RBC Capital Downgrades RSA Security

Analyst Robert Breza says the computer security products company's new products will take time to sell given customers wait until late 2005 for integration of the new products

RBC Capital downgrades computer security products company RSA Security (RSAS ) to sector perform from outperform.

Analyst Robert Breza tells salesforce at mid-point, change in first-quarter guidance signaled a 9% miss in his revenue and 36% in his earnings per share estimates.

He says deferred revenue is likely to fall sequentially by several million on weaker maintenance renewals, while authentication backlog should be about flat sequentially at $10 million. He thinks new products will take time to sell given many customers are likely to wait until late 2005 for integration of new products.

Breza cuts his 14 cents first-quarter earnings per share estimate to 9 cents, $82.4 million revenue to $75.2 million, 70 cents 2005 earnings per share to 54 cents, and $353 million revenue to $320.7 million. He lowers his $20 target to $14.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE