Cybersecurity firm FireEye Inc. has cleaned up large data breaches at Sony Pictures Entertainment, Anthem Inc. and Home Depot Inc. Its computers and software helpGeneral Electric Co., Facebook Inc. and the National Security Agency keep out hackers.
The Milpitas, Calif., company is the most prominent among a new wave of cybersecurity firms making a name for themselves in the wake of data breaches. One thing FireEye doesn’t have, and isn’t expected to deliver before 2018, is an annual profit.
FireEye’s red ink is common in Silicon Valley, where young tech companies often bear the cost burden of developing unique offerings and recruiting customers. But Chief Executive Dave DeWalt’s strategy for reversing the losses is more reminiscent of an east coast defense contractor: keep spending on technology while embracing the government as a key customer.
FireEye is a prime example of how security companies increasingly stake their reputations on ties to Washington. CrowdStrike Inc., which just received investment from Google Capital to further develop its security software, counts the Federal Bureau of Investigation’s former lead cybercop as a top executive. Tanium Inc., privately valued at $3.5 billion, recently opened a federal office and hired a pair of FBI agents to help it win government contracts.
FireEye’s main business is selling hardware to large organizations to detect malicious computer code, or malware. Mr. DeWalt, a 51-year-old former college wrestler, likes to regale investors with details of its subscription renewal rates and the potential of a new partnership with credit-card issuer Visa Inc.
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