logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

IPO Report: FireEye (FEYE)

By  +Follow September 19, 2013 2:12PM
Share:
Tickers Mentioned:

FireEye ($FEYE) invented a purpose-built, virtual machine-based security platform that provides real-time protection to enterprises and governments worldwide against the next generation of cyber attacks.

FEYE is one of nine IPOs are scheduled for this week, 12 for next week. The full IPO calendar can be found at IPOpremium

FEYE is based in Milpitas, CA, and scheduled a $182 million IPO with a market capitalization of $1.5 billion million at a price range mid-point of $13, for Friday, September 20, 2013.

The S-1 was filed September 9, 2013.  Manager, Joint Managers: Morgan Stanley; Goldman; J.P. Morgan; Barclays.  Co-Managers: BofA Merrill LynchUBS Securities/ Nomura

Summary

For the six months ended June 2013 revenue reached $62 million, with 48% from subscriptions. Losses reached-$63 million from $14 million in the year earlier period.

Operating expenses increased from $13.5mm to $63.5mm for June '13 vs June '12

 

2010 yr

2011 yr

2012 yr

June 6 mos '12

June 6 mos '13

Revenue % chg vs prior period

183%

144%

 

107%

Valuation

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

June '13 12 mos

Cap (mm)

Sls

Erngs

BkVlue

TanBV

in IPO

FireEye

$1,512

12.2

-12.0

11.8

12.4

12%

             

Glossary

Accumulated deficit of -$170 million.

FEYE appears to be in a sweet spot as long as it invests heavily in sales, marketing and product development, which is what that are doing.

The high cost of customer acquisition is a concern, the market appears very large, and FEYE appears to be targeting early adopters.

Conclusion
Buy on the IPO. FEYE is a high risk investment that might pay off. In this stock market top line revenue growth with a branded product/service (especially a subscription service) is highly valued.

Business
FEYE invented a purpose-built, virtual machine-based security platform that provides real-time protection to enterprises and governments worldwide against the next generation of cyber attacks.

FEYE's technology approach represents a paradigm shift in how IT security has been conducted since the earliest days of the information technology industry.

The core of FEYE's purpose-built, virtual machine-based security platform is virtual execution, or MVX, engine, which identifies and protects against known and unknown threats that existing signature-based technologies are unable to detect.

The new generation of cyber attacks on organizations, including large and small enterprises and governments worldwide, is characterized by an unprecedented escalation in the complexity and scale of advanced malware created by criminal organizations and nation-states.

Marketing & Sales
FEYE's sells the majority of its products, subscriptions and services to end-customers through distributors, resellers, and strategic partners, with a lesser percentage of sales directly to end-customers.

Customer concentration
Accounts receivable
As of December 31, 2011, two customers represented 23% and 16% of gross accounts receivable.

As of December 31, 2012, two customers represented 14% and 10% of gross accounts receivable.

As of June 30, 2013, two customers represented 18% and 12% of gross accounts receivable.

Revenue
During the year ended December 31, 2010, two customers represented 12% and 12% of total revenue.

During the year ended December 31, 2011, one customer represented 12% of our total revenue. During the year ended December 31, 2012, one customer represented 10% of total revenue.

During the six months ended June 30, 2012, two customers represented 14% and 11% of total revenue.

During the six months ended June 30, 2013, two customers represented 11% and 10% of total revenue.

Intellectual Property
FEYE has five U.S. issued patents and 43 patent applications pending in the United States. FEYE also has a number of foreign counterparts of these patent applications, consisting of two pending applications under the Patent Cooperation Treaty, a pending application in the European Patent Office and another in Japan.

Issued patents expire between 2025 and 2030. FEYE has five U.S. issued patents and 43 patent applications pending in the United States.

FEYE also have a number of foreign counterparts of these patent applications, consisting of two pending applications under the Patent Cooperation Treaty, a pending application in the European Patent Office and another in Japan.

Competition
Current and potential future competitors fall into five general categories:

large networking vendors such as Cisco and Juniper that may emulate or integrate features similar to FEYE's into their own products;

large companies such as Intel, IBM and HP that have acquired large IT security specialist vendors in recent years and have the technical and financial resources to bring competitive solutions to the market;

independent security vendors such as Sourcefire (which recently announced its pending acquisition by Cisco), Palo Alto Networks and Trend Micro that offer products that claim to perform similar functions to FEYE's platform;

small and large companies that offer point solutions that compete with some of the features present in FEYE's platform; and

providers of traditional IT security solutions, such as Symantec, that we may compete with in the future.

5% stockholders pre-IPO
Sequoia Capital Entities, 21.1%
Norwest Venture Partners Entities, 20.3%
Ashar Aziz, 10.6%
DAG Ventures Entities, 10.2%
JAFCO Technology Partners Entities, 7.4%
SVB Entities, 6.2%

Use of Proceeds
FEYE expects to net $166 million from its IPO. Proceeds are allocated to working capital and general corporate purposes.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for feye
Jon Vince
31 Oct 14 18:55:22
RT @sellhalf: FireEye to Announce Third Quarter 2014 Financial Results on November 4, 2014. $FEYE http://t.co/gVD0BRFmqT
ⓢ
31 Oct 14 18:43:34
FireEye to Announce Third Quarter 2014 Financial Results on November 4, 2014. $FEYE http://t.co/gVD0BRFmqT
Stock Signaling
31 Oct 14 18:01:25
Movers and Shakers: $CODE $AMBA $TASR $SN $YHOO $SODA $NLNK $YELP $FEYE $CIEN $NFLX $DF $OREX $CSIQ $BBRY http://t.co/Vtx6dLy0Nw #spy #stock
TV_Trading Ideas
31 Oct 14 16:50:30
At interesting junction here. $FEYE http://t.co/XmJhOMfndc
Scott Fraser
31 Oct 14 16:03:10
$FEYE I'm long since sub 30....GO FireEye!!
L H Wood
31 Oct 14 14:20:11
RT @jbooton: #FireEye sales expected to slow for the fourth straight quarter. What to expect in $FEYE #earnings: http://t.co/2YVrW6MIZO
Antonio Costa
31 Oct 14 14:12:41
$FEYE Daily short sale volume over the last month http://t.co/mgzV2G9aF0
Selling_Options
31 Oct 14 14:09:03
Summary of open trades - So far in the money $AMZN $CAT $COH $CR $F $FB $PSMT $PCLN $SBUX $TSLA $FEYE $BIDU $PNRA $CSCO Losing - $P $MCD $V
Jennifer Booton
31 Oct 14 13:52:53
#FireEye sales expected to slow for the fourth straight quarter. What to expect in $FEYE #earnings: http://t.co/2YVrW6MIZO
kenr0966
31 Oct 14 13:51:39
RT @drewmistak: Today's trades: $DUST calls +300% $CME calls +40% $FEYE calls +25% $CECO calls +25%
Laurie
31 Oct 14 13:12:00
RT @cvpayne: My stocks you were worried about $TQNT $FEYE $MELI $OUTR $FCEL act better Scorecard tonight on #Makingmoney PS:Grin & bear e…
Don Paquette
31 Oct 14 13:07:23
@WrigleyTom Tuesday $FEYE
Hit The Bid Radio
31 Oct 14 13:04:35
I think being sick since last week help me trade. meaning I did not trade anything and held it all. Genius!!! $QQQ $AA $X $FEYE $SPCB
Cutlass
31 Oct 14 13:04:09
RT @drewmistak: Today's trades: $DUST calls +300% $CME calls +40% $FEYE calls +25% $CECO calls +25%
Leilani Pips
31 Oct 14 13:03:28
RT @drewmistak: Today's trades: $DUST calls +300% $CME calls +40% $FEYE calls +25% $CECO calls +25%
Drew Mistak
31 Oct 14 13:01:38
Today's trades: $DUST calls +300% $CME calls +40% $FEYE calls +25% $CECO calls +25%
Charles V Payne
31 Oct 14 12:53:35
My stocks you were worried about $TQNT $FEYE $MELI $OUTR $FCEL act better Scorecard tonight on #Makingmoney PS:Grin & bear energy names RT
dominic
31 Oct 14 11:43:39
$IMPV been pushing this since 25... am taking profits here. and selling $GPRo as well. Am guying $FEYE stk looking to gap up big
Pacifico619
31 Oct 14 11:41:16
@ToPNoTCH_954 I hear you , congrats. I had a great Oct. with $FEYE $BABA $SWKS $MU on that SPY dip and today $GPRO . GL
Kym L
31 Oct 14 11:40:51
Tuesday earnings: $AKS $AWAY $BABA $CTRP $CVS $DISH $DVN $EL $EMR $EOG $FEYE $FOSL $FOX $FRGI $FSTR $GDP $ICE $IEP $IP $ISIS $JAZZ $JIVE ++
Pacifico619
31 Oct 14 11:09:59
$FEYE sold but keeping a small position for ER.$SPY AT highs just raising some cash.
Anthony DePaola
31 Oct 14 10:59:17
$FLEX up 9% since reporting #earnings; transacts business w/ almost every major cyber-security firm. $panw, $feye, $ftnt, are a few
Extreme Stocks
31 Oct 14 10:43:42
Jake13: $FEYE Barchart Opinion Click here to find out if http://t.co/VBBAwiTd1A
lookn4wins
31 Oct 14 10:30:10
$SO 200 Simple Moving Average $SO Most recent stock chart and technical analysis. $EPI $FEYE $HAL $TLT $GOOG $ http://t.co/aHq454XOBY
Investors Hangout
31 Oct 14 10:26:13
Jake13: $FEYE Barchart Opinion Click here to find out if http://t.co/Dd3YB8rCQV
Investors Hangout
31 Oct 14 10:26:11
Jake13: $FEYE Barchart Opinion Click here to find out if http://t.co/KIYlB04W2K
OTPicks.com
31 Oct 14 10:25:40
http://t.co/hjgLwIcNgz Jake13: $FEYE Barchart Opinion Click here to find out if: Jake13 http://t.co/lsCYNSqXAj http://t.co/hjgLwIcNgz
OTPicks.com
31 Oct 14 10:25:35
http://t.co/QkCFZ8H3V8 Jake13: $FEYE Barchart Opinion Click here to find out if: Jake13 http://t.co/AuoxQDWAil http://t.co/QkCFZ8H3V8
Seth
31 Oct 14 10:22:02
$FEYE running away
Stockaholics
31 Oct 14 10:18:33
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $RHI $KMX $FEYE
Jake13
31 Oct 14 10:17:07
$FEYE Barchart Opinion Click here to find out if $FEYE is a buy hold or sell. Watching these stocks. $DGAZ $TA http://t.co/DIDjCEa7CN
Dan
31 Oct 14 10:06:08
$FEYE intra day break http://t.co/BP8CLJlFuG
Hit The Bid Radio
31 Oct 14 10:04:30
$WLT take a look at $FEYE this is a stock that knows how to come back from the dead. I see 42.91 coming ride em cowboy
Travis Casner
31 Oct 14 10:03:18
$FEYE starting to run, don't see much resistance overhead until 40 area
trader j
31 Oct 14 10:01:25
Should bust through $35 very soon $feye (wed PReMkt high $34.91)
oversubscribed
31 Oct 14 09:57:48
$FEYE catching a bid. options also acting well
TV_Trading Ideas
31 Oct 14 09:57:13
Cup and Handle $FEYE http://t.co/DLrhrFL0Qu
dimi prophete
31 Oct 14 09:55:18
Happy I bought $FEYE at 34 http://t.co/5YzOx3PUsc
TV_Trading Ideas
31 Oct 14 09:54:17
Break Out Buy Signal $FEYE http://t.co/EE4muqYBjn
US_proptrader
31 Oct 14 09:50:32
$AXAS $EXXI $FEYE $PDCE $PEIX $SFY $SYRG $WNC $WPX autocharts @ http://t.co/hj7PGeTQk3
Hit The Bid Radio
31 Oct 14 09:50:09
so at every market high people will say "now you want to start buying stocks?" Hard to add here so just holding $QQQ $AA $FEYE $SPCB $X
Quang Doan
31 Oct 14 09:48:20
$FEYE target 41 after earning.
Andy Lewis
31 Oct 14 09:45:15
Trimmed some $FEYE DEC 31 calls @4.70 +95%....holding rest into EPS
Travis Casner
31 Oct 14 09:42:02
$FEYE starting to come out of range, nice flag going on the 5 minute
DailyStockPicks
31 Oct 14 09:19:23
#Ebola revenues for $LAKE announced. $SMED has 4 ways Ebola positively impacts their bottom line: http://t.co/vxKje2CxK4 $GRPN $FEYE $CEF
Jared
31 Oct 14 09:02:23
@murphyrosecliff @RiskReversal $feye signed another big client, Verizon this week. Continues to gain more and more business.
Roger
31 Oct 14 08:52:06
RT @StockSignaling: Upgraded Stocks Active in Pre-Market: $YRCW $MELI $TTWO $LOPE $FEYE $CHRW $BWLD $MSG $WMGI $ALGN $YNDX $TSCO $BIIB $TXN…
vaheelfan
31 Oct 14 08:50:41
Bot a few $feye nov puts. Thinking earnings could be a dumpster fire.
Nelson
31 Oct 14 08:32:37
RT @JDR1024: @jimcramer $FEYE has been signing up some big big clients lately. Just announced Verizon this week. No one is paying much att…
Penny Stock Secret
31 Oct 14 08:17:56
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $RHI $KMX $FEYE
				
				
By  +Follow September 19, 2013 2:12PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.