Secureworks (SCWX 10.88, +0.16, +1.49%) is higher after reporting second quarter results and issuing better than expected guidance.
The provider of cybersecurity services for organizations reported a slightly slimmer than expected loss of $0.06/share on a 10.8% year/year increase in revenue to $126.16 mln, which exceeded estimates.
Monthly recurring revenue, which includes the monthly value of subscription contracts and operational backlog, grew 11.4% year/year to $35.50 mln.
Gross margin declined to 54.9% from 56.1% one year ago.
Cash and cash equivalents declined 15.6% year/year to $77.30 mln. The company used $18.40 mln for operating activities, down from $19.66 mln used one year ago.
Secureworks adjusted its guidance to reflect the adoption of accounting standards ASC 606 and ASC 340-40. The company expects to report a second quarter loss between $0.06/share and $0.05/share on revenue between $127 mln and $128 mln, which is ahead of market expectations.
Secureworks tightened its guidance for the full year, priming the market for a loss between $0.19/share and $0.15/ share after previous guidance called for a loss between $0.20/share and $0.16/ share. Revenue is expected between $515 mln and $518 mln, up from previous guidance for revenue between $512 mln and $516 mln. The company's revenue guidance range is ahead of expectations.