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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
Scott Spencer
21 Dec 14 06:08:09
$FEYE $32.82 RT @MarkMcCisco Spending on #cybersecurity projected to jump 40% to $42B by 2017, says @BloombergMrkts. ride the wave via $HACK
Mark McCabe
21 Dec 14 04:26:02
RT @zozotrader: $FEYE $HACK $CYBR How the US is losing the escalating cyber-war http://t.co/XTME2b7qdY via @nypost
ZOZO
21 Dec 14 04:06:56
$FEYE $HACK $CYBR How the US is losing the escalating cyber-war http://t.co/XTME2b7qdY via @nypost
gunguy
20 Dec 14 23:54:42
$FEYE has been consolidating since May and is now breaking out. The recent cyber attacks the US has been experiencing is fueling this stock.
Mark McCabe
20 Dec 14 21:28:38
RT @zozotrader: $FEYE 60 min chart 34.00 has been a wall $HACK the etf for cyber security plays http://t.co/MNgrMyOOOW
Mark McCabe
20 Dec 14 21:27:25
RT @NineTrades: $FEYE breaking out http://t.co/6FKRGZYot7
CaliTrades
20 Dec 14 21:20:19
RT @HedgeBound: I am short several lots of $FEYE Jan $30 Puts. I like the bottoming action. It is what I look for Day In/Day Out. Bullish C…
Boardwalk Securities
20 Dec 14 19:58:28
RT @MichaelRubinCOM: Today @BoardSecurities and I are cheering for $FEYE!!!!! I added under $28 just a few days ago and it's now above $33…
TrendSetterTrader
20 Dec 14 18:23:43
RT @hedgefundclone: $FEYE, FireEye has a great chart, breaking out of a huge base the stock has no resistance until $50 or $60 http://t.co…
BillionairesPort
20 Dec 14 18:22:45
$FEYE FireEye really looks interesting here would love to hear anyone's comments who are in the web security biz on this company
BillionairesPort
20 Dec 14 18:18:12
With Internet security breaches, web hacking becoming an everyday issue ($SPLS Staples and $SNE Sony) FireEye $FEYE is a great growth story
Bruce Leeroy
20 Dec 14 18:17:09
RT @hedgefundclone: Now on to the good stuff nice trade here, $FEYE , a start up web security firm FireEye, was hired by Sony to clean up t…
BillionairesPort
20 Dec 14 18:16:27
$FEYE, FireEye has a great chart, breaking out of a huge base the stock has no resistance until $50 or $60 http://t.co/KfT4WQ4yY5
BillionairesPort
20 Dec 14 18:15:18
Now on to the good stuff nice trade here, $FEYE , a start up web security firm FireEye, was hired by Sony to clean up their hacking issue
Alvan Duckworth
20 Dec 14 17:51:06
$FEYE breaking out http://t.co/6FKRGZYot7
SBR China
20 Dec 14 17:47:08
RT @BookTharp: Are you Bearish on these #stocks $RGLD $EGN $NYCB $FEYE #financialnews http://t.co/KagroWZPcI
Stockaholics
20 Dec 14 16:42:04
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $RHI $KMX $FEYE
Eunice Thompson
20 Dec 14 16:19:58
$FEYE options alone gave me over $10k in a day. You want to make bank? sign up here: http://t.co/o4ee2zYkKl. The best and the cheapest.
Eunice Thompson
20 Dec 14 16:16:29
Merry Xmas $stocks pastor. I 'm now making more money in a month than I make a year as a bio-chemist.Thanks $TSLA, $NFLX, $BBSI, $FEYE, $COP
IH News Desk
20 Dec 14 15:52:12
$FEYE Opinions Updated Saturday, December 20, 2014 6:11:25 PM $VHC $XHB $INTC $EFA http://t.co/wyBdARuxz9
IH News Desk
20 Dec 14 15:52:09
$IMSC Opinions Updated Saturday, December 20, 2014 6:11:25 PM $TVIX $MDY $SCTY $FEYE http://t.co/qs4RqPgtnb
Chad
20 Dec 14 15:21:15
@daytrend $feye 1 yr chart still looks good for more upside. What are your thoughts?
JustTradingHoy
20 Dec 14 15:17:40
$FEYE found #Obama retaliation comments interesting "at a time if our choosing". He sent a message to companies: better be ready. #Cyberwar
PolgarStocks
20 Dec 14 14:34:40
$FEYE Company Info Updated Saturday, December 20, 2014 5:07:26 PM $TSLA $ITB $BIDU $SMH http://t.co/2LLjPUgrle
Rosner Stocks
20 Dec 14 14:34:03
$BBRY Filings Updated Saturday, December 20, 2014 4:59:25 PM $HIMX $ANF $FEYE $DOW http://t.co/L3FGCazgi9
Langan Stocks
20 Dec 14 13:33:11
$SLTD News Updated Saturday, December 20, 2014 4:03:27 PM $BBRY $C $FXE $FEYE http://t.co/iC5gn9xdx4
Vincent
20 Dec 14 13:03:13
Watching $FEYE $QLYS $CYBR data/network security plays.
PsychSignal
20 Dec 14 12:53:01
Bullishness in $FEYE dropped 81.1% compared to past 48hr bullish average of 1.81 on a scale of 0-4
Scott Spencer
20 Dec 14 12:51:54
RT @VTBender: Not sure about valuation but folks in the industry very impressed it seems with CEO of $FEYE and segment obviously in the new…
Stephen Bender
20 Dec 14 12:40:04
Not sure about valuation but folks in the industry very impressed it seems with CEO of $FEYE and segment obviously in the news. @jimcramer
John L. Bair
20 Dec 14 12:23:44
RT @ACInvestorBlog: $CDTI Possible Breakout Coming ! Eyes on $BBRY , $FEYE and $NQ b4 open http://t.co/3D2KK2UBNj
Michael O'Brien
20 Dec 14 11:58:37
$feye beginning to take over the world of cyber security. Once the eps goes positive it will be too late... Bullish
Tdbryan1987
20 Dec 14 11:53:09
RT @zozotrader: $FEYE 60 min chart 34.00 has been a wall $HACK the etf for cyber security plays http://t.co/MNgrMyOOOW
IH News Desk
20 Dec 14 11:49:07
$BP Investor Opinions Updated Saturday, December 20, 2014 2:11:25 PM $FEYE $JNK $GRCU $VDSI http://t.co/I82PNN0I9r
PolgarStocks
20 Dec 14 11:32:08
$VTI Short Sales Updated Saturday, December 20, 2014 2:07:26 PM $INTC $FEYE $ETN $SMH http://t.co/ZGRFYCMBnj
Scott Spencer
20 Dec 14 10:32:37
$HACK cybersecurity ETF follows trend on $FEYE ($33 with $45pt) forensics... http://t.co/edQsctAuts
Langan Stocks
20 Dec 14 10:31:07
$TNA Company Info Updated Saturday, December 20, 2014 1:03:25 PM $FEYE $IYT $TLT $DGLY http://t.co/j8KSgoF6u8
PolgarStocks
20 Dec 14 10:31:06
$FEYE Financials Updated Saturday, December 20, 2014 1:07:25 PM $ISIS $VZ $ARIA $IBM http://t.co/dFHl8nGdPh
Richard Hargrave
20 Dec 14 10:27:03
THOUGHTS ON $FEYE, CUMULATIVE $TICK, AND THE BYU WOMEN VS PENN STATE $NCAA VOLLEYBALL FINAL TONIGHT, A CAT FIGHT! http://t.co/UH2rAMp4XD
TAMAYO
20 Dec 14 10:08:16
RT @JackDamn: $FEYE Daily - Same, potential basing wedge thingamabob. Mind the ATR. http://t.co/Lu410IHRwb
ZOZO
20 Dec 14 10:05:36
$FEYE 60 min chart 34.00 has been a wall $HACK the etf for cyber security plays http://t.co/MNgrMyOOOW
Einsteins AAPL
20 Dec 14 09:34:04
RT @JackDamn: $FEYE Daily - Same, potential basing wedge thingamabob. Mind the ATR. http://t.co/Lu410IHRwb
Yash
20 Dec 14 09:29:55
@danielhsqr Take a look at $FEYE. They are at the forefront of all the attacks http://t.co/98gFZ4OJvN
Syd Weedon
20 Dec 14 09:19:55
RT @crazycanuck655: Sony Hack Is A Boon For Wall St. Cybersecurity Stocks http://t.co/SEWiHepVwO $FTNT $PANW $CHKP $HACK $FEYE $CUDA #cyber…
Sunrise Trader
20 Dec 14 09:17:29
@TradeTexasBig @cperruna add 'em to the list $FEYE
Stockaholics
20 Dec 14 09:12:44
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $RHI $KMX $FEYE
IH News Desk
20 Dec 14 08:46:04
$EBAY Financials Updated Saturday, December 20, 2014 11:11:24 AM $GGAL $FEYE $DBC $SVXY http://t.co/iz6T1fxfDC
RickLejeune
20 Dec 14 08:42:11
Sony Hack Is A Boon For Wall St. Cybersecurity Stocks http://t.co/SEWiHepVwO $FTNT $PANW $CHKP $HACK $FEYE $CUDA #cybersecurity #stocks
OPTIONS/STOCK EXPERT
20 Dec 14 08:21:04
$FEYE Dec19, 26000 CALLS TRADED YSTRDAY VS 5800 PUT, 33 CALLS HAD MOST VOLUME #OPTIONS FLOW $$
Jack Damn
20 Dec 14 07:56:48
$FEYE Daily - Same, potential basing wedge thingamabob. Mind the ATR. http://t.co/Lu410IHRwb
				
				
By  +Follow September 19, 2013 2:12PM
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