FireEye Shares Plummet Following Q1 2014 Earnings Release
FireEye (NASDAQ: FEYE) shares are trading down ~25 percent thus far on Wednesday following the release of its Q1 2014 financial results on Tuesday.
On a conference call, CEO David Dewalt commented that the decline in share price over the past months may be due to anxiety brought on by the lock-up expiration on March 19, 2014. In an attempt to subdue this possible anxiety, Dewalt further commented that the top three management do not have plans to sell.
In addition to its earnings release, FireEye also announced an agreement to acquire nPulse Technologies, a leader in network forensics. Speaking on the acquisition Dewalt said, "Like FireEye and Mandiant, nPulse is a pioneer and innovator in cybersecurity, and we are looking forward to welcoming the team to the FireEye family."
Q1 2014 Results
First quarter billings of $99.2 million solidly beat prior guidance of $84 - $88 million. Total billings was comprised of $26.1 million in product billings, $39.4 million in product subscription billings, $18.0 million in professional services billings and $15.7 million in support and maintenance billings.
Total first quarter revenue came in at $74 million which is above previous guidance of $70 - $72 million. Total revenue contained $24.3 million of product revenue, $22.8 million of subscription product revenue, $16.2 million of professional services revenue and $10.8 million of support and maintenance revenue.
Deferred revenue at the end of the quarter totaled $212.7 million, which is an increase of $25.2 million since December 31, 2013. Current deferred revenue increased $10.9 million since December 31, 2013 to $121.4 million. Finally, long-term deferred income was $91.3 million after an increase of $14.3 million since December 13, 2013.
GAAP net loss
For the first quarter the GAAP net loss was $101.2 million, which translates to $0.76 per share based on a 134 million weighted average of shares outstanding. In comparison, GAAP net loss for first quarter 2013 was $27.0 million or $1.78 per basic and diluted share based on 15.2 million weighted average shares outstanding.
non-GAAP net loss
For the first quarter the non-GAAP net loss was $71.4 million which equates to $0.53 per basic diluted share which was within previously issued guidance of $0.51 to $0.56.
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