April 30, 2019 / 8:13 PM / 23 days ago

FireEye revenue, billings forecasts disappoint, shares fall

(Reuters) - Cyber security company FireEye Inc on Tuesday forecast second-quarter revenue and billings largely below Wall Street expectations as it expects to close fewer large deals than it did a year ago, sending its shares down 5 percent in after-hours trading.

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

The company had signed two deals worth $10 million each in the first quarter and the second quarter of 2018, relatively rare for FireEye, Chief Financial Officer Frank Verdecanna said on a post-earnings call.

“We do not expect any $10 million plus transactions in the (current) quarter (of 2019),” Verdecanna added.

FireEye said it expects second-quarter billings in the range of $205 million to $220 million, largely below estimates of $215.2 million.

Analysts said rising competition is a threat for the company’s on-demand security services.

“(FireEye’s) on-demand security services could be impacted longer term by competitors adding machine learning and automated response technologies into their cybersecurity platforms,” Morningstar analyst Mark Cash said.

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.

However, FireEye’s first-quarter sales edged past estimates, as it got a boost from subscription and services revenue.

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.

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

For the full year, the company reaffirmed its revenue and profit forecast, while raising its billings forecast.

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

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below