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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
12Stocks.com
1 Sep 14 03:03:22
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12Stocks.com
1 Sep 14 03:03:06
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1 Sep 14 00:23:31
RT @Honolulu_Trader: FireEye And VMware: A Marriage Made For The Clouds - FireEye, Inc. | http://t.co/jf4aZmVT6Q via @salphatrending $FEYE…
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1 Sep 14 00:01:00
RT @Honolulu_Trader: FireEye And VMware: A Marriage Made For The Clouds - FireEye, Inc. | http://t.co/jf4aZmVT6Q via @salphatrending $FEYE…
theoptiondon
31 Aug 14 22:31:26
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31 Aug 14 21:27:50
FireEye And VMware: A Marriage Made For The Clouds - FireEye, Inc. | http://t.co/jf4aZmVT6Q via @salphatrending $FEYE $SPY $QQQ $STOCKS
Stock News Guru
31 Aug 14 20:19:30
$FEYE: FireEye, Palo Alto Top Security Picks at Stifel; SYMC, CHKP, FTNT a Hold http://t.co/XRkHFUhbyJ http://t.co/oZudbzl47Z
pbera
31 Aug 14 19:50:15
HP Acquisition Targets May Include Palo Alto Networks http://t.co/m64llT46fK #IBDNews via @IBDinvestors $HPQ $PANW $FEYE $FTNT $ANET
TradeFunHealthMoney
31 Aug 14 19:16:07
HP Acquisition Targets May Include Palo Alto Networks http://t.co/dBa6a5fuSr #IBDNews via @IBDinvestors $HPQ $PANW $FEYE $FTNT $ANET
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31 Aug 14 19:08:44
$FEYE Mobile Hacking Threat Prevention w Dynamic Threat Intelligence Cloud is how its DONE Get it or get left behind http://t.co/dqsW1dzdli
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Banks admit growing cyberattack risks http://t.co/8AHiSKckk8 $FEYE $PANW
Navi Avatar
31 Aug 14 18:34:03
Earlier today I listed $TWTR and $FEYE my top picks post labor day. Now this breaking news:Nude photos of celebs leaked on Twitter by hacker
swells
31 Aug 14 18:27:00
RT @NaviAvatar1: Another HUGE hacking scandal as Nude images of celebs leaked all over internet. Strong buy $FEYE http://t.co/0m1DCngpHV $S…
Market Updater
31 Aug 14 18:19:33
$FEYE: FireEye A Reasonably Priced Growth Stock (FEYE) http://t.co/UVlKsjsWCx http://t.co/FfkPTXfffn
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31 Aug 14 18:12:25
Pharmaceuticals are Being Targeted by Advanced Cyber Attacks: http://t.co/29woINJ8lv $FEYE
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31 Aug 14 18:08:16
$FEYE http://t.co/VNUqk6DYe4
Navi Avatar
31 Aug 14 17:52:10
Another HUGE hacking scandal as Nude images of celebs leaked all over internet. Strong buy $FEYE http://t.co/0m1DCngpHV $SPY $IBM $CSCO $HPQ
PennyStock Zone
31 Aug 14 17:20:30
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Ryan York
31 Aug 14 16:50:40
RT @IBDinvestors: Does Hewlett-Packard have these recent IPOs in its sights? http://t.co/qAQzqUIEKS $HPQ $PANW $FEYE
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31 Aug 14 16:43:26
Does Hewlett-Packard have these recent IPOs in its sights? http://t.co/XoWxvqybJ6 $HPQ $PANW $FEYE
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31 Aug 14 16:38:15
IBD:Does Hewlett-Packard have these recent IPOs in its sights? http://t.co/m6YZXV2PIS $HPQ $PANW $FEYE
Evener Investment
31 Aug 14 16:36:52
RT @IBDinvestors: Does Hewlett-Packard have these recent IPOs in its sights? http://t.co/qAQzqUIEKS $HPQ $PANW $FEYE
Investors.com
31 Aug 14 16:32:18
Does Hewlett-Packard have these recent IPOs in its sights? http://t.co/qAQzqUIEKS $HPQ $PANW $FEYE
Business Headlines
31 Aug 14 15:19:30
$FEYE: Here's Why FireEye Is Sinking Despite Earnings Beat http://t.co/xi8Qe83n0G http://t.co/FJIaNIVRVW
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31 Aug 14 14:01:30
6 of Fridays Breakouts to keep on your radar next week http://t.co/5VuIQIzlIC $SPLK $RFMD $FEYE $GPRO $VEEV $TQNT
Sarah Schoonmaker
31 Aug 14 13:54:08
RT @VincentKasper: Buy list : defense contractors : $RTN, $ATK. Internet security : $PANW, $FEYE. Mega cap tech : $AAPL, $BIDU. Also like …
Vincent P Kasper Jr
31 Aug 14 13:18:21
Buy list : defense contractors : $RTN, $ATK. Internet security : $PANW, $FEYE. Mega cap tech : $AAPL, $BIDU. Also like : $F, $GS
Navi Avatar
31 Aug 14 12:52:35
Top Stocks to buy post Labor Day $AAPL $PCLN $TWTR $FEYE imho
Rick  dan
31 Aug 14 11:32:50
AVOID $SPLK $WDAY $FEYE $CSOD $NOW $YELP $Z $LNKD $FB $TWTR $SSYS $DDD $ACAD $GTAT $FSLR $TSLA go down 50% or more
Rick  dan
31 Aug 14 11:31:26
wisdom_trade THe Clock is ticking now for 10% correction $TNA $SOXL $ERX $INTC $MSFT $WDC $AMAT $SNDK $YELP $GPRO $AMZN $FB $TWTR $FEYE
Business Headlines
31 Aug 14 11:19:31
$FEYE: RJ calls FireEye, Fortinet potential H-P M&A targets http://t.co/0kBA5zSxMs http://t.co/YXIaIhnhLQ
Market Headlines
31 Aug 14 10:19:31
$FEYE: Most Active Stocks Coverage: FireEye Inc (NASDAQ:FEYE), Glu Mobile Inc ... http://t.co/6eB4kxBRzn http://t.co/3tlNTQ8Mzy
Monch
31 Aug 14 09:42:15
HP Acquisition Targets May Include Palo Alto Networks http://t.co/zYJlzNYRlZ #IBDNews vía @IBDinvestors $HPQ $PANW $FEYE $FTNT $ANET
Options Gains
31 Aug 14 09:23:07
“@Taarriqq: $TWTR $FEYE $GPRO $FB $SPLK $SPY $QQQ $DIA big 15-25% move in 4-5 days since our analysis https://t.co/gkyBeFh1o2”
Nootch
31 Aug 14 08:16:30
Long $FEYE 30.06, $OPTT 1.26....on watch for next week $CETV $ARQL $CSLT $VIMC
danielo
31 Aug 14 07:59:07
$FEYE Chart - Will it attempt a break at the 50 MA? http://t.co/E3FiIrTbov via http://t.co/FLReGzoNI2
danielo
31 Aug 14 07:32:22
$FEYE Come Tuesday, I am a buyer of this bad boy
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31 Aug 14 07:23:05
$RALY, $SPLK, $COUP, these stocks were pretty strong Fri. They're worth watching next week. I also like $FUEL, $ARWR, $FEYE, $ECYT, $BLOX.
Sarah Schoonmaker
31 Aug 14 04:59:36
RT @Honolulu_Trader: FireEye Announces Release of Incident Response & Computer Forensics, Third Edition http://t.co/zFqYHH5eMK $FEYE $SPY …
Market Compass
31 Aug 14 04:19:31
$FEYE: FireEye And VMware: A Marriage Made For The Clouds http://t.co/Ba7NEYVzON http://t.co/aXtLnxJR9Z
ollielindsay
31 Aug 14 04:03:20
RT @Honolulu_Trader: FireEye appoints Blue Power Tech. http://t.co/GzvFe3DmSz $FEYE $SPY $QQQ #STOCKS
Stevie B
31 Aug 14 04:01:28
FireEye appoints Blue Power Tech. http://t.co/GzvFe3DmSz $FEYE $SPY $QQQ #STOCKS
Stevie B
31 Aug 14 03:50:14
FireEye Announces Release of Incident Response & Computer Forensics, Third Edition http://t.co/zFqYHH5eMK $FEYE $SPY $QQQ #STOCKS
Stevie B
31 Aug 14 03:43:54
Syrian Hackers Conducting Cyber-attacks Using BlackWorm RAT http://t.co/Pew6Fw5yHo via @hackread $FEYE $QQQ $SPY #STOCKS $JPM $GS $BAC
SiⓂ✪n™
30 Aug 14 18:02:15
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PennyStock Zone
30 Aug 14 17:45:44
PennyStocking DVD by Timothy Sykes http://t.co/8EKkd9Ujnt #stocks #trading #nyse $YY $NQ $CAMT $FEYE $MINE $SALE $FB $SAEX
Johnny Trades
30 Aug 14 16:47:25
RT @barronstechblog: FireEye, Palo Alto Top Security Picks at Stifel - Tech Trader Daily - Barron's $FEYE $PANW $CHKP $FTNT $SYMC http://t.…
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30 Aug 14 16:19:36
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30 Aug 14 15:19:39
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30 Aug 14 15:03:56
Last link for today to this weeks Video and bonus video on $FEYE http://t.co/h60GJWPfJ7
				
				
By  +Follow September 19, 2013 2:12PM
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