SecureWorks (SCWX) saw its loss narrow to $6.82 million, or $0.09 a share for the quarter ended Feb. 03, 2017. In the previous year period, the company reported a loss of $14.90 million, or $0.21 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.58 million, or $0.02 a share from a loss of $9.18 million or $0.13 a share, a year ago.
Revenue during the quarter grew 26.43 percent to $118.95 million from $94.08 million in the previous year period. Gross margin for the quarter expanded 550 basis points over the previous year period to 52.75 percent. Operating margin for the quarter stood at negative 10.14 percent as compared to a negative 23.90 percent for the previous year period.
Operating loss for the quarter was $12.06 million, compared with an operating loss of $22.48 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.12 million compared to operating loss of $13.84 million in prior year period.
"We had a strong finish to fiscal 2017. Revenue for the quarter exceeded 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 uniquely position SecureWorks to deliver solutions that provide a powerful integrated approach to protect our clients' ecosystems against cyber threats. As we enter fiscal 2018, I am excited about our opportunity to create even greater competitive separation and capitalize on the market opportunity ahead."
For fiscal year 2018, SecureWorks projects revenue to be in the range of $457 million to $463 million and projects adjusted revenue to be in the range of $458 million to $464 million for financial year 2018. It expects net loss to be in the range of $45 million to $42 million. The company forecasts diluted loss per share to be in the range of $0.56 to $0.52 and forecasts diluted loss per share to be in the range of $0.22 to $0.18 on adjusted basis.
For the first-quarter, SecureWorks projects revenue to be in the range of $110 million to $111 million and projects adjusted revenue to be in the range of $110 million to $111 million. The company forecasts diluted loss per share to be in the range of $0.15 to $0.14. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.06 to $0.05.
Operating cash flow remains negative
SecureWorks has spent $6.84 million cash to meet operating activities during the year as against cash outgo of $9.84 million in the last year.
The company has spent $19.36 million cash to meet investing activities during the year as against cash outgo of $9.02 million in the last year.
Cash flow from financing activities was $109.37 million for the year, up 139.75 percent or $63.75 million, when compared with the last year.
Cash and cash equivalents stood at $116.60 million as on Feb. 03, 2017, up 248.86 percent or $83.17 million from $33.42 million on Jan. 29, 2016.
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