FireEye cut operating loss by 82% YoY
FireEye (FEYE) is continuing to watch for cost-saving opportunities. Regarding improving operating efficiency, FireEye’s CEO (chief executive officer) Kevin Mandia said in a statement that accompanied the company’s 3Q17 earnings release, “I believe we have done an excellent job of right-sizing our cost structure over the past year while innovating faster than at any time in our history.”
FireEye said it was able to cut its GAAP (generally accepted accounting principles) operating loss by 45% YoY (year-over-year) and its non-GAAP (adjusted) operating loss by 82% YoY in 3Q17.
FireEye trims more than $125 million in operating loss in three quarters
In the first three quarters of 2017, FireEye said it was able to reduce its GAAP operating loss by more than $200 million and its adjusted operating loss by more than $125 million, compared to a similar period last year.
FireEye views the cost reductions as paving the way to profitability. The company is expecting adjusted operating profitability in 4Q17.
EPS loss narrowed significantly despite tepid top-line growth
Since FireEye only posted slim revenue growth in 3Q17, cost reduction appears to have contributed to its strong YoY bottom-line improvement in the quarter. FireEye’s revenue rose 2% YoY to $189.6 million in 3Q17, but its adjusted EPS (earnings per share) loss narrowed significantly on a YoY basis. FireEye posted an adjusted EPS loss of $0.04 in 3Q17, compared to an adjusted EPS loss of $0.18 in 3Q16.
FireEye’s EPS loss for 3Q17 beat the consensus estimate by $0.03.
Proofpoint (PFPT), Check Point Software Technologies (CHKP), and SecureWorks (SCWX) beat their consensus EPS by $0.07, $0.04, and $0.01, respectively, in their quarters that correspond to FireEye’s fiscal 3Q17. Symantec (SYMC) missed the consensus EPS by $0.03 in a comparable period.