FireEye Fourth Quarter Results Top Estimates, Backs 2014 Outlook

(RTTNews) - Cybersecurity provider FireEye, Inc. (FEYE) reported Tuesday a loss for the fourth quarter that sharply narrowed from last year, reflecting a hefty income tax benefit and revenue growth. Adjusted loss per share came in narrower than analysts' expectations and quarterly revenues topped their estimates. The company also backed its outlook for the full-year 2014.

FireEye provides automated threat forensics and dynamic malware protection against the next generation of cyber attacks. The company has invented a purpose-built, virtual machine-based platform that provides real-time threat protection. It has over 1,000 customers across more than 40 countries.

The company on December 30 acquired privately-held Mandiant, the leading provider of advanced endpoint security products and security incident response management solutions. Kevin Mandia, Mandiant's founder and CEO prior to the acquisition, was appointed as chief operating officer of FireEye.

"By all measures, the fourth quarter was a strong finish to an extraordinary year for FireEye. During 2013, we nearly doubled our billings and revenue, built a global infrastructure to support our growth, completed our initial public offering, and extended our virtual machine-based security technology with mobile, data center, and small and midsized business solutions," Chairman and CEO David DeWalt said in a statement.

The Milpitas, California-based malware protection system company reported net income of $2.51 million or $0.02 per share for the fourth quarter, narrower than $12.58 million or $0.97 per share in the prior-year quarter.

Excluding items, adjusted net loss for the quarter was $40.47 million or $0.35 per share, compared to a loss of $8.35 million or $0.64 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report a loss of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter surged 81 percent to $57.26 billion from $31.68 billion in the same quarter last year, and topped fourteen Wall Street analysts' consensus estimate of $56.06 million.

Product revenue for the quarter surged 59 percent to $32.30 million from $20.31 million in the prior-year quarter, as well as subscription and services revenue soared 120 percent to $24.97 million from $11.37 million last year.

Income tax benefit for the quarter was $58.98 million, sharply higher than $1.08 million last year.

For fiscal 2013, the company reported a net loss of $120.64 million or $2.66 per share, compared to loss of $35.76 million or $3.28 per share in the prior year. Excluding items, adjusted net loss for the year was $134.83 million or $2.98 per share, compared to a loss of $26.38 million or $2.42 per share in the year ago. Total revenues for the full year nearly doubled to $161.55 million from $83.32 million in the previous year.

Street was looking for full-year 2013 loss of $3.21 per share on annual revenues of $160.53 million.

Looking ahead to the first quarter, the company expects adjusted loss in a range of $0.51 to $0.56 per share, on projected revenues between $70 million and $72 million, and billings between $84 million and $88 million, while analysts are looking for a loss of $0.37 per share on revenues of $76.16 million.

For fiscal 2014, the company company continue to anticipate adjusted loss in the range of $2.00 to $2.20 per share, on projected revenues between $400 million and $410 million, and billings between $540 million and $560 million.

Analysts currently expect the company to report full-year 2014 loss of $1.42 per share on revenues of $406.52 million.

"Our complementary technologies and combined product and service offerings accelerate our ability to deliver more effective threat protection at a lower cost in multiple security market segments. Our new MVX-IPS product is the first of several products on our roadmap designed to replace existing signature-based security products," DeWalt added.

FEYE closed Tuesday's regular trading session at $76.39, down $0.46 or 0.60% on a volume of 1.50 million shares. The stock plunged a further $5.36 or 6.87% in after-hours trading.