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[ISN] RSA SecurID Breach Cost $66 Million
By Mathew J. Schwartz
July 28, 2011
Between April and June 2011, EMC spent $66 million dealing with the
fallout from a March cyber attack against its systems, which resulted in
the compromise of information relating to the SecurID two-factor
authentication sold by EMC's security division, RSA.
That clean-up figure was disclosed last week during an EMC earnings
call, by David Goulden, the company's chief financial officer. It
doesn't include post-breach expenses from the first quarter, when EMC
began investigating the attack, hardening its systems, and working with
customers to prevent their being exploited as a result of the attacks.
In spite of the breach, EMC reported strong second-quarter financial
results, earning consolidated revenue of $4.85 billion, which is an
increase of 20% compared with the same period one year ago. Meanwhile,
second-quarter GAAP net income increased by 28% from the same period
last year, to reach $546 million. The company saw large growth in its
information infrastructure and virtual infrastructure products and
services, including quarterly revenue increases of 19% for its
information storage group.
Those results led executives to increase their financial outlook for
2011 and predict consolidated revenue in excess of $19.8 billion, which
would be a 16% increase from EMC's 2010 revenues of $17 billion.
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