FireEye Unveils Visa Collaboration; Sees Positive Cash Flow By Mid-FY16

FireEye Inc FEYE gained about 2.7 percent in extended trading Wednesday after it unveiled a collaboration with Visa Inc V and said separately it will be cash-flow positive by mid 2016.

FireEye unveiled the Visa collaboration and offered an outlook at a meeting with analysts in San Francisco at 4 p.m. ET.

FireEye changed hands recently at $49.50, up 3.8 percent in the premarket; As of Wednesday's closing bell, FireEye shares had gained nearly 6 percent in the past week.

Visa was unchanged recently at $68.95.

FireEye forecast that it will achieve positive operating cash flow by mid 2016 and begin posting adjusted operating profit by late 2017.

For the year ending December 2016, Wall Street expects an adjusted loss of $1.38 a share.

Financial terms for the Visa collaboration, also outlined for analysts, weren't disclosed.

In the Visa collaboration, FireEye said it will operate a Web-based service to provide information about attacks.

The collaboration aims to develop tools and services that may guard against cyber attacks targeting payment data.

FireEye said the service will offer "significant improvement" over current industry practices of sharing information about threats via e-mail or other documents.

FireEye and Visa will continue to work together, to add additional services tailored to issuers and merchants of all sizes.

"The threat environment for merchants is more hostile than we've ever seen," FireEye Chief Executive David G. DeWalt said in a statement.

The new service will "minimize the impact of attacks by sharing information," according to DeWalt.

Visa is currently "leading efforts to render stolen data useless through smart technologies," according to Visa Chief Executive Charles W. Scharf.

But "data security remains foundational for merchants," Scharf added in a statement.