On Wednesday, Secureworks Corp (NASDAQ:SCWX) showed bearish trend with lower momentum of -9.23% to close at $10.33. The company traded total volume of 258,883 shares as contrast to its average volume of 85,629 shares. The company has a market value of $830.41 million and about 10.67 million shares outstanding. During the 52-week trading session the minimum price at which share price traded, registered at $10.20 and reached to max level of $11.13.
SecureWorks (SCWX), a leading provider of intelligence-driven information security solutions, recently declared its financial results for its fourth fiscal quarter and its full fiscal year 2017 ended February 3, 2017.
Fourth Quarter 2017 Financial Results Highlights:
Revenue raised 26.40 percent to $118.90M from $94.10M in the fourth quarter of fiscal 2016. Non-GAAP revenue raised 25.70 percent to $119.20M from $94.80M in the fourth quarter of fiscal 2016.
Apart from the additional week of operations in the fourth quarter of fiscal 2017, revenue raised 16.90 percent, and non-GAAP revenue raised 16.30 percent over the fourth quarter of fiscal 2016.
Gross margin was 52.70 percent, up from 47.20 percent in the fourth quarter of fiscal 2016. Non-GAAP gross margin rose to 55.80 percent from 51.30 percent in the fourth quarter of fiscal 2016. The increase in GAAP and non-GAAP gross margins was because of strong revenue growth and efficiencies as we continued to leverage our global service delivery model.
Operating loss was $12.0M; non-GAAP operating loss was $2.10M.
Net loss was $6.80M, or $0.09 per share, contrast to a net loss of $14.90M, or $0.21 per share, in the fourth quarter of fiscal 2016. Non-GAAP net loss was $1.60M, or $0.02 per share, contrast to a non-GAAP net loss of $9.20M, or $0.13 per share, in the fourth quarter of fiscal 2016.
Adjusted EBITDA was a positive $0.80M, contrast to a loss of $11.10M in the fourth quarter of fiscal 2016.
The number of weighted average shares outstanding during the fourth quarter was about 80.0M.
Monthly recurring revenue as of February 3, 2017 raised 10.50 percent to $31.60M from $28.60M as of January 29, 2016. The Company’s monthly recurring revenue metric represents the monthly value of its subscription contracts, counting operational backlog, as of period end.
Fiscal 2017 Financial Results Highlights:
Revenue in fiscal 2017 raised 26.50 percent to $429.50M from $339.50M in fiscal 2016. Non-GAAP revenue raised 25.70 percent to $430.40M from $342.30M in fiscal 2016.
Apart from the 53rd week of operations in fiscal 2017, revenue growth was 23.90 percent, and non-GAAP revenue growth was 23.10 percent contrast to the fourth quarter of fiscal 2016.
Gross margin was 50.50 percent, up from 45.90 percent in fiscal 2016. Non-GAAP gross margin rose to 53.90 percent from 51.80 percent in fiscal 2016. The increase in GAAP and non-GAAP gross margins was because of strong revenue growth and efficiencies as we leveraged our global service delivery model.
Operating loss for fiscal 2017 was $66.0M; non-GAAP operating loss was $26.10M.
Net loss was $38.20M, or $0.49 per share, contrast to a net loss of $72.40, or $1.03 per share, in fiscal 2016. Non-GAAP net loss was $14.50M, or $0.19 per share, contrast to a non-GAAP net loss of $43.10M, or $0.62 per share, in fiscal 2016.
Adjusted EBITDA was a loss of $15.60M, contrast to a loss of $48.0M in fiscal 2016.
The number of weighted average shares outstanding during fiscal 2017 was about 77.60M.
SecureWorks ended the fiscal year with $116.60M in cash and cash equivalents.
First Quarter and Full Fiscal Year 2018 Guidance:
Based on current market conditions, the Company anticipates the following results for the first quarter and full fiscal year ending on February 2, 2018:
For the first quarter, the Company anticipates:
- Revenue, both GAAP and non-GAAP, to be in the range of $110 to $111.0M.
- Net loss per share to be in the range of $0.14 to $0.15 and non-GAAP net loss per share to be in the range of $0.05 to $0.06.
- About 80.075M weighted average shares outstanding during the first quarter of fiscal 2018.
For fiscal year 2018, the Company anticipates:
- Revenue to be between $457 to $463.0M. Non-GAAP revenue to be in the range of $458 to $464.0M.
- Net loss per share to be in the range of $0.52 to $0.56 and non-GAAP net loss per share to be in the range of $0.18 to $0.22.
- Net loss to be in the range of $42 to $45.0M and adjusted EBITDA loss to be in the range of $12 to $17.0M.
- About 80.349M weighted average shares outstanding during fiscal year 2018.
- Capital expenditures to be about $18 to $20.0M.
- Monthly recurring revenue to be in the range of $34.40 to $36.40M at the end of the fourth quarter of fiscal 2018.
“We had a strong finish to fiscal 2017. Revenue for the quarter surpassed the top end of our guidance. We continued to improve our gross margin this quarter, and we narrowed our net loss,” said Michael R. Cote, Chief Executive Officer of SecureWorks. “Our technology leadership, exclusive focus on information security and client-centric culture exclusively position SecureWorks to deliver solutions that offer a powerful integrated approach to protect our clients’ ecosystems against cyber threats. As we enter fiscal 2018, I am eager about our opportunity to create even greater competitive separation and capitalize on the market opportunity ahead.”
The Company offered net profit margin of -11.40% while its gross profit margin was 49.10%. ROE was recorded as -6.90%. The stock, as of recent close, has shown weekly downbeat performance of -9.70% which was maintained at -2.46 % in this year.
