FireEye -9.5% AH; EPS guidance below consensus, acquisition announced

FireEye (FEYE) expects Q2 revenue of $89M-$91M and EPS of -$0.58 to -$0.63 vs. a consensus of $87.9M and -$0.51. Full-year guidance is for revenue of $405M-$415M and EPS of -$2.10 to -$2.30 vs. a consensus of $407.1M and -$2.04.

FireEye's breakneck spending pace is responsible for its EPS outlook: Sales/marketing spend is expected to equal 82%-85% of 2014 revenue, and R&D spend 40%-43%; the latter range is up from a prior 36%-39%.

A bright spot: Q1 billings totaled $99.2M, well above guidance of $84M-$88M. That, in turn, contributed to a $25.2M Q/Q increase in FireEye's deferred revenue balance to $212.7M. Full-year billings guidance has been hiked by $10M to $550M-$570M.

Separately, FireEye has announced it's buying nPulse Technologies, a network forsenics hardware/software provider, for $60M in cash + $10M in stock. FireEye asserts the integration of nPulse's products with recently-acquired Mandiant's endpoint security offerings will yield the first enterprise forsenics solution offering a unified view of network and endpoint activity.

Shares are now down 65% from a March high of $97.35.

Q1 results, PR

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Comments (6)
  • D-struction
    , contributor
    Comments (165) | Send Message
    6 May 2014, 06:22 PM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
    Wow. I was waiting for a pullback from the $90s, but this has been a meltdown. Glad I was patient.
    6 May 2014, 06:33 PM Reply Like
  • C,Ican
    , contributor
    Comments (8) | Send Message
    Better put a FIRE under your stock price, QUICK
    6 May 2014, 07:08 PM Reply Like
  • sidgreen60
    , contributor
    Comments (21) | Send Message
    You really have to like this as an entry point. With this purchase it can now differentiate itself from other security vendors. Time to nibble down here.
    7 May 2014, 09:01 AM Reply Like
  • Njuma
    , contributor
    Comment (1) | Send Message
    When is FEYE lockup that coming is it on May 30,2014. Please I need to know.


    23 May 2014, 10:48 AM Reply Like
  • D-struction
    , contributor
    Comments (165) | Send Message
    The lock up is old news, Njuma. Buy rating with $40 PT.
    23 May 2014, 02:04 PM Reply Like
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