* Expects first-quarter rev $70-$72 mln vs est $76.2 mln
* Fourth-quarter adj EPS $0.35/shr vs est $0.37
* Revenue $57.3 mln vs est $56.1 mln
* Shares fall as much as 8 pct post-market
(Compares with estimates; Adds analyst's comments, details)
By Lehar Maan and Richa Naidu
Feb 11 Network security company FireEye Inc
forecast current-quarter revenue below analysts'
average expectation and warned that development costs would rise
sharply, sending its shares down nearly 8 percent in after-hours
FireEye, which acquired computer forensics specialist
Mandiant Corp in January, said it expects revenue of $70-$72
million for the first quarter.
Analysts on average were expecting revenue of $76.2 million,
according to Thomson Reuters I/B/E/S.
FireEye forecast current-quarter research and development
costs to range between 50-53 percent of revenue. This implies
expenses of between $35 million and $38.2 million, higher than
the $21.5 million in the fourth quarter.
"Expenses are a little more than expected for the year... I
think most investors here would focus on the growth profile, I
think that's kind of splitting hairs in terms of expense
shocks," FBR Capital Markets & Co analyst Daniel Ives said.
"They continue to under-promise and over-deliver. And that
continues to be their sort of mantra," Ives added.
FireEye expects a loss of 51-56 cents per share for the
FireEye is focusing more on investment for future growth and
is not looking at profitability in the near term, Chief
Operating Officer Kevin Mandia told Reuters.
Mandia, founder of Mandiant, joined FireEye following its
The company's revenue jumped 81 percent to $57.3 million in
the fourth quarter ended Dec. 31, slightly above analysts'
average expectation of $56.1 million.
Governments and businesses have been beefing up their online
security measures to safeguard data from threats posed by
FireEye's adjusted net loss widened to $40.5 million, or 35
cents per share, for the fourth quarter ended Dec.
Analysts had expected a loss of 37 cents per share.
The company's shares were down 6.7 percent at $72.75 in
extended trading after closing at $78.01 on the Nasdaq on
Tuesday. The shares have nearly doubled in value since listing
(Reporting By Lehar Maan and Richa Naidu in Bangalore; Editing
by Sriraj Kalluvila)