Secureworks, the Top 100 MSSP, delivered mixed quarterly financial results on Wednesday, and vowed to improve managed security services retention rates in the current fiscal year.
The latest revenue and profit figures follow recent rumors that parent Dell Technologies may attempt to sell Secureworks.
For its Q4 of fiscal 2019, Secureworks says:
Overall, fourth quarter revenue was below Secureworks' expectations primarily as a result of one customers' delayed migration to a new solution, according to CFO Wayne Jackson. That customer is now substantially ramped under terms of the new contract, he added.
Secureworks' stock fell about 8 percent on the earnings report. Jackson, meanwhile, plans to step down from the business. The company is seeking a successor CFO, and Jackson says he will stick around to assist the transition.
Managed Security Service Churn Concerns
Another key area of concern involves service retention rates. According to Jackson:
Among the new offerings Jackson pointed to:
Secureworks: Managed Security Services Reality Check
The earnings results provide a healthy reminder: Although the managed security services market is growing rapidly, succeeding in the market and driving double- or triple-digit percentage revenue growth figures isn't easy.
Seeking to drive more growth, Secureworks has been beta testing a new threat protection and response app atop a new application framework since December 2018. The system has the ability to discover previously undetected threats, automate investigation and scale remediation, according to CEO Michael Cote.
During the company's earnings call, a Wall Street analyst asked Secureworks to comment about rumors that Dell may want to sell the business. Secureworks did not directly answer the question, and instead focused on the ongoing working relationship between the two companies.
