RSA Security wields the axe

NEWS RSA Security is to lay off 15 per cent of staff and slash employee salaries by ten per cent, after posting poor third quarter results. RSA reported revenue of $62.6m for the quarter ending 30 September 2001, down from $72m for the same quarter last year. Net loss rose to $5.4m or 10 cents a share. Including one off corporate charges and losses from RSA capital operations - the company's investment arm - gross loss jumped to $15.5m. Earlier in the quarter, the company forecast that loss would be between $12.5m and $14.1m. In the same quarter last year the company made a net profit of $10.2m. RSA will now merge its Capital Operations division back into its core business and reduce expenditure on investments. For the fourth quarter RSA expects a loss of between 15 and 17 cents a share, including unusual charges.