10-Q Filing

SECUREWORKS CORP CIK: 1468666 Q2 2018

Filing Information

Form Type	10-Q
Accession Number	`0001468666-18-000036`
Period End Date	20180731
Filing Date	20180905
Fiscal Year	2018
Fiscal Period	Q2
XBRL Instance	scwx-20180803.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 58 Income Statement 56 Cash Flow Statement 52 Stockholders Equity 16 Comprehensive Income 12

Balance Sheet 58 line items

Line Item	Tag	Value	Unit	Period
Accounts receivable, allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$7.39M	USD	Point-in-time
Accounts receivable, allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$8.25M	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`	$97.78M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$103.32M	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
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$101.54M	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 $7,388 and $8,246, respectively	`AccountsReceivableNetCurrent`	$133.34M	USD	Point-in-time
Accounts receivable, net of allowances of $7,388 and $8,246, respectively	`AccountsReceivableNetCurrent`	$157.76M	USD	Point-in-time
Preferred Stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Inventories, net	`InventoryNet`	$623.00K	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`	$40.81M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$278.10M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$300.88M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$32.61M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$33.46M	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`	$234.18M	USD	Point-in-time
Purchased intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$220.32M	USD	Point-in-time
Other non-current assets	`OtherAssetsNoncurrent`	$79.64M	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`	$1.03B	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$21.42M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$23.27M	USD	Point-in-time
Accrued and other	`AccruedLiabilitiesCurrent`	$65.32M	USD	Point-in-time
Accrued and other	`AccruedLiabilitiesCurrent`	$81.62M	USD	Point-in-time
Short-term deferred revenue	`ContractWithCustomerLiabilityCurrent`	$137.70M	USD	Point-in-time
Short-term deferred revenue	`ContractWithCustomerLiabilityCurrent`	$151.83M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$242.59M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$238.57M	USD	Point-in-time
Long-term deferred revenue	`ContractWithCustomerLiabilityNoncurrent`	$13.44M	USD	Point-in-time
Long-term deferred revenue	`ContractWithCustomerLiabilityNoncurrent`	$14.95M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$62.88M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$68.45M	USD	Point-in-time
Total liabilities	`Liabilities`	$314.88M	USD	Point-in-time
Total liabilities	`Liabilities`	$325.99M	USD	Point-in-time
Commitments and contingencies (Note 6)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies (Note 6)	`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`	$867.41M	USD	Point-in-time
Additional paid in capital	`AdditionalPaidInCapital`	$874.91M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-137.16M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-160.75M	USD	Point-in-time
Accumulated other comprehensive (loss) income	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-2.71M	USD	Point-in-time
Accumulated other comprehensive (loss) income	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$30.00K	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$712.27M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$731.09M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$1.06B	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$1.03B	USD	Point-in-time

Income Statement 56 line items

Line Item	Tag	Value	Unit	Period
Net revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$229.92M	USD	2 Qtrs
Net revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$254.94M	USD	2 Qtrs
Net revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$128.78M	USD	1 Quarter
Net revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$116.24M	USD	1 Quarter
Cost of revenue	`CostOfGoodsAndServicesSold`	$109.52M	USD	2 Qtrs
Cost of revenue	`CostOfGoodsAndServicesSold`	$55.91M	USD	1 Quarter
Cost of revenue	`CostOfGoodsAndServicesSold`	$123.08M	USD	2 Qtrs
Cost of revenue	`CostOfGoodsAndServicesSold`	$62.55M	USD	1 Quarter
Gross margin	`GrossProfit`	$60.33M	USD	1 Quarter
Gross margin	`GrossProfit`	$131.86M	USD	2 Qtrs
Gross margin	`GrossProfit`	$66.23M	USD	1 Quarter
Gross margin	`GrossProfit`	$120.40M	USD	2 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$22.45M	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$19.69M	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$39.17M	USD	2 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$44.81M	USD	2 Qtrs
Sales and marketing	`SellingAndMarketingExpense`	$71.19M	USD	2 Qtrs
Sales and marketing	`SellingAndMarketingExpense`	$35.43M	USD	1 Quarter
Sales and marketing	`SellingAndMarketingExpense`	$71.61M	USD	2 Qtrs
Sales and marketing	`SellingAndMarketingExpense`	$35.52M	USD	1 Quarter
General and administrative	`GeneralAndAdministrativeExpense`	$21.14M	USD	1 Quarter
General and administrative	`GeneralAndAdministrativeExpense`	$44.54M	USD	2 Qtrs
General and administrative	`GeneralAndAdministrativeExpense`	$47.62M	USD	2 Qtrs
General and administrative	`GeneralAndAdministrativeExpense`	$22.42M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$76.26M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$80.39M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$155.32M	USD	2 Qtrs
Total operating expenses	`OperatingExpenses`	$163.61M	USD	2 Qtrs
Operating loss	`OperatingIncomeLoss`	$-31.75M	USD	2 Qtrs
Operating loss	`OperatingIncomeLoss`	$-34.93M	USD	2 Qtrs
Operating loss	`OperatingIncomeLoss`	$-14.16M	USD	1 Quarter
Operating loss	`OperatingIncomeLoss`	$-15.93M	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$1.00M	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$-420.00K	USD	1 Quarter
Interest and other, net	`NonoperatingIncomeExpense`	$-1.07M	USD	2 Qtrs
Interest and other, net	`NonoperatingIncomeExpense`	$1.51M	USD	2 Qtrs
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-16.35M	USD	1 Quarter
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-30.25M	USD	2 Qtrs
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-36.00M	USD	2 Qtrs
Loss before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-13.16M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-3.39M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-6.66M	USD	2 Qtrs
Income tax benefit	`IncomeTaxExpenseBenefit`	$-6.08M	USD	1 Quarter
Income tax benefit	`IncomeTaxExpenseBenefit`	$-12.45M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-23.55M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-10.27M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-9.77M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-23.59M	USD	2 Qtrs
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.13	USD	1 Quarter
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.29	USD	2 Qtrs
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.12	USD	1 Quarter
Net loss per common share, basic and diluted (usd per share)	`IncomeLossFromContinuingOperationsPerBasicAndDilutedShare`	$-0.29	USD	2 Qtrs
Weighted-average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.68M	shares	2 Qtrs
Weighted-average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.84M	shares	1 Quarter
Weighted-average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.20M	shares	2 Qtrs
Weighted-average common shares outstanding, basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	80.35M	shares	1 Quarter

Cash Flow Statement 52 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-23.55M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-10.27M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-9.77M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-23.59M	USD	2 Qtrs
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$20.67M	USD	2 Qtrs
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$20.51M	USD	2 Qtrs
Stock-based compensation expense	`ShareBasedCompensation`	$7.16M	USD	2 Qtrs
Stock-based compensation expense	`ShareBasedCompensation`	$9.64M	USD	2 Qtrs
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	`ForeignCurrencyTransactionGainLossBeforeTax`	$-1.45M	USD	2 Qtrs
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	`ForeignCurrencyTransactionGainLossBeforeTax`	$1.27M	USD	2 Qtrs
Income tax benefit	`DeferredIncomeTaxExpenseBenefit`	$-12.45M	USD	2 Qtrs
Income tax benefit	`DeferredIncomeTaxExpenseBenefit`	$-6.66M	USD	2 Qtrs
Provision for doubtful accounts	`ProvisionForDoubtfulAccounts`	$1.57M	USD	2 Qtrs
Provision for doubtful accounts	`ProvisionForDoubtfulAccounts`	$2.59M	USD	2 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$-22.54M	USD	2 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$12.49M	USD	2 Qtrs
Due to / from parent	`IncreaseDecreaseInDueFromRelatedPartiesCurrent`	$1.33M	USD	2 Qtrs
Due to / from parent	`IncreaseDecreaseInDueFromRelatedPartiesCurrent`	$-7.65M	USD	2 Qtrs
Inventories	`IncreaseDecreaseInInventories`	$-778.00K	USD	2 Qtrs
Inventories	`IncreaseDecreaseInInventories`	$-407.00K	USD	2 Qtrs
Other assets	`IncreaseDecreaseInOtherNoncurrentAssets`	$4.01M	USD	2 Qtrs
Other assets	`IncreaseDecreaseInOtherNoncurrentAssets`	$5.16M	USD	2 Qtrs
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$428.00K	USD	2 Qtrs
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$-1.39M	USD	2 Qtrs
Deferred revenue	`IncreaseDecreaseInContractWithCustomerLiability`	$12.24M	USD	2 Qtrs
Deferred revenue	`IncreaseDecreaseInContractWithCustomerLiability`	$13.62M	USD	2 Qtrs
Accrued and other liabilities	`IncreaseDecreaseInAccruedLiabilities`	$-16.62M	USD	2 Qtrs
Accrued and other liabilities	`IncreaseDecreaseInAccruedLiabilities`	$-10.25M	USD	2 Qtrs
Net cash provided by (used in) operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-8.41M	USD	2 Qtrs
Net cash provided by (used in) operating activities	`NetCashProvidedByUsedInOperatingActivities`	$10.89M	USD	2 Qtrs
Capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipment`	$8.38M	USD	2 Qtrs
Capital expenditures	`PaymentsToAcquirePropertyPlantAndEquipment`	$5.37M	USD	2 Qtrs
Net cash provided by (used in) investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-5.37M	USD	2 Qtrs
Net cash provided by (used in) investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-8.38M	USD	2 Qtrs
Principal payments on financing arrangement with Dell Financial Services	`RepaymentsOfRelatedPartyDebt`	$800.00K	USD	2 Qtrs
Principal payments on financing arrangement with Dell Financial Services	`RepaymentsOfRelatedPartyDebt`	$1.10M	USD	2 Qtrs
Taxes paid on vested restricted shares	`PaymentOfFinancingAndStockIssuanceCosts`	$2.14M	USD	2 Qtrs
Taxes paid on vested restricted shares	`PaymentOfFinancingAndStockIssuanceCosts`	$1.22M	USD	2 Qtrs
Other financing activities	`ProceedsFromPaymentsForOtherFinancingActivities`	$-500.00K	USD	2 Qtrs
Other financing activities	`ProceedsFromPaymentsForOtherFinancingActivities`	-	USD	2 Qtrs
Net cash provided by (used in) financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-3.74M	USD	2 Qtrs
Net cash provided by (used in) financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-2.02M	USD	2 Qtrs
Net increase (decrease) in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$1.78M	USD	2 Qtrs
Net increase (decrease) in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$-18.82M	USD	2 Qtrs
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$97.78M	USD	Point-in-time
Cash and cash equivalents at beginning of the period	`CashAndCashEquivalentsAtCarryingValue`	$103.32M	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`	$101.54M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$97.78M	USD	Point-in-time
Cash and cash equivalents at end of the period	`CashAndCashEquivalentsAtCarryingValue`	$103.32M	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`	$101.54M	USD	Point-in-time

Stockholders Equity 16 line items

Line Item	Tag	Value	Unit	Period
Balances, February 2, 2018	`StockholdersEquity`	$712.27M	USD	Point-in-time
Balances, February 2, 2018	`StockholdersEquity`	$731.09M	USD	Point-in-time
Net loss	`NetIncomeLoss`	$-23.55M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-10.27M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-9.77M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-23.59M	USD	2 Qtrs
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$784.00K	USD	1 Quarter
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$1.52M	USD	2 Qtrs
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.17M	USD	1 Quarter
Other comprehensive loss	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-2.73M	USD	2 Qtrs
Vesting of restricted stock units	`StockIssuedDuringPeriodValueConversionOfConvertibleSecuritiesNetOfAdjustments`	-	USD	2 Qtrs
Grant of restricted stock awards	`StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures`	-	USD	2 Qtrs
Common stock withheld as payment for withholding taxes upon the vesting of restricted shares	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationAndExerciseOfStockOptions`	$-2.14M	USD	2 Qtrs
Stock-based compensation	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$9.64M	USD	2 Qtrs
Balances, August 3, 2018	`StockholdersEquity`	$712.27M	USD	Point-in-time
Balances, August 3, 2018	`StockholdersEquity`	$731.09M	USD	Point-in-time

Comprehensive Income 12 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-23.55M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-10.27M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-9.77M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-23.59M	USD	2 Qtrs
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$784.00K	USD	1 Quarter
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$1.52M	USD	2 Qtrs
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.17M	USD	1 Quarter
Foreign currency translation adjustments, net of tax	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-2.73M	USD	2 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-22.03M	USD	2 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-9.49M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-10.93M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-26.32M	USD	2 Qtrs

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