[ISN] RSA SecurID Breach Cost $66 Million

From: InfoSec News <alerts_at_private>
Date: Fri, 29 Jul 2011 04:06:53 -0500 (CDT)

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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Received on Fri Jul 29 2011 - 02:06:53 PDT

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