SEC And RSA Security Settle Financial Probe - InformationWeek
IoT
IoT
Business & Finance
News
7/24/2003
11:11 AM
50%
50%

SEC And RSA Security Settle Financial Probe

RSA did not admit any wrongdoing, and no penalties were levied against the company or its officers.

Information security firm RSA Security Inc. said late Wednesday that it had reached an agreement with the U.S. Securities and Exchange Commission regarding an investigation into the company's financial results for the first quarter of 2001.

The SEC investigation was launched in January 2002. In the settlement, RSA did not admit any wrongdoing, and no penalties were levied against the company or its officers. In a statement, RSA said the company will agree to an SEC order to stay in line with anti-fraud provisions of federal security laws.

"We're glad to have this whole thing behind us," a spokesman for RSA says.

The investigation began in 2001 when a press release stating the company's earnings for the first quarter that year failed to mention a change in the way RSA booked product sales sold through its distributors. That information was, however, disclosed in the company's 10Q form for that period.

The change in the way RSA decided to book revenue resulted in an increase of $1.7 million for that quarter.

The SEC maintains that the change in revenue from product sales should have also been mentioned in the company's financial press release for that quarter, as well as in the 10Q report.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll