credential store designed to make PKI implementations
easier by managing and simplifying the use of roaming digital
certificates.
About RSA Security Inc.
RSA Security Inc., The Most Trusted Name in e-Security(TM), helps
organizations build secure, trusted foundations for e-business through its RSA
SecurID two-factor authentication, RSA BSAFE encryption and RSA Keon digital
certificate management systems. With approximately one billion RSA
BSAFE-enabled applications in use worldwide, more than eight million RSA
SecurID authentication users and almost 20 years of industry experience, RSA
Security has the proven leadership and innovative technology to address the
changing security needs of e-business and bring trust to the online economy.
RSA Security can be reached at http://www.rsasecurity.com.
NOTE: RSA, Keon, SecurID, ACE/Server and BSAFE are registered trademarks,
and The Most Trusted Name in e-Security is a trademark of RSA Security Inc.
This press release contains forward-looking statements relating to the RSA
Security's ability to maintain or improve its market leadership. Such
statements involve a number of risks and uncertainties. Among the important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are changes in customer
requirements and industry standards, technological changes in the computer
industry, competitive pressures, economic factors and the risk factors
detailed from time to time in RSA Security's periodic reports and registration
statements filed with the Securities and Exchange Commission, including
without limitation RSA Security's Annual Report on Form 10-K filed on
March 28, 2001.
Statement of Operations Core Operating Business
(in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
(unaudited)
Revenue $76,340 $63,340
Gross profit 61,332 50,450
Operating expenses:
Research and development 13,175 10,934
Marketing and selling 30,438 21,989
General and administrative 7,957 7,682
Total operating expenses 51,570 40,605
Operating income 9,762 9,845
Interest income and other 4,000 3,188
Income before provision for income taxes 13,762 13,033
Provision for income taxes 4,129 4,431
Net Income $9,633 $8,602
Net income per share - basic $0.17 $0.15
Weighted average number of common shares
- basic 56,476 58,976
Net income per share - diluted $0.16 $0.13
Weighted average number of common shares
- diluted 61,729 65,808
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
(unaudited)
Revenue $76,340 $63,340
Gross profit (i) 55,801 50,450
Operating expenses:
Research and development (i) 16,586 10,934
Marketing and selling (i) 31,252 21,989
General and administrative (i) (ii) 9,948 8,036
Amortization of goodwill and intangibles (i) 1,334 --
Total operating expenses 59,120 40,959
Operating income (3,319) 9,491
Interest income and other (i) 4,479 3,188
Income from investing activities (i) 13,783 27,038
Income before provision for income taxes 14,943 39,717
Provision for income taxes 6,182 15,117
Net Income $8,761 $24,600
Net income per share - basic (iii) $0.09 $0.42
Weighted average number of common shares
- basic 56,476 58,976
Net income per share - diluted $0.14 $0.37
Weighted average number of common shares
- diluted 61,729 65,808
(i) Includes non-core activities.
(ii) General and administrative expenses included $414 and $1,344 related
to non-core activities of the Company's RSA NEST and Capital units,
respectively, for the three months ended March 31, 2001.
(iii) Basic earnings per share is based on net income net of financing
costs on forward equity contracts of $3,598 for the three months
ended March 31, 2001; a non-core activity
Condensed Consolidated Balance Sheets
March 31, December 31,
2001 2000
(unaudited)
Current assets
Cash and cash equivalents $251,679 $301,897
Marketable securities 45,193 33,205
Accounts receivable (less allowance
for doubtful accounts of $2,069 in
2001 and $2,006 in 2000) 57,438 54,979
Inventory 5,665 3,707
Prepaid expenses and other 15,704 20,389
Total current assets 375,679 414,177
Property and equipment, net 69,221 64,207
Other assets
Investments 74,254 87,688
Goodwill 42,950 --
Intangibles 21,659 --
Deferred taxes 25,979 20,723
Other 3,942 2,719
Total other assets 168,784 111,130
$613,684 $589,514
Current liabilities
Accounts payable $13,442 $7,663
Accrued payroll and related benefits 14,420 16,023
Accrued expenses and other 15,285 12,649
Income taxes payable 27,141 26,249
Deferred revenue 29,714 25,444
Deferred taxes 26,354 20,482
Total current liabilities 126,356 108,510
Stockholders' equity 487,328 481,004
$613,684 $589,514
SOURCE RSA Security Inc.
 back to top
Related links:
http://www.rsasecurity.com
CONTACT:
Timothy Powers, 781-301-5344, or
tpowers@rsasecurity.com, or investors, Steve Casey, 781-301-5131,
or scasey@rsasecurity.com, both of RSA Security Inc.
|
