10-Q Filing

SECUREWORKS CORP CIK: 1468666 Q3 2017

Filing Information

Form Type	10-Q
Accession Number	`0001468666-17-000040`
Period End Date	20171031
Filing Date	20171206
Fiscal Year	2017
Fiscal Period	Q3
XBRL Instance	scwx-20171103.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 60 Income Statement 56 Cash Flow Statement 60 Stockholders Equity 16 Comprehensive Income 12

Balance Sheet 60 line items

Line Item	Tag	Value	Unit	Period
Accounts receivable, allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$6.13M	USD	Point-in-time
Accounts receivable, allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$8.52M	USD	Point-in-time
Preferred stock, par value (usd per share)	`PreferredStockParOrStatedValuePerShare`	$0.01	USD	Point-in-time
Preferred stock, par value (usd per share)	`PreferredStockParOrStatedValuePerShare`	$0.01	USD	Point-in-time
Preferred stock, par value (usd per share)	`PreferredStockParOrStatedValuePerShare`	$0.01	USD	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	200.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$110.83M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$99.69M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$33.42M	USD	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	200.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$116.59M	USD	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	200.00M	shares	Point-in-time
Preferred Stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Accounts receivable, net of allowances of $8,522 and $6,132, respectively	`AccountsReceivableNetCurrent`	$113.55M	USD	Point-in-time
Accounts receivable, net of allowances of $8,522 and $6,132, respectively	`AccountsReceivableNetCurrent`	$136.65M	USD	Point-in-time
Preferred Stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Inventories, net	`InventoryNet`	$1.95M	USD	Point-in-time
Inventories, net	`InventoryNet`	$963.00K	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$51.95M	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$27.84M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$284.04M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$265.13M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$33.97M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$31.15M	USD	Point-in-time
Goodwill	`Goodwill`	$416.49M	USD	Point-in-time
Goodwill	`Goodwill`	$416.49M	USD	Point-in-time
Purchased intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$241.12M	USD	Point-in-time
Purchased intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$261.92M	USD	Point-in-time
Other non-current assets	`OtherAssetsNoncurrent`	$4.70M	USD	Point-in-time
Other non-current assets	`OtherAssetsNoncurrent`	$5.70M	USD	Point-in-time
Total assets	`Assets`	$961.41M	USD	Point-in-time
Total assets	`Assets`	$999.30M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$23.93M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$24.12M	USD	Point-in-time
Accrued and other	`AccruedLiabilitiesCurrent`	$59.70M	USD	Point-in-time
Accrued and other	`AccruedLiabilitiesCurrent`	$62.60M	USD	Point-in-time
Short-term deferred revenue	`DeferredRevenueCurrent`	$119.91M	USD	Point-in-time
Short-term deferred revenue	`DeferredRevenueCurrent`	$124.63M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$203.73M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$211.17M	USD	Point-in-time
Long-term deferred revenue	`DeferredRevenueNoncurrent`	$15.28M	USD	Point-in-time
Long-term deferred revenue	`DeferredRevenueNoncurrent`	$14.75M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$89.39M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$71.43M	USD	Point-in-time
Total liabilities	`Liabilities`	$307.88M	USD	Point-in-time
Total liabilities	`Liabilities`	$297.88M	USD	Point-in-time
Commitments and Contingencies (Note 5)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and Contingencies (Note 5)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Preferred stock - $0.01 par value: 200,000 shares authorized; 0 shares issued	`PreferredStockValue`	-	USD	Point-in-time
Preferred stock - $0.01 par value: 200,000 shares authorized; 0 shares issued	`PreferredStockValue`	-	USD	Point-in-time
Additional paid in capital	`AdditionalPaidInCapital`	$863.76M	USD	Point-in-time
Additional paid in capital	`AdditionalPaidInCapital`	$854.91M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-160.86M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-198.81M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-3.43M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-2.23M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$691.42M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$663.53M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$961.41M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$999.30M	USD	Point-in-time

Income Statement 56 line items

Line Item	Tag	Value	Unit	Period
Net revenue	`Revenues`	$310.55M	USD	3 Qtrs
Net revenue	`Revenues`	$107.11M	USD	1 Quarter
Net revenue	`Revenues`	$117.53M	USD	1 Quarter
Net revenue	`Revenues`	$347.25M	USD	3 Qtrs
Cost of revenue	`CostOfRevenue`	$156.39M	USD	3 Qtrs
Cost of revenue	`CostOfRevenue`	$53.64M	USD	1 Quarter
Cost of revenue	`CostOfRevenue`	$165.99M	USD	3 Qtrs
Cost of revenue	`CostOfRevenue`	$55.73M	USD	1 Quarter
Gross margin	`GrossProfit`	$53.47M	USD	1 Quarter
Gross margin	`GrossProfit`	$61.81M	USD	1 Quarter
Gross margin	`GrossProfit`	$181.26M	USD	3 Qtrs
Gross margin	`GrossProfit`	$154.16M	USD	3 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$58.67M	USD	3 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$16.96M	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$51.93M	USD	3 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$19.50M	USD	1 Quarter
Sales and marketing	`SellingAndMarketingExpense`	$91.81M	USD	3 Qtrs
Sales and marketing	`SellingAndMarketingExpense`	$37.30M	USD	1 Quarter
Sales and marketing	`SellingAndMarketingExpense`	$29.73M	USD	1 Quarter
Sales and marketing	`SellingAndMarketingExpense`	$112.08M	USD	3 Qtrs
General and administrative	`GeneralAndAdministrativeExpense`	$21.63M	USD	1 Quarter
General and administrative	`GeneralAndAdministrativeExpense`	$22.90M	USD	1 Quarter
General and administrative	`GeneralAndAdministrativeExpense`	$64.31M	USD	3 Qtrs
General and administrative	`GeneralAndAdministrativeExpense`	$67.44M	USD	3 Qtrs
Total operating expenses	`OperatingExpenses`	$79.69M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$238.20M	USD	3 Qtrs
Total operating expenses	`OperatingExpenses`	$208.05M	USD	3 Qtrs
Total operating expenses	`OperatingExpenses`	$68.31M	USD	1 Quarter
Operating loss	`OperatingIncomeLoss`	$-53.89M	USD	3 Qtrs
Operating loss	`OperatingIncomeLoss`	$-14.84M	USD	1 Quarter
Operating loss	`OperatingIncomeLoss`	$-17.89M	USD	1 Quarter
Operating loss	`OperatingIncomeLoss`	$-56.94M	USD	3 Qtrs
Interest and other, net	`NonoperatingIncomeExpense`	$1.11M	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$-953.00K	USD	3 Qtrs
Interest and other, net	`NonoperatingIncomeExpense`	$121.00K	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$2.32M	USD	3 Qtrs
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-13.74M	USD	1 Quarter
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-51.57M	USD	3 Qtrs
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-17.76M	USD	1 Quarter
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-57.89M	USD	3 Qtrs
Income tax benefit	`IncomeTaxExpenseBenefit`	$-6.02M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-20.17M	USD	3 Qtrs
Income tax benefit	`IncomeTaxExpenseBenefit`	$-6.16M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-19.94M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-7.72M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-11.60M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-31.40M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-37.95M	USD	3 Qtrs
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.41	USD	3 Qtrs
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.10	USD	1 Quarter
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.14	USD	1 Quarter
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.47	USD	3 Qtrs
Weighted average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.36M	shares	1 Quarter
Weighted average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	76.78M	shares	3 Qtrs
Weighted average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.25M	shares	3 Qtrs
Weighted average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.01M	shares	1 Quarter

Cash Flow Statement 60 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-7.72M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-11.60M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-31.40M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-37.95M	USD	3 Qtrs
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$29.25M	USD	3 Qtrs
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$31.32M	USD	3 Qtrs
Change in fair value of convertible notes	`FairValueAdjustmentOfWarrants`	-	USD	3 Qtrs
Change in fair value of convertible notes	`FairValueAdjustmentOfWarrants`	$132.00K	USD	3 Qtrs
Stock-based compensation expense	`ShareBasedCompensation`	$6.39M	USD	3 Qtrs
Stock-based compensation expense	`ShareBasedCompensation`	$10.09M	USD	3 Qtrs
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	`ForeignCurrencyTransactionGainLossBeforeTax`	$-1.37M	USD	3 Qtrs
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	`ForeignCurrencyTransactionGainLossBeforeTax`	$2.18M	USD	3 Qtrs
Income tax benefit	`DeferredIncomeTaxExpenseBenefit`	$-20.17M	USD	3 Qtrs
Income tax benefit	`DeferredIncomeTaxExpenseBenefit`	$-19.06M	USD	3 Qtrs
Provision for doubtful accounts	`ProvisionForDoubtfulAccounts`	$3.52M	USD	3 Qtrs
Provision for doubtful accounts	`ProvisionForDoubtfulAccounts`	$1.99M	USD	3 Qtrs
Excess tax benefit from share-based payment	`ExcessTaxBenefitFromShareBasedCompensationOperatingActivities`	$221.00K	USD	3 Qtrs
Excess tax benefit from share-based payment	`ExcessTaxBenefitFromShareBasedCompensationOperatingActivities`	-	USD	3 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$27.56M	USD	3 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$-6.15M	USD	3 Qtrs
Due to / from parent	`IncreaseDecreaseInDueFromRelatedPartiesCurrent`	$-9.41M	USD	3 Qtrs
Due to / from parent	`IncreaseDecreaseInDueFromRelatedPartiesCurrent`	$20.03M	USD	3 Qtrs
Inventories	`IncreaseDecreaseInInventories`	$-984.00K	USD	3 Qtrs
Inventories	`IncreaseDecreaseInInventories`	$-829.00K	USD	3 Qtrs
Other assets	`IncreaseDecreaseInOtherNoncurrentAssets`	$-1.53M	USD	3 Qtrs
Other assets	`IncreaseDecreaseInOtherNoncurrentAssets`	$-24.29M	USD	3 Qtrs
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$-189.00K	USD	3 Qtrs
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$1.10M	USD	3 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$5.25M	USD	3 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$5.88M	USD	3 Qtrs
Accrued and other liabilities	`IncreaseDecreaseInAccruedLiabilities`	$-4.69M	USD	3 Qtrs
Accrued and other liabilities	`IncreaseDecreaseInAccruedLiabilities`	$2.08M	USD	3 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-18.67M	USD	3 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-3.21M	USD	3 Qtrs
Capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipment`	$13.29M	USD	3 Qtrs
Capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipment`	$11.68M	USD	3 Qtrs
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-13.29M	USD	3 Qtrs
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-11.68M	USD	3 Qtrs
Proceeds from initial public offering, net	`ProceedsFromIssuanceInitialPublicOffering`	$99.60M	USD	3 Qtrs
Proceeds from initial public offering, net	`ProceedsFromIssuanceInitialPublicOffering`	-	USD	3 Qtrs
Excess tax benefit from share-based payment	`ExcessTaxBenefitFromShareBasedCompensationFinancingActivities`	$221.00K	USD	3 Qtrs
Excess tax benefit from share-based payment	`ExcessTaxBenefitFromShareBasedCompensationFinancingActivities`	-	USD	3 Qtrs
Capital contribution from parent, net	`ProceedsFromContributionsFromParent`	$9.55M	USD	3 Qtrs
Capital contribution from parent, net	`ProceedsFromContributionsFromParent`	-	USD	3 Qtrs
Principal payments on financing arrangement with Dell Financial Services	`ProceedsFromRepaymentsOfRelatedPartyDebt`	$-800.00K	USD	3 Qtrs
Principal payments on financing arrangement with Dell Financial Services	`ProceedsFromRepaymentsOfRelatedPartyDebt`	-	USD	3 Qtrs
Taxes paid on vested restricted shares	`PaymentOfFinancingAndStockIssuanceCosts`	$1.22M	USD	3 Qtrs
Taxes paid on vested restricted shares	`PaymentOfFinancingAndStockIssuanceCosts`	-	USD	3 Qtrs
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-2.02M	USD	3 Qtrs
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$109.37M	USD	3 Qtrs
Net (decrease) increase in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$77.41M	USD	3 Qtrs
Net (decrease) increase in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$-16.91M	USD	3 Qtrs
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$110.83M	USD	Point-in-time
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$99.69M	USD	Point-in-time
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$33.42M	USD	Point-in-time
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$116.59M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$110.83M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$99.69M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$33.42M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$116.59M	USD	Point-in-time

Stockholders Equity 16 line items

Line Item	Tag	Value	Unit	Period
Balances, February 3, 2017	`StockholdersEquity`	$691.42M	USD	Point-in-time
Balances, February 3, 2017	`StockholdersEquity`	$663.53M	USD	Point-in-time
Net loss	`NetIncomeLoss`	$-7.72M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-11.60M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-31.40M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-37.95M	USD	3 Qtrs
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-251.00K	USD	1 Quarter
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$1.20M	USD	3 Qtrs
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.21M	USD	1 Quarter
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-2.47M	USD	3 Qtrs
Vesting of restricted stock units	`StockIssuedDuringPeriodValueConversionOfConvertibleSecuritiesNetOfAdjustments`	-	USD	3 Qtrs
Grant of restricted stock awards	`StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures`	-	USD	3 Qtrs
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationAndExerciseOfStockOptions`	$-1.24M	USD	3 Qtrs
Stock-based compensation	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$10.09M	USD	3 Qtrs
Balances, November 3, 2017	`StockholdersEquity`	$691.42M	USD	Point-in-time
Balances, November 3, 2017	`StockholdersEquity`	$663.53M	USD	Point-in-time

Comprehensive Income 12 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-7.72M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-11.60M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-31.40M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-37.95M	USD	3 Qtrs
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-251.00K	USD	1 Quarter
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$1.20M	USD	3 Qtrs
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.21M	USD	1 Quarter
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-2.47M	USD	3 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-11.85M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-33.86M	USD	3 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-36.75M	USD	3 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-8.93M	USD	1 Quarter

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.