{"id":58440,"date":"2018-02-09T07:01:36","date_gmt":"2018-02-09T07:01:36","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=58440"},"modified":"2018-02-09T07:01:36","modified_gmt":"2018-02-09T07:01:36","slug":"fireeye-reports-first-ever-adjusted-quarterly-profit-shares-jump","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/fireeye-reports-first-ever-adjusted-quarterly-profit-shares-jump.html","title":{"rendered":"FireEye reports first-ever adjusted quarterly profit, shares jump"},"content":{"rendered":"

FireEye reports first-ever adjusted quarterly profit, shares jump<\/span><\/strong><\/span><\/h2>\n

Cyber security firm FireEye Inc (FEYE.O) on Thursday reported its first-ever quarterly adjusted profit since going public in 2013, highlighting gains from the company\u2019s shift to a subscription model and its cost-cutting efforts.<\/span><\/p>\n

FireEye\u2019s shares were up 13.2 percent in extended trading.<\/span><\/p>\n

The company reported a profit of 1 cent per share for the fourth quarter ended Dec. 31, compared with analysts\u2019 average estimate of a net loss of 1 cent.<\/span><\/p>\n

Subscription and services business rose 8.5 percent to $164 million in the quarter as the company transitions to a software-as-a-service model (SaaS) from its traditional business that centered around the sale of hardware boxes.<\/span><\/p>\n

\u201cWe delivered year-over-year and sequential growth in every major product group and geographic region, and we closed a record number of transactions greater than $1 million,\u201d Chief Executive Officer Kevin Mandia said in a statement.<\/span><\/p>\n

The company reported adjusted billings of $242.2 million, topping analysts\u2019 estimate of $221 million, according to research firm FactSet.<\/span><\/p>\n

Billings include revenue recognized plus the change in deferred revenue – an important indicator of the health and visibility of a company\u2019s business.<\/span><\/p>\n

Susquehanna analyst Anne Meisner said the deferred revenue mix indicates perhaps some continued contraction in contract lengths as the company\u2019s revenue mix shifts more toward SaaS and other subscription-based products.<\/span><\/p>\n

The company, which has probed some of the biggest cyber attacks to date including the Equifax breach, has also kept a tight leash on costs.<\/span><\/p>\n

\u201cAt the end of (2016), we really realigned our cost structure. By doing so, we were able to take out $94 million of full-year operating expenses,\u201d Chief Financial Officer Frank Verdecanna told Reuters.<\/span><\/p>\n

The Milpitas, California-based company said it expected to report between breakeven and earnings of 4 cents per share for the full-year, compared with analysts\u2019 estimate of a net loss of 2 cents.<\/span><\/p>\n

FireEye also said it expected revenue in the range of $815 million to $825 million, above estimates of $799.3 million, according to Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n

FireEye said net loss attributable to shareholders widened to $77 million, or 42 cents per share, in the fourth quarter from $61.5 million, or 37 cents per share, a year earlier.<\/span><\/p>\n

The quarter included payment of $12.5 million in net legal settlement costs, the company said.<\/span><\/p>\n

Total revenue rose 9.5 percent to $202.3 million, beating analysts\u2019 estimate of $193.6 million.<\/span><\/p>\n

Source:-\u00a0https:\/\/www.reuters.com\/article\/us-fireeye-results\/fireeye-reports-first-ever-adjusted-quarterly-profit-shares-jump-idUSKBN1FS388<\/span><\/p>\n

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