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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for feye
TalkMarkets
29 Mar 15 16:09:01
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Penny Stockington
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29 Mar 15 14:13:42
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29 Mar 15 13:20:10
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Krishna
29 Mar 15 10:46:03
RT @M5amhan: 03-29-15 Trade Plan http://t.co/Ii2vlaS5aS $QQQ $NQ_F $SPY $ES_F $IWM $CRM $EBAY $FEYE $FSLR $LNKD $TWTR $ABT $BMY $CI
Jim Sheetz
29 Mar 15 10:42:17
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29 Mar 15 10:39:06
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Paul Campisi
29 Mar 15 10:19:58
Possibly Monday if $FEYE opens up and goes above 40ish itll take a new trajectory higher. or opposite 3920 support http://t.co/8wmfvVSUqF
TalkMarkets Recap
29 Mar 15 10:09:01
#InsiderTrading Report Edition 249: Notable Buys And Sales $SPY $FI $PHII $OPK $SJW $ROST $MMI $JAZZ $FEYE $SLG http://t.co/SApIOXE9Vt
Taylor
29 Mar 15 09:24:38
@realboxy $NKE looks good long if holds 98.80. $FEYE don't really like either way at the moment, but definitely leaning bullish, esp <41
Jon Boorman, CMT
29 Mar 15 08:43:03
RT @M5amhan: 03-29-15 Trade Plan http://t.co/Ii2vlaS5aS $QQQ $NQ_F $SPY $ES_F $IWM $CRM $EBAY $FEYE $FSLR $LNKD $TWTR $ABT $BMY $CI
Michael Samhan
29 Mar 15 08:40:28
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Bradley
29 Mar 15 08:17:07
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OM_giveaways
29 Mar 15 08:00:21
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iHangout
29 Mar 15 07:18:08
chartguy89: 2015 Trending Stocks: FEYE +1.27% Stock Charts $FEYE FireEye Inc. http://t.co/tjPhTgkfdC
chartguy89
29 Mar 15 07:10:49
FEYE +1.27% Stock Charts $FEYE FireEye Inc. (NASDAQ) Last Updated: 03/29/2015 09:10:50 FEYE Stock Chart - 1 Mo http://t.co/eFvuS8eoui
James DiPlata
29 Mar 15 04:38:33
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Airport
29 Mar 15 04:17:20
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TalkMarkets
29 Mar 15 04:14:55
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Bradley
29 Mar 15 03:58:08
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Jim
29 Mar 15 03:33:05
RT @seeitmarket: Much About IPO Lockup Expirations: Data & Stats http://t.co/Qk3fweFtPv by @NoanetTrader $BABA $TWTR $FEYE $FB $STUDY
OM_giveaways
29 Mar 15 02:53:07
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YourPersonalTrader
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29 Mar 15 01:14:08
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Alpha Maven
29 Mar 15 00:08:43
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Jason Olive
29 Mar 15 00:03:35
RT @SeekingAlpha: Insider Weekends - March 27, 2015 http://t.co/73NNm2zj2w $PN $FI $PHII $OPK $SJW $ROST $MMI $JAZZ $FEYE $SLG
john smith
29 Mar 15 00:01:07
$FEYE - Insider Weekends - March 27, 2015 http://t.co/95VyMd5w2l
NASDAQ
29 Mar 15 00:01:07
$FEYE - Insider Weekends - March 27, 2015 http://t.co/YsRKXQyof3
FOREX Insight
28 Mar 15 23:53:24
RT @SeekingAlpha: Insider Weekends - March 27, 2015 http://t.co/73NNm2zj2w $PN $FI $PHII $OPK $SJW $ROST $MMI $JAZZ $FEYE $SLG
Alysia Sarkisian
28 Mar 15 23:51:59
RT @SeekingAlpha: Insider Weekends - March 27, 2015 http://t.co/73NNm2zj2w $PN $FI $PHII $OPK $SJW $ROST $MMI $JAZZ $FEYE $SLG
awolam
28 Mar 15 23:51:57
RT @SeekingAlpha: Insider Weekends - March 27, 2015 http://t.co/73NNm2zj2w $PN $FI $PHII $OPK $SJW $ROST $MMI $JAZZ $FEYE $SLG
Quantpost Technology
28 Mar 15 23:47:04
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Insider Stock Buys
28 Mar 15 23:47:02
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Seeking Alpha
28 Mar 15 23:47:02
Insider Weekends - March 27, 2015 http://t.co/73NNm2zj2w $PN $FI $PHII $OPK $SJW $ROST $MMI $JAZZ $FEYE $SLG
Asif Suria
28 Mar 15 22:49:55
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James DiPlata
28 Mar 15 22:06:58
RT @stocknugget: Helpful video for stock options beginners!! http://t.co/8g4lUZPHEF $GOOG $AAPL $GOOGL $AMZN $FB $FEYE $FXCM http://t.co/DN…
OM_giveaways
28 Mar 15 22:05:15
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Bradley
28 Mar 15 21:12:09
Helpful video for stock options beginners!! http://t.co/8g4lUZPHEF $GOOG $AAPL $GOOGL $AMZN $FB $FEYE $FXCM http://t.co/DNJw9hSpQM
Cody Freeman
28 Mar 15 19:39:04
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James DiPlata
28 Mar 15 18:59:52
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28 Mar 15 17:51:12
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OM_giveaways
28 Mar 15 16:38:08
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Tim H.
28 Mar 15 16:17:16
RT @TrainWreckTrade: $FEYE watching these trendlines for now, amazing how they can show levels of support, looks good for 40+, in APR 40C h…
Tim H.
28 Mar 15 16:17:06
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Clayton R.
28 Mar 15 14:19:07
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Chimp
28 Mar 15 14:19:03
RT @seeitmarket: Much About IPO Lockup Expirations: Data & Stats http://t.co/Qk3fweFtPv by @NoanetTrader $BABA $TWTR $FEYE $FB $STUDY
				
				
By  +Follow September 19, 2013 2:12PM
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