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      SecureWorks (SCWX) Stock Jumps After Earnings Report

      By Fahim Awan

      Published on

      June 6, 2024

      6:09 PM UTC

      SecureWorks (SCWX) Stock Jumps After Earnings Report

      SecureWorks Corp. (NASDAQ: SCWX) shares are experiencing a notable surge on the US stock market following the release of recent earnings report. As of the last check during current-market session, SCWX stock was trading at $6.82, representing a 16.58% increase.

      Financial Performance And Strategic Shifts

      For the first quarter of fiscal 2025, SecureWorks (SCWX) reported total revenue of $85.7 million, a decrease from the $94.4 million recorded in the same period of fiscal 2024. This decline in revenue reflects the company’s strategic decision to phase out its legacy Other Managed Security Services (MSS) business.

      Despite this, the quarter was marked by significant progress, including the launch of new product capabilities aimed at mitigating high-risk attack vectors. Furthermore, SecureWorks expanded its Global Partner program by adding two prominent partners in Japan.

      Innovation And Expansion With Taegis

      Over time, the Taegis platform from SecureWorks has become the go-to option for customers looking to reduce costs, lower risks, and improve their IT infrastructure. With its open platform strategy for Extended Detection and Response (XDR), Taegis is well-known for setting the standard for international security results in the sector.

      This innovative platform has not only benefitted SecureWorks’ partner community but has also driven business growth. The continuous expansion of the Taegis gross margin underscores SecureWorks’ commitment to operational efficiency, driven by investments in artificial intelligence and distinctive cloud architecture.

      These efforts have consistently delivered robust security outcomes for their customers. SecureWorks introduced Taegis Network Detection and Response (NDR), a fully managed cloud-based offering that provides on-premises protection. This service utilizes artificial intelligence to identify hidden threats and integrates threat prevention, detection, and response to prevent malicious activities within networks.

      Additionally, SecureWorks has enhanced the integration between Taegis XDR and Taegis Vulnerability Detection and Response (VDR), allowing customers and partners to view known vulnerabilities in the context of threat data, thereby expediting investigation and remediation plans.

      Softbank Corp., a major international telecommunications corporation, has joined SecureWorks’ Global Managed Security Service Provider (MSSP) Partner Program, which has been greatly enlarged. Through this cooperation, Taegis XDR platform-powered Managed Detection and Response (MDR) services would be made available.

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