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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.

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.


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Results for feye
DailyStockPicks
25 Oct 14 21:35:55
#virtualreality headsets will be the consumer tech gadget for 2015. $FEYE investors find out how to profit here: http://t.co/UGK1Sij9xy
Roger
25 Oct 14 19:11:50
RT @StockSignaling: Movers and Shakers: $SODA $NLNK $YELP $FEYE $CIEN $NFLX $DF $OREX $CSIQ $LIVE $BBRY $SCOK $IBIO $KBH $X http://t.co/Vtx…
Karl
25 Oct 14 18:03:12
RT @StockSignaling: Movers and Shakers: $SODA $NLNK $YELP $FEYE $CIEN $NFLX $DF $OREX $CSIQ $LIVE $BBRY $SCOK $IBIO $KBH $X http://t.co/Vtx…
Yale
25 Oct 14 18:02:43
RT @StockSignaling: Movers and Shakers: $SODA $NLNK $YELP $FEYE $CIEN $NFLX $DF $OREX $CSIQ $LIVE $BBRY $SCOK $IBIO $KBH $X http://t.co/Vtx…
Stock Signaling
25 Oct 14 18:01:30
Movers and Shakers: $SODA $NLNK $YELP $FEYE $CIEN $NFLX $DF $OREX $CSIQ $LIVE $BBRY $SCOK $IBIO $KBH $X http://t.co/Vtx6dLy0Nw #finance #dow
Stockaholics
25 Oct 14 11:55:40
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $RHI $KMX $FEYE
wininstocks2014
25 Oct 14 08:52:43
FEYE 31.51 Stock Charts $FEYE FireEye Inc. (NASDAQ) Last Updated: 10/25/2014 10:52:43 FEYE Stock Chart - 1 Mon http://t.co/bcmsiEALUH
Stocks News&Markets
25 Oct 14 08:20:28
Nate made $1,143 on $FEYE -Check it out! http://t.co/j7SG1cauoB Learn #howtotrade http://t.co/axK8SMSgo9 $DRIV $AMDA $ISR $BJRI $HVB
♫♪ Soul Girl ♪♫
25 Oct 14 03:03:37
RT @ACInvestorBlog: Stocks to Watch for October 27, 2014 http://t.co/yry7OYhm94 $AAPL $EXC $FEYE $ISNS $KKD $MELA $VHC
Antonio Costa
25 Oct 14 01:57:23
Stocks to Watch for October 27, 2014 http://t.co/yry7OYhm94 $AAPL $EXC $FEYE $ISNS $KKD $MELA $VHC
Shomik Ghosh
25 Oct 14 01:01:33
RT @WallStJesus: $FEYE sweep 3000 FEYE Fri 11/7 32.0 Calls $1.70 ASK -- IV=90.1% +3.9
Fahd El
24 Oct 14 17:09:18
overal good day, traded a bit 2 much tho. $AAL $ALK $APT $ESI $ETE $FB $FEYE $HDSN $ISIS $ISR $MACK $RGLS $SODA $TWTR http://t.co/2prN15vF91
DerKomizar
24 Oct 14 17:07:35
Grabbed some $RUBI $FEYE and $AAPL today for a Swing
Fahd El
24 Oct 14 16:57:51
$FEYE 1st was short biased,good I changed when seeing it was banging to break out at .10 http://t.co/HLunZl1SAg
DerKomizar
24 Oct 14 14:08:35
@livetradepro You like $CYBR more than $FEYE? Hmmm..., I liked that after CYBR's pop when it sold off FEYE kept going today
Stockaholics
24 Oct 14 13:37:27
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $RHI $KMX $FEYE
Alex Liauska
24 Oct 14 13:05:29
$FEYE Gorgeous performance today. Kudos to those who got in early. Have a nice weekend guys. I will be tweeting my weekly results soon.
Mark L. Morelli
24 Oct 14 13:04:36
How Does #Hacking Affect #Consumers? $FEYE $HD $JPM http://t.co/NOkga8I4d5 via @benzinga
Alex Liauska
24 Oct 14 12:56:36
Do not sell $FEYE, people are just taking their profits before the close. I will re-enter on monday, when the price will be the best.
Pacifico619
24 Oct 14 12:44:56
@RedDogT3 Are you staying long $CYBR . What do you think of $FEYE thax.
Pacifico619
24 Oct 14 12:42:21
@ToPNoTCH_954 $FEYE looks promising into ER. We just need $SPY to reclaim and hold 50ma.
US_proptrader
24 Oct 14 12:41:19
$ACHN $ALIM $CDK $CLF $FEYE $NYT $OREX $PE $VNDA autocharts @ http://t.co/hj7PGeTQk3
Antonio Costa
24 Oct 14 12:39:05
$FEYE GO GO GO !!!! 32 around the corner
Antonio Costa
24 Oct 14 12:22:24
$FEYE feel the power ...
RC
24 Oct 14 12:21:26
Nice move from $FEYE here
Antonio Costa
24 Oct 14 12:06:40
$FEYE 32's B4 the close ?
Calup Snider
24 Oct 14 12:05:51
$FEYE forming cup. May make a run towards HOD before close.
Calup Snider
24 Oct 14 11:55:56
Down to $FEYE. Like it as long as it's above 50 day. A bit of room to run until next major resistance. Doesn't like to behave, though.
Antonio Costa
24 Oct 14 11:39:58
$FEYE eod run !!
Large Void Bot
24 Oct 14 11:00:13
Popular: $FEYE, $IAU, $BND, $AGN, $ABX, $ISIS, $QCOM, $CUDA
Alex Liauska
24 Oct 14 10:53:08
$FEYE is getting below the keltner channel. Sold my position, might get back to it later. http://t.co/dqBxcHeNSW
DailyStockPicks
24 Oct 14 10:52:56
During this #Ebola outbreak, $FEYE investors will also want to buy $SMED. They handle medical and hazardous waste http://t.co/vTV3wPBONo
garabato
24 Oct 14 10:51:56
RT @ACInvestorBlog: $FEYE On October 16th, J.P. Morgan analyst Sterling Auty upgraded the rating from Neutral to Overweight and reiterated…
RC
24 Oct 14 10:50:56
RT @randadtrade: @ACInvestorBlog $FEYE is a sleeper waking up.
randall millard
24 Oct 14 10:50:19
@ACInvestorBlog $FEYE is a sleeper waking up.
stockblaster14
24 Oct 14 10:44:48
Fireeye Inc (FEYE) 31.06 $FEYE Upcoming Conference Calls, Financial Results, Recognitions, and Collaborations http://t.co/DWJqSRuHRR
Antonio Costa
24 Oct 14 10:43:25
$FEYE On October 16th, J.P. Morgan analyst Sterling Auty upgraded the rating from Neutral to Overweight and reiterated the $54 price target
Les
24 Oct 14 10:43:10
$FEYE @MoenchArt what did I tell ya. LOL
Antonio Costa
24 Oct 14 10:42:12
$FEYE wants 32's
UplandsWealthAgency
24 Oct 14 10:41:10
RT @ACInvestorBlog: $FEYE Up up an away !!
Alex Liauska
24 Oct 14 10:41:06
$FEYE next resistance at about 33.6
Antonio Costa
24 Oct 14 10:40:22
$FEYE Up up an away !!
21J DayTrades
24 Oct 14 10:39:38
$FEYE showing movement
Antonio Costa
24 Oct 14 10:37:40
$FEYE Short Percent of Float 18% or 18M shares with a short ratio of 2.4
GinFizzBear
24 Oct 14 10:37:38
@gapandyap what is your hot take / tgt on $FEYE ? pelicans are in.
Antonio Costa
24 Oct 14 10:35:32
$FEYE next resistance level lies at 33.62 (100EMA)
Antonio Costa
24 Oct 14 10:34:39
$FEYE go baby go !!!
RC
24 Oct 14 10:33:49
$FEYE getting up here #long
US_proptrader
24 Oct 14 10:33:18
$ACTG $ALJ $ESI $FEYE $KN $MACK $PGNX $SID $WTW autocharts @ http://t.co/hj7PGeTQk3
Eternity101
24 Oct 14 10:29:05
RT @ACInvestorBlog: $FEYE wants nHOD .......Looks like it's time to squeeze some shorts.
				
				
By  +Follow September 19, 2013 2:12PM
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