Rainbow Technologies Inc.

The Irvine provider of Internet and electronic commerce security products posted lower net income for the fourth quarter despite record revenue.

The company said the economic slowdown affected fourth-quarter results, and could continue through at least the first two quarters of the year.

Rainbow earned $2.2 million, or 8 cents a share, for the three months, including a loss of $1.4 million from marketable securities. Net income for the prior-year period was $3.1 million, or 12 cents a share. Revenue increased 25% to $44.2 million.

For the year, Rainbow recorded net income of $15 million, or 54 cents a share, which included a gain of $2.9 million from marketable securities and a charge of $2.2 million from asset impairments. Net income for 1999 totaled $8.1 million, or 34 cents a share. Revenue increased 35% to a record $163.3 million.