(Adds CEO comment, details, background, share move)
By Abhirup Roy
Aug 5 Cybersecurity company FireEye Inc
forecast revenue for the current quarter that exceeded analysts'
expectations, helped by rising demand from companies and
Spending on Internet security is rising in the face of
increasingly sophisticated attacks, such as the breach at
retailer Target Corp that resulted in the theft of at
least 40 million payment card numbers.
FireEye uses cloud-based technologies to help its customers
fight off viruses that evade less-advanced software.
"The threat landscape is very severe," Chief Executive David
DeWalt told Reuters. "The old signature-based models ... aren't
working very effectively, so it's creating an opportunity for
FireEye in the macro sense."
Signature-based antivirus software detects threats by
matching suspicious code patterns with those of known viruses.
FireEye says its custom-built anomaly-based software detects
codes that are new or out of the ordinary and reduces the
instances of false alarms.
FireEye bought privately held Mandiant, a provider of
endpoint security products, in January and network intrusion
detection company nPulse in May to expand its security
"We were able to improve the overall margin and the overall
earnings per share largely because we were able to get synergies
out of the combined entities that we acquired," DeWalt said.
FireEye said it expected revenue of $114 million-$117
million for the third quarter ending September, exceeding the
average analyst estimate of $108.9 million.
The company also forecast a smaller-than-expected loss of
52-56 cents per share. Analysts on average expect a loss of 56
cents per share, according to Thomson Reuters I/B/E/S.
The company has been spending heavily on product
FireEye reported an adjusted loss of 55 cents per share for
the second quarter ended June 30, compared with the average
analyst estimate of 60 cents.
Revenue nearly tripled to $94.5 million.
FireEye shares were down marginally at $34.00 in extended
trading on Tuesday.
(Reporting by Abhirup Roy and Lehar Maan in Bangalore; Editing
by Sriraj Kalluvila and Ted Kerr)