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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for feye
Quantheta
28 Nov 14 13:00:02
#SENTISHIFTDOWN $CLF $AXP $MNKD $DE $WLL $CVX $OAS $FEYE $COP $QQQ #quantheta #sentiquant
Stockaholics
28 Nov 14 12:31:01
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $RHI $KMX $FEYE
Quantheta
28 Nov 14 11:00:02
#SENTISHIFTDOWN $CLF $MNKD $WLL $FEYE $OAS $CVX $SLV $DOW $COP $QQQ #quantheta #sentiquant
Antonio Costa
28 Nov 14 09:23:31
$FEYE might bounce here
Skevaboy
28 Nov 14 09:15:06
$FEYE Data breaches now industrywide problem: Target CEO http://t.co/aQdsM5VpYM $TGT #cybersecurity
Caroline
28 Nov 14 09:00:30
$FEYE makes no sense here. but technically does not look good at all
Lauren Holmes
28 Nov 14 09:00:07
Long $BDBD, $FEYE, $HTZ, $LULU, $TWTR Read our analysis here: http://t.co/VrsGMCgPOC
Skevaboy
28 Nov 14 08:52:44
$FEYE $aapl $fb $nq $baba FYI: Market closes at 1pm
Nicole Augenti, Esq.
28 Nov 14 08:52:29
I think $FEYE will bounce be4 close. You'd have to be a FOOL to short over wkend. All it takes is one Target-type hack &d shorts are doomed
Michael Rubin
28 Nov 14 08:45:14
@BoardSecurities I just bought another 100 shares of $FEYE and I added to my stake in $TASR which I think will really do great in 2015.
Nicole Augenti, Esq.
28 Nov 14 08:15:54
Got my $FEYE $30.28 filled - I got another placed in the $29's. How low can she go?
Nicole Augenti, Esq.
28 Nov 14 08:09:00
You think I'll get my $30.28 order filled? $FEYE Shorty. Wow. Weee.
REDLEAF
28 Nov 14 08:02:14
$FEYE need that $28.70 support to hold, not looking to cover my covered calls yet.
Penny Stock Secret
28 Nov 14 07:37:38
Premium Alerts Ranked #1 For Gains 2834% Last Week http://t.co/SVqoMlijqL .. $RHI $KMX $FEYE
Jared
28 Nov 14 07:10:28
@RiskReversal Using the weakness today in $FEYE, $SCTY to buy more.
Stock007
28 Nov 14 07:09:32
$TWTR bouncy... shouldn't be too long for $FEYE full ripper now
Skevaboy
28 Nov 14 06:43:24
$FEYE Any news i missed? big drop, mmmm
Stockaholics
27 Nov 14 23:31:00
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $RHI $KMX $FEYE
Stockaholics
27 Nov 14 17:52:09
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $RHI $KMX $FEYE
Xyla Randolph
27 Nov 14 16:50:52
@HCPG - Thanks for $SCTY and $FEYE - Making up for some of my jackass trading yesterday ;)
Stockaholics
27 Nov 14 13:14:55
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $RHI $KMX $FEYE
don
27 Nov 14 11:01:29
$FEYE - http://t.co/NLIpi5OXQo http://t.co/uVomqZHXqO #stockcharts
Lauren Holmes
27 Nov 14 10:01:29
Long $BDBD, $FEYE, $HTZ, $LULU, $TWTR Read our analysis here: http://t.co/VrsGMCgPOC
Penny Stock Secret
27 Nov 14 07:34:46
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/SVqoMlijqL .. $RHI $KMX $FEYE http://t.co/KZb94DBqvi
Elo
27 Nov 14 01:54:44
RT @theflynews: Wells Fargo says $SNE hack highlights need for cybersecurity spending, $PANW $FEYE and others are best positioned: http://t…
Stockaholics
26 Nov 14 21:42:28
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $RHI $KMX $FEYE
Trudi Gary
26 Nov 14 20:00:23
Wow. Great #Stock #Research on $BWA $BHI $REG $FEYE #liquidity http://t.co/lW642DGd9L
SBR China
26 Nov 14 19:15:00
RT @CarlEvita: $TRMB Looking for the next $CLI $MAC $FEYE #financialnews http://t.co/lCqi5jEeDA
Evita Hernandez
26 Nov 14 19:05:48
$TRMB Looking for the next $CLI $MAC $FEYE #financialnews http://t.co/lCqi5jEeDA
Laurene Haddock
26 Nov 14 19:01:17
$FLO Free research on $ODFL $FSLR $FEYE #overvalued http://t.co/cyCrc1GZTd
Cami Clarke
26 Nov 14 17:10:49
Great #Pennystock #research $SNA $NKE $SNH $FEYE #singedinvestor http://t.co/YKq4WSNpLv
Geralyn Bedard
26 Nov 14 17:07:22
Find the next hot #pennystock $FII $FOSL $MO $FEYE #economy http://t.co/nrLXCBn5Dd
Stellan Tharp
26 Nov 14 16:59:51
Sick and Tired of losing money on $P $NUAN $BKU $FEYE #wallstreet http://t.co/1CcFQoEHd6
Rhona Keeling
26 Nov 14 16:49:27
Latest Earnings info on $PII $LSTR $KIM $FEYE #money http://t.co/bis1tVmrJe
Ali Tyree
26 Nov 14 16:44:58
Do you need #Stock #Research on $GAS $UTHR $GEF $FEYE Click http://t.co/TAvYvzqPuU
Ruth Patrick
26 Nov 14 16:40:59
Did you lose money on $CAG $MCHP $AWH $FEYE #Research http://t.co/J9x8EfYJaM
Suzy Runyon
26 Nov 14 16:38:28
Bad #Invesments like got you down $BMY $MO $G $FEYE #money http://t.co/8ZpvvSYB6U
Shaquita Foy
26 Nov 14 16:30:05
Do you need #Stock #Research on $FDX $NCR $MRK $FEYE #NASDAQ http://t.co/wNUTsZW35l
Lanelle Fultz
26 Nov 14 16:22:56
Would you like great research on stocks $P $WPX $NOV $FEYE #financialnews http://t.co/65uvgPNtLe
Charlotte Christman
26 Nov 14 16:19:25
Dont want to lose like you did with $SFG $FSLR $PKG $FEYE Visit http://t.co/ZouVBAXd3s
Leonie Machado
26 Nov 14 16:19:23
#Stocks you migh want to Sell $CVX $UNM $NCR $FEYE #liquidity http://t.co/teYCYO6c7X
Anne Howsham
26 Nov 14 16:16:16
Great #Stock Newsletter you must have $LGF $DISCA $SNA $FEYE Must have http://t.co/qnQnM2mSoP
Bonnie Lafleur
26 Nov 14 16:14:33
Latest information on #stocks like $WBC $RAI $PTEN $FEYE Give it a try http://t.co/Yl4o0z0zEF
Thuy Espinal
26 Nov 14 16:10:36
Couple of Stocks you should Watch $RGC $BKD $SPR $FEYE #Stock http://t.co/Qx93sFvPOl
Lettie Hatfield
26 Nov 14 16:03:57
#Stocks you might want to hold onto $GPS $RCL $K $FEYE #NASDAQ http://t.co/WamkFdCIld
Carletta Fisher
26 Nov 14 16:03:54
Should you buy, sell or hold $FRT $DDD $AAPL $FEYE #investing http://t.co/jJYHEgShL2
Lettie Hatfield
26 Nov 14 16:02:42
Are you considering buying $AVB $PKG $CST $FEYE #wallstreet http://t.co/4sd38KGLjf
Kristian Redmond
26 Nov 14 16:01:14
Couple of Stocks you should Watch $BRCD $CNX $ADSK $FEYE #NSE http://t.co/ge5mAHPeb2
Bodhi Thatcher
26 Nov 14 16:01:05
Regretting your investment in $VAL $PL $MNST $FEYE Worth a look http://t.co/5MeKnZQ81t
Foster Corral
26 Nov 14 15:59:24
Could be breaktout time on $CAB $ETN $CVA $FEYE Must have http://t.co/OFNN8Q5dkM
				
				
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.