FireEye Inc (NASDAQ:FEYE) Optimistic On Increased Spending On Cyber Security

FireEye Inc (NASDAQ:FEYE), a cybersecurity firm, raised FY2015 revenue forecast to a range of $615 million-$635 million from initial revenue guidance range of $605 million to $625 million. The company stated that it expects businesses and governments to increase spending on cybersecurity related needs.

The recent cyber attacks have compelled governments and companies to increase their online security. Chief Executive David DeWalt said that the market for cybersecurity services is white hot; also, the needs for Mandiant and FireEye solutions are white hot.

The performance

FireEye utilizes cloud-based technologies to assist government departments and businesses fight computer viruses that are capable to infringe old forms of antivirus software. The company operates in a growing industry. As per the report by MarketsandMarket, the global market for cybersecurity is expected to cross $155.74 billion by 2019.

The market was estimated at $95.60 billion last year. DeWalt added that the management is witnessing the problem of cyber attacks going global, with a lot of Chinese, Russia attackers, even American involvement, North Korea, the Middle-East; it is seen as a global pandemic.

The expectations

FireEye Inc (NASDAQ:FEYE) expects the loss to come in a range of $1.75 per share to $1.85 per share compared to previous forecast of $1.80 per share to $1.90 a share. The analysts’ expected loss of $1.86 per share on revenue of $619.8 million. Daniel Ives, an analyst with FBR Capital Markets, said that FireEye is well positioned at the right time, and it is the reason they crushed the billings figure.

The billings of the company surged 53% in 1Q ended March 31, 2015. The net loss attributable to FireEye shareholders came at 88 cents per share compared to 76 cents per share, recorded in the same quarter a year ago. The revenue surged 69.5% to $125.4 million. The increase in revenue can be attributed to impressive growth in subscription and services revenue led by acquisition of Mandiant Corp in 2014.

Culver Stinson

Culver Stinson

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.