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FireEye, Inc. (FEYE)

  • Thu, May 28, 9:33 AM
    • FireEye (FEYE - unchanged) has upped the size of its 2035 convertible debt offering by $200M to $800M. Initial purchasers will have $120M worth of overallotment options.
    • $400M of the notes (the Series A tranche) will sport an interest rate of 1%, and the other $400M (the Series B tranche) a rate of 1.625%. Both tranches will carry a conversion price of $60.76/share (35% above current levels).
    • Shares fell fractionally yesterday after FireEye first announced the offering on Tuesday afternoon, sitting out a market rally.
  • Tue, May 26, 4:31 PM
    • FireEye (NASDAQ:FEYE) plans to sell $600M worth of convertible senior notes due 2035 in two tranches. Initial purchasers are expected to have $90M worth of overallotment options. Pricing hasn't been set yet.
    • Proceeds will be use for "general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions." The company adds it currently has "no commitments with respect to any such acquisitions or investments."
    • FireEye had $398M in cash/short-term investments at the end of Q1, and no debt. Thanks to aggressive spending, the company's free cash flow was -$199M in 2014.
    • FEYE -1.5% AH to $44.49.
  • Fri, May 22, 10:38 AM
    • While appearing on CNBC  to discuss her company's FQ2 report, HP CEO Meg Whitman gave FireEye (NASDAQ:FEYE) a shout-out. HP and FireEye are just a month removed from partnering to offer "a comprehensive suite of security remediation services underpinned by FireEye's advanced threat detection, intelligence, methodologies and incident response expertise."
    • Meanwhile, DeWalt appeared yesterday evening on Jim Cramer's Mad Money to once more talk up FireEye's ability to benefit from corporate/government cybersecurity spending following a slew of well-publicized hacking incidents.
    • Though still well below its early-2014 highs, FireEye is less than $1.50 away from a 52-week high of $46.44.
  • Thu, May 14, 5:51 PM
    • A day after John Chambers shot down a vague rumor about a Cisco bid for FireEye (NASDAQ:FEYE), Re/code reports FireEye's management is "unwilling to entertain buyout offers before it reaches $1 billion in annual revenue."
    • The company has a decent chance of reaching that level by 2017: FireEye's 2015 revenue consensus is at $629.3M (+48% Y/Y), and its 2016 consensus at $865.9M (+38%). Billings have a good chance of reaching $1B by 2016, given a 2015 billings forecast of $825M-$835M.
  • Wed, May 13, 5:33 PM
    • During Cisco's (NASDAQ:CSCO) FQ3 earnings call, John Chambers said he "would not bet" on a security M&A rumor heard today.
    • That was an apparent reference to FireEye (NASDAQ:FEYE), whose shares jumped on unconfirmed rumors that Cisco had made a bid.
    • FireEye has fallen to $41.71 in AH trading following Chambers' remarks. Shares are still up $0.41 from Monday's close.
  • Wed, May 13, 10:29 AM
    • Unconfirmed market chatter that Cisco has made a $9B bid for FireEye (NASDAQ:FEYE) has led shares of the threat-prevention hardware/software/service provider to spike higher.
    • For reference, FireEye's market cap is currently $6.7B. As Pandora investors can vouch, such rumors often (though not always) prove unfounded.
    • Update (5:35PM ET): Cisco CEO John Chambers threw cold water on the rumor during his company's FQ3 earnings call. FireEye has given back most of today's gains.
  • Fri, May 8, 2:38 PM
    • Security tech plays (HACK +2%) are doing quite well on an up day for equities after CyberArk (CYBR +9%) and Imperva's (IMPV +14.2%) Q1 reports provided more evidence corporate demand for IT security hardware, software, and services has grown strongly following a series of well-publicized hacks/breaches. Standouts (aside from CyberArk/Imperva) include FireEye (FEYE +3.4%), Vasco (VDSI +4.3%), and Zix (ZIXI +3.5%).
    • CyberArk beat Q1 estimates on the back of a 119% Y/Y increase in license revenue, and provided strong Q2/2015 guidance. Oppenheimer has hiked its target by $5 to $70. "CYBR is benefiting from a toxic landscape where hackers are continuously zooming on the keys to the kingdom. Identity is becoming the new currency of the security landscape..."
    • The firm also notes demand for CyberArk's full suite of privileged account/information protection software is growing relative to point products, and thinks the company has "limited competition." JPMorgan, though reiterating an Underweight, is pleased with growing $100K+ deal activity, and thinks the Anthem and Target breaches have respectively boosted demand from healthcare and retail firms.
    • Imperva beat Q1 estimates while guiding for Q2 revenue of $47M-$49M and EPS of -$0.20 to -$0.24 (above a consensus of $46.5M and -$0.25), and full-year revenue of $202M-$207M and EPS of -$0.63 to -$0.77 (above a consensus of $199.4M and -$0.85).
    • An 89% Y/Y increase in subscription revenue contributed to the cloud data-protection software vendor's Q1 beat, as did a 36% increase in $100K+ deals. Customer count rose by 150 to over 3,900, and the deferred revenue balance by 37% to $83.7M.
    • Cybersecurity firms sold off on Tuesday after Qualys provided soft guidance. It rallied two weeks ago in response to Fortinet's numbers. FireEye and Vasco have also delivered Q1 beats and above-consensus guidance.
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  • Tue, May 5, 10:32 AM
    • Though Qualys (QLYS -28.8%) beat Q1 EPS estimates and only slightly missed on revenue, it's guiding for Q2 revenue of $39.5M-$40M and EPS of $0.09-$0.11, below a consensus of $40.7M and $0.13. Full-year guidance is for revenue of $165M-$166.5M and EPS of $0.50-$0.55 vs. a consensus of $168.4M and $0.53.
    • Security tech peers are underperforming (HACK -2.9%) amid a 0.8% drop for the Nasdaq. Decliners include CyberArk (CYBR -3.6%), FireEye (FEYE -2.5%), Palo Alto Networks (PANW -2.9%), Proofpoint (PFPT -3.8%), and AVG (AVG -2.3%).
    • Discussing its light full-year outlook, Qualys says it now expects "a lower growth rate for our Vulnerability Management business than we did at the beginning of 2015" The growth rate for other products is said to be unchanged.
    • On the CC (transcript), Qualys noted Vulnerability Management (provides cloud-based tools for detecting and fixing IT vulnerabilities) still accounts for nearly 80% of revenue, and that business' Y/Y sales growth slipped to 19% in Q1 from 20% in Q4 thanks to "the timing of a few large enterprise deals." With shares up over 3x from their 52-week lows going into earnings, there was little margin for error.
    • Baird has gone contrarian and upgraded Qualys to Outperform following the rout. Baird, which maintains a $50 target, sees new products/services will boost growth. Qualys launched a cloud-based IT asset monitoring service last month, as well as a service for securing Web apps.
    • FireEye and CyberArk are giving back some of the big Friday gains seen following FireEye's Q1 beat and full-year guidance hike.
  • Fri, May 1, 2:00 PM
    • At least 5 firms have hiked their FireEye (NASDAQ:FEYE) targets after the threat-prevention/incident-response tech leader beat Q1 estimates on the back of 53% Y/Y billings growth, and provided strong sales/billings guidance. CyberArk (NASDAQ:CYBR), hit hard yesterday amid a tech selloff, is following FireEye higher.
    • Stephens: "Revenue upside was driven by strength across the Company's portfolio of products as Mandiant responded to more than 100 incidents, FireEye as a Service grew faster than any other product at scale, email attach rates were particularly strong, and [intrusion prevention system] attach rates doubled."
    • JPMorgan notes 28 $1M+ deals were inked in Q1, twice what was seen a year ago, and that over half of them were from new customers. It's also pleased with a 98% increase in international revenue (now 29% of total revenue), and that FireEye is now getting $2.31 in incremental billings for every incremental dollar of sales/marketing spend (close to a historical industry average of $2.76).
    • Both JPMorgan and Wells Fargo like the fact FireEye's sales cycles are shortening. Wells thinks the company can post 35%+ annual revenue growth for the next 5 years.
    • Those more cautious, such as Morgan Stanley and Cowen, cite concerns about valuation and still-heavy losses. FBR (Outperform) sees FireEye's op. margin (-56.5% in Q1) improving to -25.3% in 2016 from -44.1% in 2014. With billings well above reported revenue, cash flow should continue outpacing earnings.
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  • Fri, May 1, 9:13 AM
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  • Thu, Apr. 30, 6:42 PM
    • FireEye's (NASDAQ:FEYE) Q1 billings totaled $151.6M, +53% Y/Y and well above guidance of $130M-$140M. Q2 billings guidance is at $165M-$170M, while full-year guidance has been hiked to $825M-$835M from $800M-$820M.
    • Q2 and full-year revenue guidance is respectively at $140M-$144M and $615M-$635M, favorable to consensus estimates of $139.7M and $619.8M. With spending growth remaining heavy,  Q2 EPS guidance is at -$0.47 to -$0.50 (-$0.49 consensus), and full-year EPS guidance at -$1.75 to -$1.85 (-$1.86 consensus). Sales/marketing spend is expected to equal 64%-68% of 2015 revenue; R&D spend 35%-38%, and G&A 14%-17%.
    • Thanks to strong corporate demand for threat-prevention and hacking incident response services, subscription/services revenue rose  71% Y/Y in Q1 to $85.1M, and was 68% of total revenue. Product (hardware/software) revenue rose 64% to $40.2M. GAAP operating expenses rose 41% to $205.8M, and the deferred revenue balance grew 78% to $378.8M.
    • FEYE +2.1% AH to $42.15. Many expected strong numbers following good results from peers.
    • Q1 results, PR
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  • Thu, Apr. 30, 4:08 PM
    • FireEye (NASDAQ:FEYE): Q1 EPS of -$0.48 beats by $0.03.
    • Revenue of $125.37M (+69.5% Y/Y) beats by $4.81M.
    • Shares +2.5%.
    • Press Release
  • Wed, Apr. 29, 5:35 PM
  • Tue, Apr. 21, 10:06 AM
    • Looking to streamline ahead of its PC/printing spinoff, HP (HPQ -0.7%) is selling its Snapfish online photo-printing/storage unit to digital photo fulfillment services firm District Photo for an undisclosed sum. The deal is expected to close in the second half of FY15 (ends in October); Snapfish will continue using HP's printing hardware/software afterwards.
    • HP bought Snapfish for over $300M in 2005. Reuters reported last September the IT giant was thinking of selling the unit; Bloomberg reported a month later P-E firms had decided to pass. Rival Shutterfly (SFLY -1.1%), also the subject of M&A rumors, is slightly lower today.
    • Separately, HP has announced it's partnering with threat-prevention hardware/software/services leader FireEye (FEYE +3.5%) to deliver "a comprehensive suite of security remediation services underpinned by FireEye's advanced threat detection, intelligence, methodologies and incident response expertise."
    • The joint offerings, which will be sold by HP's massive IT services arm, include a global incident response and compromise assessment services from HP and FireEye's Mandiant unit (hired by many firms to probe cyberattacks), and managed threat-protection services that "provide 24/7 security monitoring for indications that a cyber-attack has bypassed traditional technology defenses."
    • News of the alliance comes a day after FireEye announced a partnership with firewall vendor/HP rival Check Point. FireEye's Q1 report arrives on April 30.
  • Mon, Apr. 20, 9:22 AM
    • Along with its Q1 results, Check Point (NASDAQ:CHKP) has announced a partnership with threat-prevention hardware/software/services leader FireEye (NASDAQ:FEYE) to "share threat intelligence to protect customers from modern advanced attacks." The deal covers intelligence-sharing for Check Point's ThreatCloud managed security service and Next Generation Threat Prevention appliances, and FireEye's NX Series threat-prevention hardware.
    • The companies assert they'll offer "the industry's largest library of threat intelligence currently available," and update information in near-real time. FireEye gains access to Check Point's huge installed base; Check Point gets to partner with a firm seen by many as an attack-prevention tech leader, and which has often been hired to probe major cyberattacks.
    • The deal comes two weeks after Cisco unveiled a malware-protection solution (offered either as an on-premise appliance or a cloud service) that pairs malware analysis with threat intelligence. In late March, next-gen firewall leader Palo Alto Networks (NYSE:PANW) launched a cyber threat intelligence service called AutoFocus.
    • Separately, Check Point has guided on its Q1 CC for Q2 revenue of $380M-$400M and EPS of $0.90-$0.99, in-line with a consensus of $392.4M and $0.94. With the company depending heavily on European sales, forex has been a major headwind.
    • CHKP +1.1% premarket to $82.58. FEYE +1.4% to $41.40.
    • Check Point's Q1 results, PR
    • Two months ago: Check Point buys threat-prevention startup Hyperwise
    • Update (3:10PM ET): Check Point is now up 5.2% amid a tech rally. FireEye is up 3.9%.
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  • Tue, Apr. 14, 6:22 AM
    • Cyberattacks and cybercrime against large companies – those with over 2,500 employees - rose 40% globally in 2014, according to Symantec's annual Internet Security Threat study published Tuesday.
    • Attacks on small- and medium-sized companies, which accounted for 60% of targeted attacks, increased 26% and 30%, respectively.
    • Despite the large hacks at Home Depot, JPMorgan, Staples and Sony, Symantec says the mining industry, which includes oil & gas, was the most-targeted sector last year.
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Company Description
FireEye Inc provides cybersecurity solution for detecting, preventing and resolving cyber-attacks that evade legacy signature-based security products. Its solutions include traditional and next-generation firewalls, IPS, anti-virus, and gateways.
Sector: Technology
Country: United States