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FireEye Finds New CEO: Will It Make a Difference?

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Kevin Mandia, founder of Mandiant, will lead FireEye

Previously in the series, we looked at FireEye’s (FEYE) recently announced fiscal 1Q16 results. The company also announced that Kevin Mandia will be its new CEO (chief executive officer) after the current CEO David DeWalt steps down on June 15, 2016. DeWalt, who is also the company’s chairman, will stay on as executive chairman. Mike Berry, the current CFO (chief financial officer), will take the COO (chief operating officer) position.

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Before FireEye’s announcement, Mandia led FireEye’s Mandiant forensics unit. Mandiant, founded in 2004, is a cybersecurity company that has managed cyberattacks on Target (TGT) and Japan- (EWJ) based Sony Pictures Entertainment (SNE). Mandiant went public in September 2013 and soon after was acquired by FireEye for $1.1 billion.

Mandiant is a leading player in the incident-response services space. Lately, this space is attracting the attention of technology players. A few months ago, IBM (IBM) announced the acquisition of Resilient Systems, a player in the cybersecurity space and best known for its incident response platform. After the announcement, IBM went on to create X-Force Incident Response Services.

FireEye lowered guidance for fiscal 2016

In its recent fiscal 1Q16 earnings release, FireEye stated that it expects fiscal 2016 revenue of $780 million–$810 million compared to the previous forecast of $815 million–$845 million. This was below analysts’ expectations of $828.6 million. FireEye expects billings to be $975 million–$1.1 billion.

Next, let’s see how FireEye’s segments performed in fiscal 1Q16.

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