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Secure Computing losses widen

The Internet security company reports declining revenues and a fourth-quarter loss that were larger than analysts' expectations.

Internet security company Secure Computing's (SCUR) declining revenues and fourth-quarter loss caused its stock to take a dip.

The company's stock closed at 7-5/8, down 3/8 from yesterday's close of 8.

Wall Street had expected the company to post a loss of 34 a share, according to First Call.

The loss was not only worse than what Wall Street analysts had projected but lower than the company's January 9 downward revision, when it said its losses would be 31 to 36 cents a share.

Revenues for the quarter slipped to $9 million from $9.1 million a year ago.

Revenues for the entire year rose 44 percent to $40.3 million, compared with $27.9 million for the previous year. The net loss, however, widened to $25 million for the year, up from a loss of $632,000 a year ago.

"During 1996, Secure Computing transformed itself from a firewall company into a true Internet and intranet security company," said Jeff Waxman, chairman, president, and chief executive, in a statement. He added that the company now must boost its sales and marketing efforts.

Waxman joined Secure Computing in November and this week added the new title of chairman. Kermit Beseke, who had held all three positions until November, resigned along with a senior sales executive earlier this month when the company warned it would not meet investment analysts' expectations.

The company, which announced the news after the market's close, saw its stock finish the day unchanged at 8 yesterday.