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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
Stockaholics
23 Oct 14 00:49:26
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No More Captchas
22 Oct 14 18:04:14
Cyber chiefs to get salary bump amid hack threats http://t.co/FDntuygl75 $FEYE
Quantheta
22 Oct 14 17:00:01
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Quantheta
22 Oct 14 16:00:02
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$$$ Money $$$
22 Oct 14 14:30:29
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David Abramson
22 Oct 14 14:28:24
@jimcramer @MadMoneyOnCNBC what are your thoughts on $ftnt beat earnings today. What about $feye #fortinet #fireeye
Quantheta
22 Oct 14 14:00:02
#SENTISHIFTUP $EE $RSH $QUAD $YY $MS $CHK $FEYE $SHLD $IR $O #quantheta
Pacifico619
22 Oct 14 13:27:43
RT @Inbox101: $FTNT beat will boosts $IMPV and $FEYE. $FEYE will attract money from $GPRO momo traders. Money rotation + head and shoulders…
Brian Mcdone
22 Oct 14 13:26:05
RT @Inbox101: $FTNT beat will boosts $IMPV and $FEYE. $FEYE will attract money from $GPRO momo traders. Money rotation + head and shoulders…
TV
22 Oct 14 13:24:19
$FTNT beat will boosts $IMPV and $FEYE. $FEYE will attract money from $GPRO momo traders. Money rotation + head and shoulders = free fall.
ChartMasterpieces
22 Oct 14 13:01:12
"@PragmaticTrade: $GPRO Best case scenario trades like $DDD.. worst case scenario trades like $FEYE moving forward."
Calup Snider
22 Oct 14 12:02:00
Wish I would have spotted $KMI on that dip. Would have added there too. $FEYE....I'm not buying another share of this.
Quantheta
22 Oct 14 12:00:02
#SENTISHIFTUP $EE $QUAD $CHK $ILMN $IR $FEYE $SHLD $DGLY $VRTX $SCTY #quantheta
OTPicks.com
22 Oct 14 10:56:08
http://t.co/hjgLwIcNgz jim50: $FEYE High Date=Oct-22-2014 Open=30.18 High=30.8: jim50 http://t.co/cSCBerRRUt http://t.co/hjgLwIcNgz
OTPicks.com
22 Oct 14 10:56:05
http://t.co/QkCFZ8H3V8 jim50: $FEYE High Date=Oct-22-2014 Open=30.18 High=30.8: jim50 http://t.co/r1tb3tkQU8 http://t.co/QkCFZ8H3V8
Investors Hangout
22 Oct 14 10:48:13
jim50: $FEYE High Date=Oct-22-2014 Open=30.18 High=30.8 http://t.co/GiBZyeMR5Y
Investors Hangout
22 Oct 14 10:48:13
jim50: $FEYE High Date=Oct-22-2014 Open=30.18 High=30.8 http://t.co/zAC9jl8suV
Extreme Stocks
22 Oct 14 10:40:23
jim50: $FEYE High Date=Oct-22-2014 Open=30.18 High=30.8 http://t.co/K0Mp0WtSqn
jim50
22 Oct 14 10:40:08
$FEYE High Date=Oct-22-2014 Open=30.18 High=30.8 Low=29.93 Close=30.17 Volume=1125287 http://t.co/XQBpxOHaG7
leahanne
22 Oct 14 10:28:54
$SLTD Solar3D Inc (SLTD) 0.1949 +0.0004 (+0.21%) $CLF $COS.TO $FEYE http://t.co/IXckKEKWVw
Quantheta
22 Oct 14 10:00:02
#SENTISHIFTUP $EE $QUAD $CHK $IR $ILMN $BA $SHLD $DGLY $FEYE $AOL #quantheta
danrocks
22 Oct 14 09:39:35
$CREE alot of talk going around about this one $HOU.TO $SVFC $JNJ $AKRX $FEYE http://t.co/GhltLjfXCN
Stock Signaling
22 Oct 14 09:31:03
Visual Stock Comparison Tool: http://t.co/Vtx6dLy0Nw : $DF $YHOO $BBRY $AMD $IBIO $BAS $SRPT $CPE $ESI $SUNE $FEYE $NFLX $CLF $JBLU $MU #mkt
Investors Hangout
22 Oct 14 09:17:51
danrocks: $SMH On Radar $HXD.TO $MCD $FEYE $ILMN $MYEC http://t.co/v5SpegmYIR
Investors Hangout
22 Oct 14 09:17:34
danrocks: $SMH On Radar $HXD.TO $MCD $FEYE $ILMN $MYEC http://t.co/COEybTBSaj
danrocks
22 Oct 14 09:11:36
$SMH On Radar $HXD.TO $MCD $FEYE $ILMN $MYEC http://t.co/IryqUHnngd
Calup Snider
22 Oct 14 09:08:01
$FEYE is the lousiest stock I've ever traded. I usually win with it, but man does it ever test one's patience.
Read_this_n0w
22 Oct 14 09:03:08
48.15 reshorted $NUS . $SPy $INDU $AAPL $IWM $SHLD $FEYE
Options Gains
22 Oct 14 08:59:42
“@Taarriqq: $FEYE nice action, we saw calls buy last week, also posted ystrday, calls doubling almost”
Calup Snider
22 Oct 14 08:21:33
Still long $KMI from 34.2, $FEYE from 29.7, short in $SUNE 19, but not thrilled there, and new long in $CSIQ at 30.55. also not thrilled.
Les
22 Oct 14 08:19:33
$FEYE the power of on-balance volume so you can see how MM's play the game. Stochs getting O/B. http://t.co/S9McVpcyLI
Investors Hangout
22 Oct 14 08:16:35
DennyT: XLU Stock Chart $XLU $CSCO $DARA $FEYE $SOXL http://t.co/GbO0Xxlnns
Investors Hangout
22 Oct 14 08:15:39
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Investors Hangout
22 Oct 14 08:15:32
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Investors Hangout
22 Oct 14 08:15:25
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danrocks
22 Oct 14 08:10:11
$ANR Hitting Buzz $FSLR $IBM $UUP $AXP $FEYE http://t.co/BgUNzSI81G
DennyT
22 Oct 14 07:50:18
XLU Stock Chart $XLU $CSCO $DARA $FEYE $SOXL Sell?,Stock Chart,Low,News,Hit my list a few days ago Stock Quote http://t.co/lQ4YGDH07I
Lockingprofits
22 Oct 14 07:42:29
Dont u love buying the names with 0 for a PE because they have no earning sobit cant be calculated? $TSLA $TWTR $MBLY $GOGO $FEYE $SCTY LMAO
lookn4wins
22 Oct 14 07:14:19
$CMG Current Price $CMG Most recent stock chart and technical analysis. $XIV $CELG $FEYE $SPLK $HPQ $XLP http: http://t.co/QEScHRQZQk
Investors Hangout
22 Oct 14 07:13:50
DennyT: FEYE Basic Chart $FEYE $DOW $FSLR $MDR $XLK http://t.co/DOILCeHrtd
Investors Hangout
22 Oct 14 07:13:44
DennyT: FEYE Basic Chart $FEYE $DOW $FSLR $MDR $XLK http://t.co/5jZPge7kbY
Alex Salomon
22 Oct 14 07:10:32
RT @UdallTechStrat: $FEYE Great piece & pos. catalyst on my #securitysupercycle thesis... http://t.co/RMUgqz4I06
iHangout
22 Oct 14 07:07:06
http://t.co/Vv1sYDyeQn DennyT: The Hunt for the Next 10 Bagger: FEYE Basic Chart $FEYE $DOW $FSLR $MDR $XLK http://t.co/yAY3TiHo5Q
Chan
22 Oct 14 07:02:31
Cyberattacks like the one Staples experienced recently is the reason why I like hold FireEye $FEYE http://t.co/V4JM1IMo1Z
DennyT
22 Oct 14 07:00:43
FEYE Basic Chart $FEYE $DOW $FSLR $MDR $XLK Buy?,Candlesticks,Volume,Recent News,keeping this on watch Stock Q http://t.co/mnm1JsmxOC
Stock007
22 Oct 14 06:59:26
$FEYE Great piece & pos. catalyst on my #securitysupercycle thesis... http://t.co/RMUgqz4I06
Philippe P
22 Oct 14 06:59:11
Yahooo! $YHOO is on fire today! My target price is $55 also $LOCO is back up big time! $FEYE $IFON $MEET $MATR #stocks #opportunity
OPTIONS/STOCK EXPERT
22 Oct 14 06:57:55
$FEYE nice action, we saw calls buy last week, also posted ystrday, calls doubling almost
Antonio Costa
22 Oct 14 06:51:55
Watch $FEYE over 30.84 (EMA50)
Calup Snider
22 Oct 14 06:44:52
$FEYE starting to move
				
				
By  +Follow September 19, 2013 2:12PM
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