RSA settles with SEC

RSA Security Inc. said Wednesday that it reached an agreement with the U.S. Securities and Exchange Commission (SEC) that resolves an SEC investigation into statements made by the company about its earnings in 2001.

As part of the settlement, RSA will not admit guilt or deny wrongdoing, nor will the company or its officers pay any penalties, according to company spokesman Tim Powers.

The Cambridge, Massachusetts, company will agree to an SEC order to obey the antifraud provisions of federal securities laws, RSA said in a statement.

The company is essentially acknowledging that it has always abided by federal securities laws and that it will continue to, Powers said.

The investigation stemmed from a press release concerning RSA’s financial results for the first quarter of 2001.

That press release, which reported revenue of $76.3 million, did not disclose a change in the way RSA recognized revenue from products sold through distributors that was included in the company’s 10Q form for that quarter.

Those changes resulted in an additional $1.7 million in revenue, approximately $0.02 per share, RSA said.

The SEC maintained that the change in revenue recognition should have been included in the press release as well as on the 10Q, he said.

While RSA admitted no wrongdoing and will pay no penalties, the SEC was not wrong either, according to Powers.

“There was a settlement,” he said.

The agreement announced Wednesday closes the inquiry, Powers said.

“We’re happy to have this issue behind us,” Powers said.