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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
US_proptrader
30 Sep 14 06:49:31
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Xristofo
30 Sep 14 06:46:41
Lets poll the network: Is $PANW better than $FEYE?
 -
30 Sep 14 06:41:47
“@samsa91: $GPRO reminds me of $FEYE earlier this year”. EXACTLY!!!
Sam Sa
30 Sep 14 06:40:20
$GPRO reminds me of $FEYE earlier this year
david doran
30 Sep 14 06:17:39
$gpro reminds me of $feye when it was in the 90's, not even the most optimist assumptions justify this price.
4-traders.com
30 Sep 14 05:15:06
FireEye : introduces new FireEye App for Splunk Enterprise http://t.co/RI6FGTYNj4 $FEYE $SPLK
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30 Sep 14 02:37:19
$VOIS gained 218.52% in less than 3 weeks, after our Penny Stock Alerts! Major Update: http://t.co/HglCNdSVSO $RHI $KMX $FEYE
Sleek Money
30 Sep 14 01:45:22
FireEye Short Interest Up 32.8% in September $FEYE http://t.co/yPiJCEgSiz
Eternity101
29 Sep 14 21:32:58
RT $FEYE No longer a momo stock . This is trading less than IPO... It is now become a show-me stock. Why bet on the promise; prove it. http
Stockaholics
29 Sep 14 20:44:07
$VOIS gained 218.52% in less than 3 weeks, after our Penny Stock Alerts! Major Update: http://t.co/HglCNdSVSO $RHI $KMX $FEYE
PennyStock Zone
29 Sep 14 19:24:17
PennyStocking DVD by Timothy Sykes http://t.co/8EKkd9Ujnt #stocks #trading #nyse $YY $NQ $CAMT $FEYE $MINE $SALE $FB $SAEX
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29 Sep 14 17:06:07
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Option Spread Trader
29 Sep 14 15:54:00
I'm gonna buy some $FEYE, but not until it gets below 30.
Stockaholics
29 Sep 14 15:41:46
$VOIS gained 218.52% in less than 3 weeks, after our Penny Stock Alerts! Major Update: http://t.co/HglCNdSVSO $RHI $KMX $FEYE
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Lucretia
29 Sep 14 14:31:26
$FEYE Wall Street Warms Up To FireEye Inc. http://t.co/5Rigg4nzgj
Thomas Collins
29 Sep 14 14:31:25
$FEYE Will Lastline Make FireEye Need A Lifeline? (FEYE) http://t.co/hiDZzYi0nn
Bob Lang
29 Sep 14 13:15:02
ummm, not really. we are down on it. Saracasm? @Chin1000000: @aztecs99 @JohnnyTrades1 Great call on $FEYE Bob!
Chin
29 Sep 14 13:09:29
@aztecs99 @JohnnyTrades1 Great call on $FEYE Bob!
Cornholio
29 Sep 14 13:05:05
@ivanhoff reminds me of $FEYE. A no touch.
firoz
29 Sep 14 12:15:27
Commented on StockTwits: I remember $FEYE how pump and dump it was . $GPRO will be the same I guess . http://t.co/9sX0dL6upr
Bob L.
29 Sep 14 12:05:35
@jimcramer $FEYE topped out around $12B. Think $GPRO getting close to peaking out there to?
Hipster
29 Sep 14 11:44:06
Following $TIBX some other software buyout candidates are $IMPV $SPLK $DATA $QLYS $FEYE
Daniel Barnett
29 Sep 14 11:34:53
@CNBCFastMoney Whats going on with $FEYE. Will it rally again? #askfast
WallStreet
29 Sep 14 11:34:43
$FCX, $LPI, $FEYE - Wall Street Takeaway: Freeport-McMoRan (FCX), Laredo Petroleum (LPI), FireEye (FEYE) - http://t.co/qI6HLxnnTx
abdel bouanani
29 Sep 14 11:10:40
$GPRO $AGIO $AAPL $FEYE Shoot out to @NaviAvatar. Calls up 1500%. Yes 1500%! Thanks for alerting BEFORE the move happens in the HYM chatroom
Vista Partners LLC
29 Sep 14 11:03:17
RT @bullriders1: $FEYE +4% $35 partnering with $SYRX IT infrastructure management to expand advanced cyber threat detection... http://t.co/…
Jack Trader
29 Sep 14 11:02:17
$FEYE Will Lastline Make FireEye Need A Lifeline? (FEYE) http://t.co/o2fgFl8hp4
US_proptrader
29 Sep 14 10:51:32
$AEGR $AMBA $CPE $EXXI $FEYE $GDP $JRJC $KOS $RADA autocharts @ http://t.co/hj7PGeTQk3
Chris Wong
29 Sep 14 10:38:21
$SPLK Coiling hard...not sure which way she wants to go but riding this one out...$NMBL $UBNT $DATA $FEYE
Mark L. Morelli
29 Sep 14 10:30:17
What Investors Need To Know About #Cybersecurity $AAPL $FEYE $HD http://t.co/wHs83J62Vt via @benzinga
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29 Sep 14 10:25:04
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Investors Hangout
29 Sep 14 10:08:25
clayton: $FEYE 31.82 http://t.co/9GZXtUJfB4
Investors Hangout
29 Sep 14 10:08:08
clayton: $FEYE 31.82 http://t.co/56JzXC9f4B
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29 Sep 14 10:07:07
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clayton
29 Sep 14 09:53:46
$FEYE 31.82 http://t.co/2iCxxicdIC
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29 Sep 14 09:45:33
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29 Sep 14 09:29:46
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TheOptionsNinja
29 Sep 14 09:07:22
Bought $FEYE $32 calls for $0.85
Investors Hangout
29 Sep 14 09:02:16
DennyT: FEYE Press Releases $FEYE $IBM $AUY $CVX $BBRY http://t.co/ZNGBp8P0Yj
Investors Hangout
29 Sep 14 09:02:16
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29 Sep 14 08:47:51
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29 Sep 14 08:35:01
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Austin Deric
29 Sep 14 07:44:07
$FEYE price action looking great on a down tape.
Fake CNBC
29 Sep 14 07:42:15
Even $FEYE just went green.
Jon Vince
29 Sep 14 07:22:38
Nice bounce in $FEYE from $31.00 low, now 32.92
Speculative Trader
29 Sep 14 07:03:00
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29 Sep 14 06:55:03
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Stock Signaling
29 Sep 14 06:31:32
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By  +Follow September 19, 2013 2:12PM
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