Wed, Dec 4, 9:33 PM (215 days ago)
SecureWorks Corp. (SCWX) reported a net revenue decline of 7.4% to $82.7 million for Q3 FY2025, driven by a 5.1% drop in subscription revenue and a 20% decline in professional services. The shift away from non-strategic Managed Security Services contributed significantly to these figures. Despite a reduction in operating expenses by 5.7%, the company recorded an operating loss of $22.2 million, impacted by merger-related costs. Gross profit increased slightly, reflecting improved margins from the Taegis subscription solutions, which now represent the majority of revenue. Cash and equivalents fell to $53.1 million, with no amounts drawn from a $50 million revolving credit facility. The company is undergoing a merger with Sophos Inc., expected to close in early 2025, which may further influence its operational strategy and financial health. The completion of the merger is contingent upon various conditions, including regulatory approvals. Future performance remains uncertain amid market volatility and strategic repositioning efforts.