(Adds CEO comment, details, background, share move)
By Abhirup Roy
Aug 5 (Reuters) - Cybersecurity company FireEye Inc forecast revenue for the current quarter that exceeded analysts’ expectations, helped by rising demand from companies and governments.
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 offerings.
“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 development.
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)