SecureWorks Corp. (NASDAQ: SCWX) reported Q2 EPS of ($0.07), $0.01 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $116 million versus the consensus estimate of $113.74 million.

• Revenue increased 12 percent year-over-year to $116 million.
• Gross margin increased 250 basis points over last year; non-GAAP gross margin increased 210 basis points over last year.
• Net cash provided by operating activities was $11.2 million for the three months ended August 4, 2017.
• Increased Fiscal Year 2018 Revenue guidance to be in the range of $462 to $465 million; Non-GAAPRevenue guidance to be in the range of $463 to $466 million.

Third Quarter and Full Fiscal Year 2018 Guidance

Based on current market conditions, second quarter performance and the continued investment in its sales organization, the Company expects the following results for the third quarter ending on November 3, 2017 and the full fiscal year ending on February 2, 2018:

For the third quarter, the Company expects:

• Revenue to be in the range of $115 to $116 million on both a GAAP and non-GAAP basis.
• Net loss per share to be in the range of $0.17 to $0.19 and non-GAAP net loss per share to be in the range of $0.09 to $0.10.
• Approximately 80.362 million weighted average shares to be outstanding during the third quarter of fiscal 2018.

For fiscal year 2018, the Company now expects the following results, updating previously announced full year guidance:

• Revenue to be in the range of $462 to $465 million and non-GAAP revenue to be in the range of $463 to $466 million.
• Net loss to be in the range of $52 to $54 million and adjusted EBITDA loss to be in the range of $21 to $25 million.
• Net loss per share to be in the range of $0.65 to $0.68 and non-GAAP net loss per share to be in the range of $0.29 to $0.32.

In addition, the Company affirmed the following previously provided guidance:

• Monthly recurring revenue to be in the range of $34.4 to $36.4 million at the end of the fourth quarter of fiscal 2018.
• Approximately 80.286 million weighted average shares to be outstanding during fiscal year 2018.
• Capital expenditures to be approximately $18 to $20 million.

GUIDANCE:

SecureWorks Corp. sees FY2018 EPS of ($0.32)-($0.29), versus the consensus of ($0.32). SecureWorks Corp. sees FY2018 revenue of $462-465 million, versus the consensus of $463.14 million.

For earnings history and earnings-related data on SecureWorks Corp. (SCWX) click here.