10-Q Filing

SECUREWORKS CORP CIK: 1468666 Q1 2018

Filing Information

Form Type	10-Q
Accession Number	`0001468666-18-000023`
Period End Date	20180430
Filing Date	20180606
Fiscal Year	2018
Fiscal Period	Q1
XBRL Instance	scwx-20180504.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 58 Income Statement 28 Cash Flow Statement 50 Stockholders Equity 12 Comprehensive Income 6

Balance Sheet 58 line items

Line Item	Tag	Value	Unit	Period
Accounts receivable, allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$8.25M	USD	Point-in-time
Accounts receivable, allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$8.59M	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
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$91.57M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$101.54M	USD	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 authorized (in shares)	`PreferredStockSharesAuthorized`	200.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$77.30M	USD	Point-in-time
Accounts receivable, net of allowances of $8,589 and $8,246, respectively	`AccountsReceivableNetCurrent`	$157.76M	USD	Point-in-time
Preferred Stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Preferred Stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Accounts receivable, net of allowances of $8,589 and $8,246, respectively	`AccountsReceivableNetCurrent`	$146.82M	USD	Point-in-time
Inventories, net	`InventoryNet`	$670.00K	USD	Point-in-time
Inventories, net	`InventoryNet`	$1.03M	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$40.55M	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$42.12M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$266.92M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$300.88M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$33.46M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$32.55M	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`	$227.25M	USD	Point-in-time
Purchased intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$234.18M	USD	Point-in-time
Other non-current assets	`OtherAssetsNoncurrent`	$75.98M	USD	Point-in-time
Other non-current assets	`OtherAssetsNoncurrent`	$72.07M	USD	Point-in-time
Total assets	`Assets`	$1.06B	USD	Point-in-time
Total assets	`Assets`	$1.02B	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$19.46M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$23.27M	USD	Point-in-time
Accrued and other	`AccruedLiabilitiesCurrent`	$53.14M	USD	Point-in-time
Accrued and other	`AccruedLiabilitiesCurrent`	$81.62M	USD	Point-in-time
Short-term deferred revenue	`DeferredRevenueCurrent`	$146.70M	USD	Point-in-time
Short-term deferred revenue	`DeferredRevenueCurrent`	$137.70M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$219.30M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$242.59M	USD	Point-in-time
Long-term deferred revenue	`DeferredRevenueNoncurrent`	$14.93M	USD	Point-in-time
Long-term deferred revenue	`DeferredRevenueNoncurrent`	$14.95M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$68.45M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$66.54M	USD	Point-in-time
Total liabilities	`Liabilities`	$300.77M	USD	Point-in-time
Total liabilities	`Liabilities`	$325.99M	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`	$870.12M	USD	Point-in-time
Additional paid in capital	`AdditionalPaidInCapital`	$867.41M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-137.16M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-150.98M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$30.00K	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-1.54M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$731.09M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$718.42M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$1.06B	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$1.02B	USD	Point-in-time

Income Statement 28 line items

Line Item	Tag	Value	Unit	Period
Net revenue	`Revenues`	$113.68M	USD	1 Quarter
Net revenue	`Revenues`	$126.16M	USD	1 Quarter
Cost of revenue	`CostOfRevenue`	$53.61M	USD	1 Quarter
Cost of revenue	`CostOfRevenue`	$60.53M	USD	1 Quarter
Gross margin	`GrossProfit`	$65.63M	USD	1 Quarter
Gross margin	`GrossProfit`	$60.06M	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$19.48M	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$22.35M	USD	1 Quarter
Sales and marketing	`SellingAndMarketingExpense`	$35.67M	USD	1 Quarter
Sales and marketing	`SellingAndMarketingExpense`	$36.18M	USD	1 Quarter
General and administrative	`GeneralAndAdministrativeExpense`	$23.40M	USD	1 Quarter
General and administrative	`GeneralAndAdministrativeExpense`	$25.20M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$83.22M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$79.06M	USD	1 Quarter
Operating loss	`OperatingIncomeLoss`	$-17.59M	USD	1 Quarter
Operating loss	`OperatingIncomeLoss`	$-19.00M	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$505.00K	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$-649.00K	USD	1 Quarter
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-17.09M	USD	1 Quarter
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-19.64M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-6.37M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-3.27M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-13.28M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-13.82M	USD	1 Quarter
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.17	USD	1 Quarter
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.17	USD	1 Quarter
Weighted average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.06M	shares	1 Quarter
Weighted average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.52M	shares	1 Quarter

Cash Flow Statement 50 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-13.28M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-13.82M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$10.26M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$10.29M	USD	1 Quarter
Stock-based compensation expense	`ShareBasedCompensation`	$3.63M	USD	1 Quarter
Stock-based compensation expense	`ShareBasedCompensation`	$4.73M	USD	1 Quarter
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	`ForeignCurrencyTransactionGainLossBeforeTax`	$-649.00K	USD	1 Quarter
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	`ForeignCurrencyTransactionGainLossBeforeTax`	$377.00K	USD	1 Quarter
Income tax benefit	`DeferredIncomeTaxExpenseBenefit`	$-3.27M	USD	1 Quarter
Income tax benefit	`DeferredIncomeTaxExpenseBenefit`	$-6.37M	USD	1 Quarter
Provision for doubtful accounts	`ProvisionForDoubtfulAccounts`	$889.00K	USD	1 Quarter
Provision for doubtful accounts	`ProvisionForDoubtfulAccounts`	$1.49M	USD	1 Quarter
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$10.49M	USD	1 Quarter
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$-9.18M	USD	1 Quarter
Due to / from parent	`IncreaseDecreaseInDueFromRelatedPartiesCurrent`	$-7.51M	USD	1 Quarter
Due to / from parent	`IncreaseDecreaseInDueFromRelatedPartiesCurrent`	$-1.10M	USD	1 Quarter
Inventories	`IncreaseDecreaseInInventories`	$-475.00K	USD	1 Quarter
Inventories	`IncreaseDecreaseInInventories`	$-360.00K	USD	1 Quarter
Other assets	`IncreaseDecreaseInOtherNoncurrentAssets`	$1.12M	USD	1 Quarter
Other assets	`IncreaseDecreaseInOtherNoncurrentAssets`	$2.35M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$-3.34M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$1.03M	USD	1 Quarter
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$8.67M	USD	1 Quarter
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$8.15M	USD	1 Quarter
Accrued and other liabilities	`IncreaseDecreaseInAccruedLiabilities`	$-31.07M	USD	1 Quarter
Accrued and other liabilities	`IncreaseDecreaseInAccruedLiabilities`	$-20.98M	USD	1 Quarter
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-19.66M	USD	1 Quarter
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-18.40M	USD	1 Quarter
Capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipment`	$2.22M	USD	1 Quarter
Capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipment`	$3.35M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-3.35M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-2.22M	USD	1 Quarter
Principal payments on financing arrangement with Dell Financial Services	`ProceedsFromRepaymentsOfRelatedPartyDebt`	$-1.10M	USD	1 Quarter
Principal payments on financing arrangement with Dell Financial Services	`ProceedsFromRepaymentsOfRelatedPartyDebt`	$-800.00K	USD	1 Quarter
Taxes paid on vested restricted shares	`PaymentOfFinancingAndStockIssuanceCosts`	$2.01M	USD	1 Quarter
Taxes paid on vested restricted shares	`PaymentOfFinancingAndStockIssuanceCosts`	$1.22M	USD	1 Quarter
Payments on financed capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipmentFinancingActivities`	$500.00K	USD	1 Quarter
Payments on financed capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipmentFinancingActivities`	-	USD	1 Quarter
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-3.62M	USD	1 Quarter
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-2.02M	USD	1 Quarter
Net (decrease) increase in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$-24.24M	USD	1 Quarter
Net (decrease) increase in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$-25.03M	USD	1 Quarter
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$91.57M	USD	Point-in-time
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$101.54M	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 beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$77.30M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$91.57M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$101.54M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$116.59M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$77.30M	USD	Point-in-time

Stockholders Equity 12 line items

Line Item	Tag	Value	Unit	Period
Balances, February 2, 2018	`StockholdersEquity`	$731.09M	USD	Point-in-time
Balances, February 2, 2018	`StockholdersEquity`	$718.42M	USD	Point-in-time
Net loss	`NetIncomeLoss`	$-13.28M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-13.82M	USD	1 Quarter
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.57M	USD	1 Quarter
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$735.00K	USD	1 Quarter
Vesting of restricted stock units	`StockIssuedDuringPeriodValueConversionOfConvertibleSecuritiesNetOfAdjustments`	-	USD	1 Quarter
Grant of restricted stock awards	`StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures`	-	USD	1 Quarter
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationAndExerciseOfStockOptions`	$-2.01M	USD	1 Quarter
Stock-based compensation	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$4.73M	USD	1 Quarter
Balances, May 4, 2018	`StockholdersEquity`	$731.09M	USD	Point-in-time
Balances, May 4, 2018	`StockholdersEquity`	$718.42M	USD	Point-in-time

Comprehensive Income 6 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-13.28M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-13.82M	USD	1 Quarter
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.57M	USD	1 Quarter
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$735.00K	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-15.39M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-12.54M	USD	1 Quarter

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