[Dataloss] follow-up: Hackers Break Into TJX's Bottom Line (fwd)

[security curmudgeon]

---------- Forwarded message ----------
From: InfoSec News <alerts at infosecnews.org>

http://www.forbes.com/markets/2007/08/14/tjx-retail-update-markets-equity-cx_jl_0814markets31.html

By Joshua Lipton
Forbes.com
08.14.07

TJX has learned the hard way that hackers can cause damage to both a 
company's sense of security and its balance sheet.

TJX, which operates discount stores like T.J. Maxx and Marshalls, told 
traders Tuesday morning that its profit was severely undercut as it 
absorbed a $118 million charge that resulted from a dramatic breach of 
customer data.

For the second-quarter ended July 28, the company said its net income fell 
57.3%, from $59 million, or 13 cents per share, versus $138.2 million, or 
29 cents per share, for the year-ago period.

The after-tax charge for the data breach totaled $118 million, or 25 cents 
per share. That charge includes $11 million, or 2 cents per share, for 
costs incurred during quarter as well as $107 million, or 23 cents per 
share, for the company's exposure to potential losses.

Excluding this charge, adjusted diluted earnings per share from continuing 
operations for the quarter were 38 cents versus 29 cents for the prior 
year, a 31% increase.

[..]