Feeds

RSA Security faces SEC injunction threat

Questions over disclosure levels

  • alert
  • submit to reddit

High performance access to file storage

ComputerWire: IT Industry Intelligence

The US Securities and Exchange Commission may file for a civil injunction against RSA Security Inc, following an investigation into the company's disclosures of revenue recognition changes, it emerged this week.

In an SEC filing, RSA said SEC officers are to seek permission to "commence a civil injunctive proceeding" and that RSA will "submit a written statement explaining why no such proceeding should be commenced."

"We were notified that part of the next step of the investigative process may be a civil injunction procedure," RSA spokesperson Tim Powers told ComputerWire. "We're giving them more information on why they don't need to go to this next step."

The investigation, which began in January 2002, was into whether RSA provided adequate disclosure to investors that it had changed its accounting practices in the first quarter 2001. The company disclosed in its quarterly SEC filing that it had changed its practices, but did not press release the information at the time it announced its earnings.

In the first quarter 2001, RSA changed its revenue recognition procedures from "sell-through" to "sell-in", said Powers. This means that it went from recognizing revenue after the end user purchase to recognizing revenue as sales were made to distributors.

The change resulted in an increase in revenue of $1.7m for the three months ended March 31, 2001, according to RSA's Q101 SEC filing. Overall, revenue for that quarter increased 21% year-on-year to $76.3m.

© Computerwire.com. All rights reserved.

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.