Mon, Feb. 29, 10:36 AM
- Considering KEYW Holding's (KEYW -4.2%) plans to divest its Hexis Cyber Solutions unit a mixed blessing, RBC's Robert Stallard has downgraded shares to Sector Perform, and cut his target by $4 to $7.
- Stallard admits Hexis (unlike KEYW's profitable Government Solutions unit) has been a cash drain, as KEYW invested heavily to grow the business in the face of tough competition. But he also thinks unloading Hexis will prevent KEYW from receiving the kind of valuation premiums given to growth-stage tech companies.
- KEYW is still up 34% since posting a Q4 beat and announcing it's "exploring strategic alternatives" for Hexis last Wednesday.
Thu, Feb. 25, 12:48 PM
Thu, Feb. 25, 9:56 AM
- KEYW Holding (KEYW +21.3%) used its Q4 report to state it's "exploring strategic alternatives" for its Hexis Cyber Solutions unit, which is responsible for the company's HawkEye G threat-detection and malware-removal solution.
- KEYW adds it's "in the advanced stages" of the review process, and expects to make an announcement in the coming weeks. The news comes shortly after KEYW announced it's selling its systems engineering and technical assistance (SETA) business for $12M in cash. Commercial Cyber Solutions revenue totaled $5.6M in Q4 (+54% Y/Y).
- The company's core Government Solutions unit saw revenue rise 7.4% Y/Y to $75.1M, with adjusted EBITDA margin dropping 30 bps to to 12.1%. On its earnings call (transcript), KEYW guided for 2016 Government Solutions revenue of $280M-$305M - that compares with 2015 revenue of $286M after excluding SETA and the commercial ops. Adjusted EBITDA margin is expected to be in a 10%-13% range.
- CEO William Weber: "Within two to three years, our goal is to be solidly entrenched in six or seven of the intelligence community agencies with a foothold in an additional three or four more. We believe this expanded presence will add significant organic growth in new revenue, generate sustainable EBITDA margins in the low to mid-teens ... We believe our KeyRadar software defined radar, Typhoon, our cyber operations platform and our Mosaic open-source content curation product to name then just a few will be gateways to services contracts with key Intel community customers."
- KEYW's Q4 results, earnings release
Thu, Feb. 25, 9:12 AM| Thu, Feb. 25, 9:12 AM | 9 Comments
Nov. 9, 2015, 6:56 PM
- KEYW Holding now expects 4%-6% 2015 revenue growth for its core Government Solutions segment; prior guidance was for 4%-8% growth. Revenue guidance for the Commercial segment (Hexis/HawkEye G) is now at $13M-$15M vs. a prior $15M; it was at $25M prior to the Q2 report.
- Government Solutions is still expected to see a 12%-14% adjusted EBITDA margin. The adjusted EBITDA loss forecast for Commercial has been lowered to $30M-$32M from $30M-$34M.
- Government Solutions revenue rose 2.9% Y/Y to $78.1M; Commercial revenue was roughly flat at $3M. GAAP operating expenses rose by $3.1M Y/Y to $28.3M. HawkEye G installations have risen to 36 from 30 from the time of the Q2 report, with revenue-generating customers rising to 18 from 16.
- Shares have plunged to $6.24 after hours. The 52-week low is $5.60.
- Q3 results, PR
Nov. 5, 2015, 12:47 PM
- Fortinet (FTNT -4.2%), Barracuda (CUDA -3.9%), Vasco (VDSI -1.9%), Proofpoint (PFPT -4.6%), and KEYW (KEYW -6.3%) have joined the ranks of enterprise security tech firms selling off in the wake of FireEye's Q3 revenue/billings miss, soft Q4 sales guidance, and full-year billings guidance cut.
- Other decliners include Palo Alto Networks, CyberArk, and Rapid7. FireEye itself is down 23%.
- Also: PC/mobile security software firm AVG is down 17.7% after missing Q3 estimates and providing light Q4 guidance. Symantec is up slightly following an FQ2 EPS beat.
- The PureFunds ISE Cyber Security ETF (HACK -3.1%) has fallen below $27. CyberArk reports after the bell.
- Update: FBR's Daniel Ives is defending the group. "Importantly, we note that nearly every major cybersecurity player (Check Point, Imperva, Proofpoint, Palo Alto, Fortinet) recently has delivered strong results across the board with a healthy outlook ... We continue to strongly believe that FireEye's issues are much more company-specific as DeWalt & Co. are dealing with a plethora of execution/product headaches in the field, which are major overhangs on the FireEye story heading into 2016. We continue to see white-hot cybersecurity spending, which we view as a 30%+ growth area in a 2%–3% overall IT landscape as the threat landscape escalates. We would be strong buyers of the cybersecurity basket, with PANW, PFPT, and CHKP front and center."
Oct. 2, 2015, 10:56 AM
- "One of the nation's leading energy providers" has selected KEYW's HawkEye threat-detection/malware-removal hardware and software solution. The deal covers tens of thousands of customer endpoints, and is said to be the first 7-figure deal for the recently-launched HawkEye G 3.0 platform.
- Version 3.0 integrates with security products from the likes of Palo Alto Networks, FireEye, and Splunk, and features better endpoint detection and threat-verification tools.
- In August, KEYW cut 2015 sales guidance for its Commercial segment (responsible for HawkEye G) to $15M from $20M-$25M. The company had 30 HawkEye G installations as of Aug. 10.
Aug. 26, 2015, 4:21 PM
- The Nasdaq has closed its latest ultra-volatile day up 4.2%. Chip stocks, hit hard in recent weeks amid China/inventory concerns, were among the standouts (SOXX +5%) during the rally: Big gainers included Nvidia (NVDA +7.5%), Skyworks (SWKS +6.9%), Qorvo (QRVO +5.9%), Xilinx (XLNX +6.3%), Analog Devices (ADI +7.1%), Linear (LLTC +6.1%), SanDisk (SNDK +7.4%), ON Semi (ON +6.2%), and Cavium (CAVM +5.6%).
- Cybersecurity plays and various other enterprise tech names also did well. Standouts included HP (HPQ +5.5%), Palo Alto Networks (PANW +6%), Rackspace (RAX +9.8%), Red Hat (RHT +5.9%), KEYW (KEYW +8.1%), Brocade (BRCD +5.6%), ShoreTel (SHOR +5.7%), Violin Memory (VMEM +14.7%), and Rapid7 (RPD +7.2%).
- In addition to HP, tech large-caps turning in big gains included Apple (AAPL +5.7%) Microsoft (MSFT +5.5%), Google (GOOG +7.7%), and Intel (INTC +5.5%). Google benefited from a Goldman upgrade.
- KEYW announced a CEO change yesterday afternoon. HP and Brocade are adding to last week's post-earnings gains. Skyworks/Qorvo peer Avago has posted an FQ3 beat after the close.
Aug. 11, 2015, 12:49 PM
- With shares down 32% YTD going into earnings in spite of a major rally in security tech names, KEYW Holding is up strongly after missing Q2 EPS estimates and slightly beating on revenue.
- The company is reiterating guidance for 4%-8% full-year revenue growth and a 12%-14% adjusted EBITDA margin for its Government Solutions unit. However, KEYW's Commercial segment (Hexis/HawkEye G) has seen revenue guidance cut for the second time in 3 months, this time to $15M from $20M-$25M. The segment is expected to post a $30M-$34M 2015 adjusted EBITDA loss.
- Interim CEO Mark Willard: "We experienced strong government order flow in the second quarter, and our pipeline of submitted and pending proposals remains at an all-time high with proposals pending award just short of $400 million, in-process proposals totaling almost $600 million and total value of all 2015 and 2016 opportunities of almost $2 billion..." Installations for the HawkEye G threat-prevention/malware-removal platform stood at 30 as of Aug. 10, up from 23 as of May 7.
- Weighing on Q2 EPS: Operating expenses rose 20% Y/Y in Q2 to $11.2M (compares with 6% revenue growth). KEYW ended Q2 with $18.5M in cash, and $126.9M in convertible debt.
- Q2 results, PR
Jul. 23, 2015, 11:27 AM
- As was the case 3 months ago, security tech plays are up strongly (HACK +3.6%) after Fortinet (FTNT +12%) beat estimates, reported strong billings, and delivered above-consensus top-line guidance. The Nasdaq is up 0.3%.
- In addition to FireEye, Palo Alto Networks, and CyberArk (previously covered), gainers include Barracuda Networks (CUDA +6.4%), KEYW Holding (KEYW +4.5%), Symantec (SYMC +1.9%), Imperva (IMPV +7.6%), Proofpoint (PFPT +3.6%), Vasco (VDSI +4.5%), AVG (AVG +3.1%), and Qualys (QLYS +5.7%). AVG is benefiting a bullish JPMorgan coverage launch; Proofpoint reports after the close.
- JPMorgan's Sterling Auty has upgraded Fortinet to Overweight, and a slew of firms have hiked their targets. Auty argues Fortinet's numbers suggest its efforts to grow its high-end presence (aided by major sales investments in recent years), and forecasts free cash flow will rise 43% this year.
- On Fortinet's earnings call (transcript), CFO Drew Del Matto mentioned $100K+ deals rose 53% Y/Y and $1M+ deal 133% (compares with 40% total billings growth). He also mentioned the company's high-end FortiGate UTM/next-gen firewall appliances made up 45% of billings (a new high), and that U.S. enterprise sales (benefiting from strong cybersecurity spend) rose 90%. Major deals were struck with "two of the most recognizable technology brands in the world," as well as two large i-banks.
Jul. 9, 2015, 2:26 PM
- Security tech plays are outperforming amid a 0.4% gain for the Nasdaq. The rally comes a day after the NYSE suffered a lengthy outage, United Airlines grounded flights, and the WSJ's site briefly went down.
- All three incidents have been blamed on tech issues rather than attacks/breaches, but questions linger. FBI director James Comey: "We do not see any indication of a cyber breach or cyber attack ... But again, in my business, you don't love coincidences." Ex-White House cybersecurity advisor Richard Clarke: "Right now, anybody who says they know for sure what happened before the forensic work has been done is kidding themselves."
- Also: In a bit of good PR/convenient timing for the group, representatives from the PureFunds Cyber Security ETF (HACK +1.6%) rang the NYSE's opening bell today. The NYSE says the event was booked months in advance.
- Standouts include CyberArk (CYBR +4%), FireEye (FEYE +2.7%), KEYW Holding (KEYW +5%), Fortinet (FTNT +2.4%), Check Point (CHKP +2.6%), Imperva (IMPV +2.9%), Zix (ZIXI +2.8%), Proofpoint (PFPT +2.7%), and Vasco (VDSI +2.5%). Barracuda (CUDA +2%) reports after the bell.
Jul. 1, 2015, 12:20 PM
- KEYW Holding's Hexis enterprise/government cybersecurity product unit has named Chris Carlson, formerly the unit's senior director of product management, the VP of product management for Hexis' HawkEye G malware-detection/threat-removal solution.
- Meanwhile, Jan Manning, formerly the CIO of SIM card provider SafeNet/Gemalto, has been named KEYW's VP of IT operations.
- KEYW has fallen sharply on an up day for equities. Founder/ex-CEO Len Moodispaw passed away two weeks ago.
Jun. 29, 2015, 3:38 PM
- A long list of tech companies are posting big declines as the Nasdaq drops 2.2% amid a market rout triggered by expectations of a pending Greek default.
- 6%+ decliners include program guide/content protection IP firm Rovi (ROVI -9.5%), ultracapacitor maker Maxwell (MXWL -8.2%), wireless charging tech developer Energous (WATT -9%), cybersecurity hardware/software provider KEYW Holding (KEYW -8.5%), LED sapphire wafer maker Rubicon (RBCN -10.8%), IP licensing firm WiLAN (WILN -7.1%), security software provider Wave Systems (WAVX -11.6%), online video hosting platform Brightcove (BCOV -7%).
- In a repeat of Friday's trading, many Chinese tech names are also off sharply. The group includes mobile app developer Cheetah Mobile (CMCM -9.7%), e-commerce services firm Baozun (BZUN -8%), online travel agency eLong (LONG -15.3%), and online retailer LightInTheBox (LITB -7.8%).
- See also: LinkedIn, Yandex/Qiwi, solar stocks, Xoom, AppliedMicro
Jun. 24, 2015, 11:54 AM
- Baird has downgraded Fortinet in response to a healthy 2015 run-up, and many security tech peers have joined the company in seeing profit-taking (HACK -1.3%). The Nasdaq is down just 0.1%.
- Decliners include FireEye (FEYE -2.3%), Qualys (QLYS -6.7%), KEYW (KEYW -5.1%), Check Point (CHKP -1.9%), Barracuda (CUDA -2.5%), Vasco (VDSI -2.5%), and Proofpoint (PFPT -1.8%). UBS downgraded FireEye to Neutral two days ago while citing valuation, and also cut Symantec to Sell. RBC has hiked its Qualys target by $6 to $44 today, while reiterating a Sector Perform.
- The selloff comes as an Office of Personnel Management (OPM) official states up to 18M Social Security numbers may have been stolen in a recent breach. FireEye recently ID'd a Chinese group it believes was responsible for the hack.
- Meanwhile, the WSJ has published a column about Check Point's efforts to expand beyond its core firewall market, and thereby keep the likes of Fortinet and Palo Alto Networks at bay. Gartner estimates Check Point had a 22.7% 2014 firewall share, well above #2 Cisco's (NASDAQ:CSCO) 15.9% but down from a 2013 share of 24%.
Jun. 16, 2015, 5:38 PM
Jun. 15, 2015, 5:40 PM
The KEYW Holding Corp. operates as a holding company, which through its subsidiaries, engages in providing cyber security, cyber superiority and geospatial intelligence solutions. The company offers its solutions to the defense, intelligence, national security agencies and commercial... More
Industry: Security Software & Services
Country: United States