August 1, 2018 / 8:31 PM / a year ago

UPDATE 1-FireEye posts bigger loss, subscription revenue lags estimates

(Adds subscription business revenue, share price, background on strategy)

Aug 1 (Reuters) - Cybersecurity software maker FireEye Inc on Wednesday reported a bigger loss for the second quarter and missed Wall Street estimates for revenue from its closely watched subscription business.

Revenue from its subscription and services business grew 5.9 percent to $167.4 million in the three months ended June 30, but missed financial analysts’ estimates of $169.1 million, according to Thomson Reuters I/B/E/S.

To boost recurring revenue and profit margins, FireEye is pivoting to a subscription-based model from its traditional business that centered around the sale of hardware boxes.

The Milpitas, California-based company expects current-quarter adjusted earnings of between 1 cent and 3 cents per share. FireEye expects revenue of $206 million to $210 million.

FireEye said net loss attributable to shareholders widened to $72.9 million in the second quarter from $68.3 million a year earlier, as expenses surged.

Excluding one-time items, FireEye broke even on a per-share basis, better than analysts’ estimates of a 1-cent loss.

Revenue overall rose to $202.7 million, topping estimates of $201.5 million.

Shares of FireEye were slightly lower in choppy after-hours trading on Wednesday. (Reporting by Munsif Vengattil in Bengaluru; Editing by Sai Sachin Ravikumar)

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