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By Arjun Panchadar
(Reuters) – FireEye Inc.'s cybersecurity firm said Tuesday its revenues and billing were well below Wall Street expectations, which plans to close fewer large-scale deals than a year ago.
The company has signed two contracts worth $ 10 million each in the first and second quarters of 2018, which is relatively rare for FireEye, said Frank Verdecanna, chief financial officer, in a call for the future. .
"We do not expect any transactions of more than $ 10 million in the current (2019) quarter," added Verdecanna.
FireEye said it expects billings in the range of $ 205 million to $ 220 million in the second quarter, well below estimates of $ 215.2 million.
According to badysts, growing competition is a threat to the security services at the request of the company.
"On-demand security services (FireEye) could be impacted in the longer term by competitors who would add machine-learning and automated response technologies to their cyber security platforms," said the badyst. Morningstar Mark Cash.
FireEye, of Milpitas, Calif., Expects adjusted earnings of between 1 cent and 3 cents per share for the second quarter and a business figure of between $ 212 million and $ 216 million.
Analysts expected on average a profit of 4 cents per share and a turnover of 216 million dollars.
However, FireEye's first-quarter sales slightly exceeded previous estimates, thanks to subscription and service sales.
Cybersecurity companies have benefited as organizations around the world have increased their budgets to protect against rising cybercrime. Serious attacks such as a denial of service can paralyze entire organizations, while malware and phishing often target people through emails.
FireEye's total revenues increased 5.8% to $ 210.5 million. Analysts expected on average a turnover of $ 210.2 million.
For the full year, the company has reaffirmed its revenue and profit forecasts, while increasing its billing forecasts.
(Report by Arjun Panchadar in Bengaluru, edited by Maju Samuel, Bernard Orr)
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