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IPO Report: FireEye (FEYE)

By  +Follow September 19, 2013 2:12PM
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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.

Results for feye
Darryl Kendal
19 Apr 14 20:13:58
Bearish or Bullish on these #stocks $BIO $AAPL $PPG $FEYE #liquidity http://t.co/AxPcoNKZVD
Ad hoc
19 Apr 14 19:50:10
@The_Real_Fly which reminds me I'll have some more $FEYE to sell you on Monday my good man
Voltaire
19 Apr 14 19:46:43
@UdallTechStrat yep $feye is simply a "hall monitor" the only unbreakable cryptography is due to go public in the next few months...
Stock007
19 Apr 14 19:32:09
@PhilipEtienne @nytimesbusiness u sure about that?? Detected by $FEYE. http://t.co/PXpytyiyJs
Brenden Black
19 Apr 14 19:03:13
Are you considering selling $LVS $RJF $LNKD $FEYE Goto http://t.co/tqfLWN26PN
Cecily Humphrey
19 Apr 14 18:27:09
$ISRG Are you looking to buy $WMB $NOW $FEYE #financialnews http://t.co/9z3CDV7ymL
Ansel Galvan
19 Apr 14 17:51:14
$COP Are you considering selling $SIRO $MOS $FEYE #moneymanagement http://t.co/DrWvDq9FJE
Financial Alerts
19 Apr 14 17:48:07
Get great research on stocks $CCI $COO $AXP $FEYE #NSE http://t.co/XKYMDwwSFG
Hans Hoskins
19 Apr 14 17:28:25
Great #Stock Newsletter on $MJN $NSM $WFC $FEYE #equity http://t.co/9mIgu0J2He
Louie O'Malley
19 Apr 14 17:24:55
$DIS Get great research on stocks $GRPN $HCBK $FEYE #NASDAQ http://t.co/XdTJHDtVPB
Sky Grady
19 Apr 14 17:22:15
Are you Bullish on these #stocks $LTD $NYX $NDSN $FEYE #StockMarket http://t.co/QoES5sFULE
Tressie Fortenberry
19 Apr 14 17:08:33
Top Performing #Stocks today $GMCR $COO $SLGN $FEYE #overvalued http://t.co/fQfFEL1ajO
Balboa
19 Apr 14 16:17:08
What disappointed clients , blatant lies from you, story doesn't even mention $FEYE ( @PhilipEtienne says More $FEYE disappointed accounts)
Ansel Gonzalez
19 Apr 14 16:15:12
$APC Wow. Great #Stock #Research on $PCYC $FITB $FEYE #singedinvestor http://t.co/kZ7ZJnldHi
Financial Alerts
19 Apr 14 15:57:33
Are you thinking of selling $RYN $CTL $MRO $FEYE Worth a look http://t.co/pc2zn8gF5b
Mind Equity
19 Apr 14 15:54:30
$TMHC Earnings news on $BEAV $VOYA $FEYE View now http://t.co/fIcJrypaiD
iHangout
19 Apr 14 15:32:10
chartguy89: Stock Charts: FEYE 47.11 Stock Charts $FEYE FireEye Inc. NASDAQ http://t.co/ycqDQnc0vd
chartguy89
19 Apr 14 15:29:18
FEYE 47.11 Stock Charts $FEYE FireEye Inc. (NASDAQ) FEYE Stock Chart - 1 Month http://t.co/hSch9OPEaY http://t.co/Tgmt2AAzb2
Darryl Kendal
19 Apr 14 15:02:43
$ARE Bearish or Bullish on these #stocks $AFL $COST $FEYE #StockMarket http://t.co/dp4jTpWHds
Sky Hunter
19 Apr 14 14:41:16
Is it breakout time on $MS $HON $CF $FEYE #Stock http://t.co/8bEaCpqln9
Financial Alerts
19 Apr 14 14:25:47
Should you buy $UNM $CR $RVBD $FEYE #equity http://t.co/yaJjqSjgWI
Teo Black
19 Apr 14 13:59:56
$AVY Is it breakout time on $INTC $ENH $FEYE Worth a look http://t.co/3qZ8roCzUl
PennyStockSage
19 Apr 14 13:06:30
Looking for the next $BEN $JAH $WSM $FEYE View now http://t.co/AklyoAtC65
Rob McGavern
19 Apr 14 13:02:55
Considering investing in $MDU $LEG $DVN $FEYE Try this http://t.co/xDLDyWa9yW
Louie O'Malley
19 Apr 14 13:01:24
$PPS Todays movers to research $MA $ADM $FEYE #NASDAQ http://t.co/udXXtq9K2M
Keon Carlisle
19 Apr 14 12:34:53
$MDT Considering investing in $MSCI $LLTC $FEYE Try this http://t.co/hQVK31JyHp
Ambrose Long
19 Apr 14 12:03:25
Are you looking for winners like $LTD $AEO $TCB $FEYE #NSE http://t.co/PpSyivrIvm
Arnulfo Adamson
19 Apr 14 11:20:02
Seeking the next stock like $GRA $DBD $AWI $FEYE #singedinvestor http://t.co/RHRbFCa0gJ
Stock Terminator
19 Apr 14 11:07:01
$SDRL Here are some Stocks to Watch $LIFE $PRGO $FEYE #newsletter http://t.co/HDbSa3ZrC9
Gold Stock News
19 Apr 14 10:34:10
Insider Trading updates on $BEN $ANAT $SLGN $FEYE #NSE http://t.co/Rk63A7Ae53
A
19 Apr 14 07:30:41
@InsiderReports @TradeTexasBig check out $REGN is insider transactions. The play forward is biotech. Not $feye $splk garbajé
Bettie Pagan
19 Apr 14 07:05:02
$VIAB Are you Investing in $FRX $EXPD $FEYE Try this http://t.co/PcTBcH1GjG
North Carter
19 Apr 14 07:04:13
#Stocks you might want to sell $PNC $WDAY $FRX $FEYE #moneymanagement http://t.co/gDqD3SYucv
Adria Mosley
19 Apr 14 06:59:03
It could be breaktout time on $UA $BIG $IM $FEYE #financialnews http://t.co/9ljv2ulTc2
Cammie Filman
19 Apr 14 06:33:31
$MGM Whats going on with $MDVN $WTM $FEYE #liquidity http://t.co/VuLQzcKYIj
Brenden Black
19 Apr 14 06:27:03
Get great research on stocks $DSW $WPO $INT $FEYE View now http://t.co/vrnPpdppd3
Keon Carlisle
19 Apr 14 06:10:45
$CR Are you looking to buy $SBH $CSC $FEYE Must see http://t.co/8bO1c4WddQ
Hans Hoskins
19 Apr 14 06:08:13
#Stock Watchlist. Dont be left behind $VNO $GXP $GE $FEYE #money http://t.co/Un36A7GpUB
Eric M. Vihlen
19 Apr 14 05:46:13
FireEye: Should You Buy on the Upgrade? $FEYE http://t.co/yEHrRMogrs via @themotleyfool
Jaydan Kyler
19 Apr 14 05:33:29
$CNW Are you Bullish on these #stocks $LNKD $TMK $FEYE Try this http://t.co/2ZEfEBbyyA
Teo Black
19 Apr 14 05:14:28
$PC Whats going on with $MET $ITW $FEYE #overvalued http://t.co/lIWIHUQOC2
Dmitri Magnuson
19 Apr 14 05:14:14
$ELS Get the latest on $WIN $BXP $FEYE I suggest http://t.co/3uIpvoRddY
Stock Terminator
19 Apr 14 05:00:59
Do you think you should hold $ADI $WOOF $AVX $FEYE #financial http://t.co/0ZnaWGsqJs
Jama Dahl
19 Apr 14 04:43:45
$CBSH Do you think you should hold $SLG $KMPR $FEYE #moneymanagement http://t.co/2dEeCySNro
Stock Market News
19 Apr 14 04:19:11
Seeking the next hot #pennystock $MCY $BMY $BKW $FEYE Try this http://t.co/JC6rEyuLK9
Cammie Filman
19 Apr 14 04:18:03
Whats going on with $SYMC $MSM $ZTS $FEYE Visit http://t.co/o0capjxJuj
Sky Hunter
19 Apr 14 04:12:52
Small-cap stocks making 52-wk highs $BAX $CNK $CHRW $FEYE #money http://t.co/Q8Owy3lbrb
North Carter
19 Apr 14 03:15:19
Small-cap stocks making 52-wk highs $L $VVC $SNPS $FEYE Check out http://t.co/DQib2stS6l
Ansel Galvan
19 Apr 14 02:43:35
$DAL Are you Bullish on these #stocks $MUR $BRK $FEYE Must have http://t.co/CGkNRzwxWw
				
				
By  +Follow September 19, 2013 2:12PM
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