SecureWorks, a Dell security company spinoff, reported revenue of $107.1 million for its fiscal third quarter of 2017 which ended October 28. That was a 21.5 percent increase over fiscal third quarter 2016 when it reported $88.2 million. The 16-year-old company has steadily reported revenue increases in the 20 percent range for the past three years.
The company’s non-GAAP revenue increased 20.8 percent to $107.3 million, compared to $88.9 million in its third quarter of fiscal 2016. Non-GAAP net loss was $7.7 million, or $0.02 per share, compared to the same period last year when it reported a net loss of $18.5 million, or $0.18 per share.
The company’s efforts to turn a profit appear to have some investors worried. SecureWorks stock dropped from $12.45 per share at closing yesterday, to $11.86 per share this morning.
SecureWorks management said the company cut costs in research and development, and sales and marketing, in order to create more cash flow.
Based on its third quarter performance and current slump in security spending, SecureWorks expects its fourth fiscal quarter revenue, on a GAAP and non-GAAP basis, to be in the $116 to $117 million range — an increase, but not in the 20 percent range the company is accustomed to seeing. With that said, it’s expecting its non-GAAP net loss to increase back up to $0.05 to $0.07 per share.