SecureWorks Corp. (SCWX) saw its loss narrow to $7.72 million, or $0.10 a share for the quarter ended Oct. 28, 2016. In the previous year period, the company reported a loss of $18.53 million, or $0.26 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.24 million, or $0.02 a share from a loss of $12.38 million or $0.18 a share, a year ago.
Revenue during the quarter grew 21.46 percent to $107.11 million from $88.19 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 49.92 percent. Operating margin for the quarter stood at negative 13.86 percent as compared to a negative 28.17 percent for the previous year period.
Operating loss for the quarter was $14.84 million, compared with an operating loss of $24.84 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.37 million compared to operating loss of $14.89 million in prior year period.
"In the third quarter, SecureWorks delivered balanced growth across our client base," said Michael R. Cote, chief executive officer of SecureWorks. "We continue to strategically invest in our core CTP and cloud technology to protect our clients against increasing cyber threats around the world. As the leading intelligence-driven provider of information security solutions, our opportunity to expand our client base is vast, and we are excited about the Company’s future prospects."
For fiscal year 2017, SecureWorks Corp. projects revenue to be in the range of $427 million to $428 million and projects adjusted revenue to be in the range of $427 million to $428 million. The company expects net loss to be in the range of $42 million to $44 million. It forecasts diluted loss per share to be in the range of $0.55 to $0.56 and forecasts diluted loss per share to be in the range of $0.22 to $0.24 on adjusted basis.
For the fourth-quarter 2017, SecureWorks Corp. projects revenue to be in the range of $116 million to $117 million and projects adjusted revenue to be in the range of $116 million to $117 million. The company forecasts diluted loss per share to be in the range of $0.14 to $0.15. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.05 to $0.07.
Operating cash flow remains negative
SecureWorks Corp. has spent $18.67 million cash to meet operating activities during the nine month period as against cash outgo of $6.20 million in the last year period.
The company has spent $13.28 million cash to meet investing activities during the nine month period as against cash outgo of $7.01 million in the last year period.
Cash flow from financing activities was $109.37 million for the nine month period, up 137.85 percent or $63.39 million, when compared with the last year period.
Cash and cash equivalents stood at stood at $110.84 million as at Oct. 28, 2016.
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