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RSA Security Gets Back Into The Black

The identity-management and authentication vendor reported its first profitable quarter in two years.
Despite tough tech times, RSA Security Inc. struggled back to profitability for the first time in nearly two years. It wasn't too many analyst calls ago that the identity-management and authentication security vendor's president and CEO, Art Coviello, said, "We're not out of the woods yet" when asked about the health of the company.

On Thursday, Coviello seemed a bit more bullish during a call with analysts: "RSA is back," he said.

The company reported revenue for the first quarter, ended March 31, of $61.3 million, up from $55 million for the same period last year. RSA reported net income of $1.7 million, up from a net loss of $13.7 million in the year-ago quarter.

For the second quarter, RSA expects revenue to range from $58 million to $63 million. The company said it hopes to keep capital expenditures to $4 million to $6 million this year.

Despite the company's positive quarter, Coviello said businesses are still slow to roll out new IT projects, and that several million dollars in deals were deferred at the end of the quarter because of economic and war uncertainties.

Coviello said RSA won 900 new clients during the quarter.