FireEye quarterly revenue misses estimates, shares plunge

Reuters News
Posted: Nov 04, 2015 4:40 PM

(Reuters) - Cyber security company FireEye Inc reported quarterly revenue below analysts' expectations, sending its shares crashing 15 percent in extended trading on Wednesday.

The company also reported billings of $210.6 million, below its forecast of $225-$230 million in July. FireEye defines billings as revenue recognized in a quarter plus the change in deferred revenue and is a key indicator of the company's health.

Revenue rose 45 percent to $165.6 million in the third-quarter ended Sept. 30, but fell short of analysts' estimate of $167.1 million, according to Thomson Reuters I/B/E/S.

While demand for latest security offerings such as advanced threat protection has risen, analysts have said FireEye has been hurt as competition intensifies in the hotly contested market.

FireEye, which had never posted a profit, offers cloud-based technology to help businesses and government departments fight viruses that try to breach older antivirus software.

Net loss attributable to shareholders widened to $135.5 million, or 88 cents per share, from $120 million, or 83 cents per share from a year earlier.

(Reporting by Abhirup Roy in Bengaluru; Editing by Anil D'Silva and Sayantani Ghosh)