FireEye results hit Wall Street’s mark, current quarter forecast to fall short

Technology

(Reuters) – FireEye Inc on Tuesday posted first-quarter revenue and billings better than Wall Street expectations, but forecast revenue and profit for the current quarter below analysts’ estimates.

FILE PHOTO: The FireEye logo is seen outside the company’s offices in Milpitas, California, December 29, 2014. REUTERS/Beck Diefenbach

The company’s first-quarter revenue edged past estimates and excluding items, it lost 3 cents per share, in line with the average consensus, according to IBES data from Refinitiv.

Shares of the cyber security company rose 1 percent in after-market trading.

Cyber security companies have benefited as organizations worldwide ramp up budgets to shield against rising cyber crime. Severe attacks such as a denial-of-service can cripple entire organizations while malware and phishing often target individuals through emails.

Quarterly revenue from subscription and services rose 2.7 percent to $169.9 million, above estimates of $164.4 million while billings of $182 million was also better than estimates of $176.9 million.

Billings include revenue recognized plus the change in deferred revenue and is an important indicator of the health of a company’s business.

The company’s net loss attributable to shareholders widened to $75.4 million in the first quarter ended March 31 from $71.8 million a year earlier.

On a per share basis, the company lost 38 cents per share, compared with 39 cents per share last year.

FireEye’s total revenue rose 5.8 percent to $210.5 million. Analysts on average had expected revenue of $210.2 million.

But the company is tacking on more costs in its transition to a subscription-based model. Total operating expenses rose 5.5 percent to $202.5 million.

Milpitas, California-based FireEye forecast second-quarter adjusted profit of between 1 cent and 3 cents per share and revenue in the range of $212 million to $216 million.

Analysts on average were expecting a profit of 4 cents per share and revenue of $216 million.

Reporting by Arjun Panchadar in Bengaluru; Editing by Maju Samuel, Bernard Orr

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