FireEye, Inc. (FEYE) saw its loss narrow to $82.99 million, or $0.48 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $155.90 million, or $0.98 a share. On the other hand, adjusted net loss for the quarter narrowed to $15.07 million, or $0.09 a share from a loss of $75.09 million or $0.47 a share, a year ago.
Revenue during the quarter grew 3.44 percent to $173.74 million from $167.97 million in the previous year period. Gross margin for the quarter expanded 534 basis points over the previous year period to 62.81 percent. Operating margin for the quarter stood at negative 41.28 percent as compared to a negative 93.11 percent for the previous year period.
Operating loss for the quarter was $71.71 million, compared with an operating loss of $156.40 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $13.02 million compared to operating loss of $73.09 million in prior year period.
"We made continued progress on our path to profitability in the first quarter, improving operational efficiency while managing transitions on multiple fronts," said Kevin Mandia, FireEye chief executive officer. "We met or exceeded our guidance ranges on all financial metrics, and achieved significant milestones on our product roadmap, including the general availability of the FireEye Helix platform and a new release of our next generation HX endpoint solution."
For the second-quarter, Fireeye, Inc. forecasts revenue to be in the range of $173 million to $179 million. The company forecasts adjusted operating income to decline in the range of 9 percent to 10 percent. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.10 to $0.14.
For fiscal year 2017, Fireeye, Inc. forecasts revenue to be in the range of $724 million to $736 million. The company expects diluted loss per share to be in the range of $0.26 to $0.36 on adjusted basis.
Operating cash flow remains negative
Fireeye, Inc. has spent $16.95 million cash to meet operating activities during the quarter as against cash outgo of $22.52 million in the last year period.
The company has spent $8.72 million cash to meet investing activities during the quarter as against cash outgo of $197.35 million in the last year period.
The company has spent $34.62 million cash to carry out financing activities during the quarter as against cash outgo of $7.13 million in the last year period.
Cash and cash equivalents stood at $163.37 million as on Mar. 31, 2017, down 6.70 percent or $11.74 million from $175.11 million on Mar. 31, 2016.
Working capital declines
Fireeye, Inc. has witnessed a decline in the working capital over the last year. It stood at $523.12 million as at Mar. 31, 2017, down 12.73 percent or $76.34 million from $599.46 million on Mar. 31, 2016. Current ratio was at 2.06 as on Mar. 31, 2017, down from 2.18 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 49 days for the last year period. Days sales outstanding went down to 72 days for the quarter compared with 85 days for the same period last year.
Days inventory outstanding has decreased to 4 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 52 for the same period last year.
Debt moves up
Fireeye, Inc. has witnessed an increase in total debt over the last one year. It stood at $751.21 million as on Mar. 31, 2017, up 5.07 percent or $36.23 million from $714.98 million on Mar. 31, 2016. Fireeye, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $751.21 million as on Mar. 31, 2017, up 5.07 percent or $36.23 million from $714.98 million on Mar. 31, 2016. Total debt was 32.72 percent of total assets as on Mar. 31, 2017, compared with 28.99 percent on Mar. 31, 2016. Debt to equity ratio was at 0.93 as on Mar. 31, 2017, up from 0.72 as on Mar. 31, 2016.
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