Fighting Fire With FireEye
Hutton Alpha • 14 Comments
Hutton Alpha • 14 Comments
Will Lastline Make FireEye Need A Lifeline?
Josh Burwick • 39 Comments
Josh Burwick • 39 Comments
Fri, Aug. 5, 9:12 AM
Thu, Aug. 4, 5:35 PM
Thu, Aug. 4, 4:49 PM
- FireEye (NASDAQ:FEYE) reports 19% Y/Y revenue ($175M) and 10% Y/Y billings ($196.4M) increases, though both figures were below expectations.
- Operating margin of -28% vs. -41% Y/Y. Cash flow from operations of -$13.1M vs. $39.1M Y/Y.
- Projects Q3 revenue of $180M-$186M, billings of $200M-$215M, operating margin of negative 25% to negative 27% of revenue, and net loss per share of $0.30-$0.32.
- Projects FY 2016 revenue of $716M-$728M, billings of $835M-$855M, operating margin of negative 26% to negative 28% of revenue, and net loss per share of $1.28-$1.32.
- Announces the company's board of directors approved a plan to reduce its workforce. Projects Q4 cost benefit of $20M resulting from the move.
- CEO Kevin Mandia: "We still have much work to do, but I am convinced that FireEye has the critical assets necessary for long term success, and that we are taking additional steps to achieve balanced growth and profitability."
- Mandia additionally noted in a separate interview the “scope and scale” of cyber threats have changed, resulting in lower volume attacks and consequently less sizable deals for FireEye.
- Conference call
- Press release
- Slide presentation
Wed, Jun. 15, 2:58 PM
- Bloomberg reports FireEye (FEYE +5.4%) has rejected several takeover offers.
- The report follows speculation a tech giant such as Cisco or IBM will bid for threat-prevention hardware/software/services provider as shares continue trading at depressed levels. FireEye rose on Monday after Symantec announced it's buying Blue Coat for $4.65B.
- Update: Bloomberg reports FireEye hired Morgan Stanley to field offers, and "turned down at least two suitors that made offers below its expectations of $30 or more per share." Symantec (NASDAQ:SYMC) was one of the suitors before deciding to acquire Blue Coat. The sale process is no longer active.
Mon, Jun. 13, 10:31 AM
- FireEye (FEYE +3%) has caught a bid after Symantec announced it's buying web/cloud security hardware and software firm Blue Coat for $4.65B, or over 90% more than what P-E firm Bain paid for Blue Coat last year.
- There's been speculation FireEye will draw M&A interest, given its shares trade at a small fraction of their 2014 high and the company still maintains strong positions in multiple security tech fields. Cisco and IBM have been mentioned as potential suitors.
Thu, May 26, 5:46 PM
- Several security tech names are selling off after next-gen firewall leader and cybersecurity poster child Palo Alto Networks (PANW - down 9.4%) offered in-line guidance (below consensus at the midpoints) to go with an FQ3 sales beat and in-line EPS, disappointing investors accustomed to seeing Palo Alto provide above-consensus sales guidance with its results.
- Palo Alto's billings rose a solid 61% Y/Y in FQ3, nearly on par with FQ2's 62% growth and outpacing revenue growth of 48%. Product revenue rose 33%, and services revenue (boosted by subscription offerings such as WildFire) 63%. EPS was pressured by a 50% Y/Y increase in GAAP operating expenses to $309.5M.
- FireEye (NASDAQ:FEYE) is down 2% after hours. CyberArk (NASDAQ:CYBR) is down 2.4%. Imperva (NYSE:IMPV) is down 1.7%. Fortinet (NASDAQ:FTNT) is down 1.5%.
- ETF: HACK
Tue, May 24, 1:23 PM
- Vague buyout rumors are once more giving a lift to beaten-up FireEye (FEYE +7.3%). IBM is the rumored suitor in question this time around (Cisco did the honors last year). The Nasdaq is up 1.9%.
- Also: optionMONSTER reports over 7K call option contracts sporting a $14.50 strike price and expiring on May 27 were purchased today. FireEye closed yesterday at $14.25, but is now above $15.
- Shares have now recovered most of the losses they saw after FireEye issued soft revenue guidance in its May 5 Q1 report, and announced Dave DeWalt is being replaced as CEO by President Kevin Mandia. Mandia and CFO Michael Berry have bought shares since.
Mon, May 16, 2:44 PM
- Two weeks after being named CEO, Kevin Mandia discloses he bought 27,600 FireEye (FEYE +3.5%) shares today at $12.70. His direct holdings now total 2.63M, and his indirect holdings 144K.
- FireEye was clobbered on May 6 after the company (in tandem with its CEO announcement) posted mixed Q1 results and offered soft revenue guidance. CFO Michael Berry bought 16,500 shares on May 9 at $12.84.
Fri, May 6, 12:45 PM
Fri, May 6, 9:11 AM
Thu, May 5, 4:12 PM
- FireEye (NASDAQ:FEYE): Q1 EPS of -$0.47 beats by $0.03.
- Revenue of $168M (+34.0% Y/Y) misses by $3.8M.
- Billings of $186M (+23% Y/Y).
- Expects Q2 revenue of $178M-$185M and EPS of -$0.38 to -$0.40, below a consensus of $192.8M and -$0.36. Billings guidance is at $200M-$215M.
- Expects 2016 revenue of $780M-$810M and EPS of -$1.20 to -$1.27 vs. a consensus of $828.6M and -$1.25. Billings guidance is at $975M-$1.055B.
- CEO Dave DeWalt steps down and is succeeded by President Kevin Mandia. CFO Mike Berry will now also serve as COO. Mandiant President Travis Reese has been named FireEye's President. DeWalt will remain with FireEye as executive chairman.
- Shares -8.3% after hours.
- Press Release
Wed, Mar. 9, 9:22 AM
- Piper's Andrew Nowinski, who smartly downgraded FireEye (NASDAQ:FEYE) to Neutral last October (shares were at $33.06 at the time), has upgraded to Overweight following yesterday's analyst day, and hiked his target by $9 to $24. Shares are up 4.6% premarket to $18.74.
- Nowinski: "We are upgrading FEYE to Overweight based on four factors. First, we believe FireEye will be successful in transitioning to an “As-a-Service” model, given the increasing complexity of the security environment and FireEye’s best-in-class intelligence gathering capabilities. Second, we believe FireEye can effectively leverage the channel to drive international expansion, without a significant increase in operating expenses. Third, we believe FireEye has a strong product roadmap, with new products designed to penetrate the SMB market as well as virtual products designed to target the cloud. Finally, we believe the culmination of these factors will enable FireEye to reach profitability in the second half of 2017."
- Wells Fargo's Gray Powell (Market Perform) has upped his valuation range by $1 to $16-$17. He notes the two key themes of yesterday's meetings were a shift towards emphasizing FireEye as a Service (FaaS) - it has only only 8%+ penetration within the customer base, but had a $100M+ annual run rate as of Q4 - and re-architecting FireEye's MVX malware-prevention engine so that it can be offered as a software-based service (thus helping FireEye penetrate SMBs and branch offices, as well as improve intelligence-gathering for other products).
- Wedbush's Steve Koenig (Neutral, target hiked by $1 to $18): "We think the company has the right strategy in pivoting towards providing a global threat management platform delivered as a service. This pivot involves a higher mix of technology-enabled services, subscription-based offerings, and cloud-based technology delivery ... The company plans new subscription-based offerings that can address distributed environments (e.g. retail and banking) in 2H16 and SMB customers with a pure cloud offering in early 2017."
- FireEye's analyst day slides
- Yesterday: FireEye slightly hikes 2016 EPS guidance
Tue, Mar. 8, 11:26 AM
- In tandem with today's analyst day (webcast), FireEye (FEYE -3.6%) has slightly upped its 2016 EPS guidance to -$1.20 to -$1.27 from -$1.25 to -$1.32. The company has also cut its 2016 capex budget by $15M to $35M. 2016 revenue, billings, and op. cash flow guidance (issued in the Feb. 11 Q4 report) has been reiterated.
- JPMorgan's Sterling Auty (Overweight rating) declares FireEye's revised outlook places the company "a lot closer" to breakeven than the market realizes, and that a mix shift towards services will improve the company's bottom line and yield more consistent growth. With billings higher than revenue, FireEye expects 2016 op. cash flow of $70M-$80M (implies free cash flow of $35M-$45M, given the capex budget) in spite of its EPS guidance.
- Shares are lower on a morning the Nasdaq is down 0.8%.
Mon, Feb. 29, 2:10 PM
- FireEye (FEYE +2.2%) is partnering with major industrial networking/connectivity hardware provider Belden (BDC +1.4%) to "provide integrated industrial network security solutions to critical infrastructure providers around the world."
- FireEye products covered by the partnership include the company's core MVX threat-prevention hardware and software platform, its threat analytics software platform, and its monitoring, incident response, and threat intelligence services. Belden products covered include the company's Tripwire endpoint monitoring, configuration management, and risk modeling software, its Tofino security appliance, and its GarrettCom ruggedized industrial switches/routers.
- Separately, FireEye is launching Mandiant ICS HealthCheck, a security assessment service for industrial control system providers. FireEye declares the service to be "designed to meet the needs of asset owners concerned about the operational risk associated with software-based agents, network scanning or other security evaluation techniques."
- In other news, IBM is encroaching on FireEye's turf by acquiring incident-response software firm Resilient Systems and creating a services business (called X-Force Incident Response Services) focused on planning for, managing, and responding to cyberattacks.
Tue, Feb. 16, 3:05 PM
- Plenty of tech companies are posting outsized gains on a day the Nasdaq is up 2%. Not surprisingly, many of the standouts are companies that have been hammered since New Year's.
- Notable gainers include action camera leader GoPro (GPRO +12.9%) and GoPro video processor supplier Ambarella (AMBA +6.2%), threat-prevention tech provider FireEye (FEYE +11.2%), supercomputer maker Cray (CRAY +19.5%), chip packaging/testing firm ChipMOS (IMOS +17.8%), point-of-sale hardware/software firm NCR (NCR +9.7%), Web hosting/domain registration firm GoDaddy (GDDY +9%), and driver-assistance system provider Mobileye (MBLY +7.4%). FireEye fell on Friday in the wake of its Q4 report.
- Other big gainers: RF chipmakers Skyworks (SWKS +6.4%) and Qorvo (QRVO +8.9%), 4G modem/M2M module maker Sierra Wireless (SWIR +8%), microcontroller/flash memory maker Cypress Semi (CY +7.5%), microphone maker Knowles (KN +8%), inventory-tracking hardware firm Zebra Technologies (ZBRA +8.5%), cloud HR software firm Paylocity (PCTY +7.8%), cloud collaboration/chat software firm Atlassian (TEAM +10.5%), touch controller/display driver vendor Synaptics (SYNA +7.8%), and online P2P lender LendingClub (LC +14.2%). LendingClub rallied last week after posting a Q4 beat and announcing a $150M buyback.
- Previously covered: Solar stocks, Chinese tech stocks, Groupon, Sonus, Black Box, Canadian Solar, Palo Alto Networks, Qualcomm
Fri, Feb. 12, 4:35 PM
- FireEye (FEYE -3.3%) made fresh post-IPO lows today after posting nearly in-line Q4 results and providing a mixed bag of sales, EPS, and billings guidance. Several firms lowered their targets, but none downgraded.
- 2016 billings guidance of $975M-$1.055B implies ~20% Y/Y organic growth, in-line with FireEye's January remarks. On the earnings call (transcript), CFO Mike Barry stated recent acquisitions iSIGHT (threat intelligence) and Invotas (security orchestration/automation software) are expected to deliver 2016 billings of $60M-$65M between them. He also disclosed FireEye paid $30M for Invotas - $19M in cash and the rest in stock.
- The company asserts deal activity remains strong - 47 $1M+ transactions were closed in Q4 vs. 43 a year ago, with 85% of them featuring multiple products. Nonetheless, product (hardware/software) revenue fell 2% Y/Y. Product subscriptions (+56%), support (+57%, driven by past deals), and professional services (+60%, boosted by Mandiant) were stronger.
- Barry forecasts FireEye will "keep a good portion of our operating costs basically flat during 2016 as we move more resources to more high-growth areas." $70M-$80M in op. cash flow is expected in 2016. GAAP operating expense srose 20% Y/Y in Q4 to $245.1M, a slower growth rate than in recent quarters. $135.4M was spent on sales/marketing, $71.7M on R&D, and $38M on G&A.
- CEO Dave DeWalt insists FireEye's European sales team "bounced back very nicely" in Q4 following a rough Q3. "I feel like the organization's taking better shape. We have new leadership there."
- Oppenheimer's Shaul Eyal (Outperform rating, target cut by $4 to $35): "We remain attracted to FEYE given: 1. strength in recurring subscription and support billings (+~30% YoY); 2. improvement in EMEA/APAC; 3. an accelerated path to profitability; 4. eventual take-out candidate; and 5. compelling valuation levels of 1.5X EV/FY17 revenue."
- FireEye's results/guidance, earnings release
FireEye, Inc. develops virtual machine-based security platform that provides real-time protection to enterprises and governments worldwide against the next generation of cyber attacks. The FireEye Threat Prevention Platform provides real-time, dynamic threat protection without the use of... More
Industry: Application Software
Country: United States