Friday, 1 May 2015

FireEye sales buoyed by cyber security demand

Sophisticated cyber attacks have become the bane of executives across the S&P 500. For FireEye, which sells cyber security products to protect companies from said attacks, the sudden focus has made for good fortune.

The Milpitas, California-based company lifted its full-year revenue guidance and reported a 70 per cent jump in sales on Thursday as it continued to add new customers.

FireEye now expects sales to range between $615m and $635m, compared with Wall Street estimates for $620.1m and ahead of its earlier forecast for revenues to range from $605m to $625m.

David DeWalt, chief executive, said the company added new strategic partners and saw an increase in billings as companies turned to it to protect from hackings.

FireEye has done well in the wake of security breaches in the US. Cyber attacks have exposed personal information, such as credit card and social security numbers, of tens of millions of people in hackings that have targeted JPMorgan Chase, Target and health insurer Anthem.

The updated outlook accompanied FireEye’s first quarter results, which showed a 70 per cent rise in sales to $125.4m from a year earlier in the three months to the end of March.

The company reported a loss of $134m, or 88 cents a share, compared to $101.2, or 76 cents a share, in the year ago period.

Analysts had forecast a loss of 85 cents a share on sales of $120.6m.

The company said first quarter billings, an indicator of future revenue, grew 53 per cent year-on-year to $151.6m, ahead of the company’s forecasts for $130m-140m.

Shares of FireEye rose 1 per cent in after hours trading to $41.68.

 

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