FireEye revenue outlook tops Street view, shares rise

Reuters

By Jim Finkle

Nov 7 (Reuters) - FireEye Inc, a technology firmthat helps companies fend off cyber attacks, gave a revenueoutlook for 2014 that came in ahead of Wall Street forecasts asit posted results for the first time since it went public inSeptember in one of this year's hottest IPOs.

The company's shares climbed 8 percent. FireEye said it seesrevenue next year of between $240 million and $250 million, upfrom between $156 million and $158 million this year.

Analysts have been forecasting 2014 revenue of $231 million,according to Thomson Reuters I/B/E/S.

FireEye uses cloud-based technologies to help businessesdetect malicious software that it says evade old-schoolanti-virus software made by companies including Symantec Corp and Intel's McAfee security division.

FireEye's CEO, Dave DeWalt is the former chief executive ofMcAfee who sold McAfee to Intel.

FireEye's third-quarter non-GAAP loss widened to $38.2million, or $1.21 per share, from $6.1 million, or 55 cents, ayear earlier, as the number of outstanding shares nearlytripled. Analysts were expecting a loss of $1.28 per share.

FireEye shares rose to $41.15 in extended trade, up fromtheir Nasdaq close of $38.03.

The shares are trading at about double their $20 IPO priceon expectations that heavy spending on sales and marketing,along with more modest investments in research and development,are preparing the company for a period of rapid growth.

Third-quarter revenue rose 95 percent from a year earlier to$42.7 million. Billings climbed 103 percent to $70.8 million.

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