FireEye Acquires Security Instrumentation Leader Verodin
Billings and revenue growth expected to accelerate as combined technologies, intelligence and expertise increase customers’ resilience to cyber attacks and improve return on security investments
The Verodin Security Instrumentation Platform adds significant new
capabilities to the
“Security effort does not equal security effectiveness. That is why
security-conscious customers red-team their networks – they need the
unvarnished truth of how effective their security programs are. Verodin
gives us the ability to automate security effectiveness testing using
the sophisticated attacks we spend hundreds of thousands of hours
responding to, and provides a systematic, quantifiable, and continuous
approach to security program validation,” said
“Cyber security today is based on assumptions – that technologies work
as vendors claim, products are deployed and configured correctly,
processes are fully effective, and changes to the environment are
properly understood, communicated and implemented. However, the reality
is much different for almost every organization and often they discover
this only after being on the wrong side of a breach,” said
The Verodin platform complements existing cyber security products and technology-enabled services. Verodin will integrate with FireEye® Helix™ security orchestration capabilities to help customers prioritize and automate continuous improvement of security controls. Customers will also be able to implement Verodin cyber security measurement and validation solutions “as-a-service” through the FireEye Managed Defense service and as an Expertise On Demand automated service.
Verodin solutions will continue to be available on a standalone basis
through Verodin resellers, as well as through the global community of
Acquisition-related Update to Q2 and 2019 Outlook and Preliminary 2020 Impact
Based on the company’s preliminary evaluation of the Verodin business and the anticipated impact of purchase accounting on Verodin deferred revenue balances, guidance ranges for the second quarter and full year 2019 have been updated to reflect the acquisition.
Additionally,
For the second quarter of 2019,
-
Revenue in the range of
$213 million to $217 million . -
Billings in the range of
$207 million to $222 million . - Non-GAAP gross margin as a percent of revenue in the range of 74 percent to 75 percent.
- Non-GAAP operating margin as a percent of revenue in the range of 0 percent to 2 percent.
-
Non-GAAP net income per diluted share between
$0.00 and $0.02 . -
Cash flow generated by operations between negative
$7 million and negative$12 million .
Non-GAAP net income per diluted share for the second quarter assumes
interest income on cash and cash equivalents and short-term investments
will offset cash interest expense associated with the company’s
convertible senior notes, provision for income taxes of between
For 2019,
-
Revenue in the range of
$890 million to $900 million . -
Billings in the range of
$935 million to $955 million . - Non-GAAP gross margin as a percent of revenue of approximately 75 percent.
- Non-GAAP operating margin as a percent of revenue between 4 percent and 5 percent.
-
Non-GAAP net income per diluted share between
$0.12 and $0.16 . -
Cash flow generated by operations between
$95 million and $115 million .
Non-GAAP net income per diluted share for 2019 assumes interest income
on cash and cash equivalents and short-term investments will offset cash
interest expense associated with the company's convertible senior notes,
provision for income taxes of between
Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of stock-based compensation expense capitalized in software development costs, amortization of intangible assets, non-cash interest expense related to the company’s convertible senior notes, and other non-recurring items. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability of, the amounts of stock-based compensation expense, amortization of intangible assets, and non-recurring expenses that may be incurred in the future. Stock-based compensation expense is impacted by the company’s future hiring and retention needs, as well as the future fair market value of the company’s common stock, all of which are difficult to predict and subject to constant change. The actual amount of stock-based compensation in the second quarter of 2019 and full year 2019 will have a significant impact on the company’s GAAP operating margin and net loss per share. Further, amortization of intangible assets, as well as other non-recurring expenses, if any, will also impact results. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.
Conference Call Information
Forward-Looking Statements
This press release contains forward-looking statements, including
statements regarding the expectations, beliefs, plans, intentions and
strategies of
These forward-looking statements involve risks and uncertainties, as
well as assumptions which, if they do not fully materialize or prove
incorrect, could cause FireEye’s results to differ materially from those
expressed or implied by such forward-looking statements. The risks and
uncertainties that could cause FireEye’s results to differ materially
from those expressed or implied by such forward-looking statements
include the failure to achieve expected synergies and efficiencies of
operations between
All forward-looking statements in this press release are based on
information available to the company as of the date hereof, and
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© 2019
View source version on businesswire.com: https://www.businesswire.com/news/home/20190528005716/en/
Source:
Media Inquiries:
Dan Wire
FireEye, Inc.
Media.Relations@FireEye.com
415-895-2101
Investor Inquiries:
Kate Patterson
FireEye, Inc.
Investor.Relations@FireEye.com
408-321-4957