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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
rulestocktrading
25 Jan 15 18:10:41
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Fredrick
25 Jan 15 18:10:26
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
Stock Signaling
25 Jan 15 18:01:24
Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8PN3 #daytrading #dow
Drew Killah
25 Jan 15 17:54:32
@DerrickJLeon I feel ya. I'm watching $GPRO $FEYE $MIFI $ZFGN and $EGRX
David (no relation)
25 Jan 15 17:12:52
RT @alphatrends: my VIDEO http://t.co/v8HY7mGEp7 Stock Mkt Analysis 1/23/15 $SPY $QQQ $IWM $XLF $AAPL $ORCL $RGLS $FEYE $AMZN $GPRO $NFLX
Jake Novakovich
25 Jan 15 17:04:45
@JonathanSchrage $FEYE my least favorite stock I think of all time. moves like crap intraday imo. but daily looks nice
Darren Miller, Ph.D.
25 Jan 15 16:51:00
"@alphatrends: my VIDEO http://t.co/DibKqlc3Eg Stock Mkt Analysis 1/23/15 $SPY $QQQ $IWM $XLF $AAPL $ORCL $RGLS $FEYE $AMZN $GPRO $NFLX"
Brian Shannon
25 Jan 15 16:38:49
my VIDEO http://t.co/v8HY7mGEp7 Stock Mkt Analysis 1/23/15 $SPY $QQQ $IWM $XLF $AAPL $ORCL $RGLS $FEYE $AMZN $GPRO $NFLX
10X Trading
25 Jan 15 16:00:13
Greatstockpix Day Trading Chart Setups for January 26th http://t.co/LCG6yMJTyG $FEYE $RGLS $ASPS $OCN $INFN $EOPN $EHTH $ATLS $USO
Captain John
25 Jan 15 15:51:06
"@CaptainJohn: $FEYE Constructive daily and weekly action $VTI $IGV see 4 yourself! http://t.co/ZNCfUCJqP6" @PastorKevin thx Kevin!
PortfolioWorkstation
25 Jan 15 15:18:40
RT @viabletrader: Stocks to watch in the week ahead. $SPY $LOCO $FEYE $DUK $GLD http://t.co/jF9Rp054OK
suriNotes
25 Jan 15 14:45:39
$FEYE in Inv. H&S Pattern, Targets http://t.co/SDRJGxdsqG
fazo
25 Jan 15 14:32:37
RT @bman_alerts: $FEYE nice chart large cap http://t.co/Xl9qLfYpIn
StockTalk
25 Jan 15 14:32:26
$FEYE nice chart large cap http://t.co/Xl9qLfYpIn
Jonathan Schrager
25 Jan 15 14:30:19
watchlist for 1/26 $FEYE $GPRO $ICPT $EOPN $AMPE $ARRY $ADXS $VIPS $TKMR $PIR
Antonio Cicarelli
25 Jan 15 14:02:38
Stocks to watch in the week ahead. $SPY $LOCO $FEYE $DUK $GLD http://t.co/jF9Rp054OK
Bradley
25 Jan 15 13:16:06
Great FREE #tutorial here for #traders http://t.co/LEJZ0Oqxci $NFLX $BAC $AMZN $MSFT $AAPL $GOOG $GOOGL $FEYE http://t.co/5RBcte6AHy
Jon Boorman, CMT
25 Jan 15 12:23:03
RT @M5amhan: 01-25-15 Trade Plan http://t.co/bF3SpSTgLr $QQQ $IWM $GLD $USO $AAPL $CSCO $FEYE $MSFT $TASR $TXN $CMG $SBUX $BA $UTX $CELG $R…
Stock Rocket
25 Jan 15 12:21:59
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $RHI $KMX $FEYE
Future Tech Investor
25 Jan 15 11:58:13
$HACK chart. Cyber Security holdings: $FEYE $SPLK $JNPR $CYBR $PFPT $IL $BOX $BLOX $KEYW $FTNT $PANW $CUDA $CSCO http://t.co/monivd8m9K
Harris Market Trends
25 Jan 15 11:39:47
Stocks on watch for week 1-25 $SPR $OSIS $SIMO $PAYC $MBLY $CY $TSM $AKRX $AYI $SYY $WSM $AA $SPLK $STE $FEYE $CELG
Michael Samhan
25 Jan 15 11:30:45
01-25-15 Trade Plan http://t.co/bF3SpSTgLr $QQQ $IWM $GLD $USO $AAPL $CSCO $FEYE $MSFT $TASR $TXN $CMG $SBUX $BA $UTX $CELG $REGN $UNH $TRV
Captain John
25 Jan 15 11:24:00
"@CaptainJohn: $FEYE Constructive daily and weekly action $VTI $IGV see 4 yourself! http://t.co/nWvTglm2Jn" @Daquirk thank you D!
Akash Mainra
25 Jan 15 10:57:02
RT @jimcramer: Look I like security-go buy all the $FEYE you want. Load the boat up, I am fine with that. Get big--okay?
Lou Gamelin
25 Jan 15 10:37:30
RT @ContrarianTrade: {video} Best Stock Pick $UUP $USO $DBC $RIG $BKMU $CYBR $NYSE $FXC $MCP $BBY $NFLX $TLYS $TVIX $TBT $EMHY $VLO $FEYE …
Robert Desmond
25 Jan 15 10:37:00
{video} Best Stock Pick $UUP $USO $DBC $RIG $BKMU $CYBR $NYSE $FXC $MCP $BBY $NFLX $TLYS $TVIX $TBT $EMHY $VLO $FEYE http://t.co/tIg7hVcokd
kim
25 Jan 15 10:26:27
RT @ckz8780: Back burner lots of nice stuff setting up $CYBR $FEYE $SMSI $YOD $ZEN $WIFI $CBMX
Chris Z
25 Jan 15 10:26:04
Back burner lots of nice stuff setting up $CYBR $FEYE $SMSI $YOD $ZEN $WIFI $CBMX
rsoxfan
25 Jan 15 10:22:46
RT @johnnyb4848: "@CaptainJohn: $FEYE Constructive daily and weekly action $VTI $IGV see 4 yourself! http://t.co/RRZFARxEcC" @dbInvestor Ms…
Rich Henss
25 Jan 15 10:17:54
$FEYE I already had a small position but added Friday on move over 34.61 with volume. If mkt ok this should do well
Captain John
25 Jan 15 09:44:05
"@CaptainJohn: $FEYE Constructive daily and weekly action $VTI $IGV see 4 yourself! http://t.co/RRZFARxEcC" @dbInvestor Ms. Fire Eye? ;>)
Joe Hentges
25 Jan 15 09:42:14
Draghi's Money Machine http://t.co/9Wqi1FquqP $VLO $FEYE $VIPS #stocks #stockmarket #options
Great Stockpix
25 Jan 15 08:46:26
Video of some chart setups I'll be watching tomorrow: $FEYE $RGLS $ASPS $INFN $EOPN $EHTH $ATLS http://t.co/VRbmQlHsxC
Captain John
25 Jan 15 08:21:44
@SLeeHunter1 Lee thank you! $FEYE
ProVesting
25 Jan 15 07:51:04
$FEYE $SCG: Investors Alert: FireEye (NASDAQ:FEYE), Microsoft Corporation ...: http://t.co/eAkvRGAs0Y
Captain John
25 Jan 15 07:48:32
$FEYE Constructive daily and weekly action $VTI $IGV see 4 yourself! http://t.co/O5GxUqzd4G
Stock Rocket
25 Jan 15 07:22:27
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $RHI $KMX $FEYE
@AlphaGeneration
25 Jan 15 06:33:02
RT @Yourpersonaltr1: YPT's DECADE LONG EARNINGS NICHE kick off: Who will be YPT's next $AVGO $ILMN $CSTE $FEYE ? http://t.co/HI1oPR8sMo ht…
Forex  News Insider.
25 Jan 15 06:15:17
RT @Yourpersonaltr1: YPT's DECADE LONG EARNINGS NICHE kick off: Who will be YPT's next $AVGO $ILMN $CSTE $FEYE ? http://t.co/HI1oPR8sMo ht…
Bradley
25 Jan 15 05:56:06
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ZOZO
25 Jan 15 05:06:48
$FEYE daily chart holding above 34.00 over 35.35 might get the 36.00 break $HACK sector and chatter rumors around it http://t.co/PmRUPKb8Vr
Miguel A. Ferreira
25 Jan 15 05:03:58
RT @hedgefundclone: According To Goldman Sachs: Cybersecurity is the #1 Target for Increased Corporate Spending by Fortune 500 Companies: L…
Miguel A. Ferreira
25 Jan 15 05:02:24
@hedgefundclone consolidation $FEYE on a yearly chart looks great!
Rectitude Market
25 Jan 15 03:09:00
RT @Yourpersonaltr1: YPT's DECADE LONG EARNINGS NICHE kick off: Who will be YPT's next $AVGO $ILMN $CSTE $FEYE ? http://t.co/HI1oPR8sMo ht…
Stock Rocket
25 Jan 15 00:14:47
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $RHI $KMX $FEYE
Edgar
24 Jan 15 23:56:21
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
Fletcher
24 Jan 15 22:18:15
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Bradley
24 Jan 15 22:17:06
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Asymmetric Alpha
24 Jan 15 20:15:44
RT @hedgefundclone: According To Goldman Sachs: Cybersecurity is the #1 Target for Increased Corporate Spending by Fortune 500 Companies: L…
Stockaholics
24 Jan 15 19:48:28
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $RHI $KMX $FEYE
				
				
By  +Follow September 19, 2013 2:12PM
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