FireEye beats by $0.02, beats on revs; guides Q2 EPS below consensus, revs below consensus; lowers FY20 outlook (11.42 -0.10)
- Reports Q1 (Mar) loss of $0.02 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of ($0.04); revenues rose 6.7% year/year to $224.72 mln vs the $221.65 mln S&P Capital IQ Consensus.
- Co issues downside guidance for Q2, sees EPS of ($0.03)-($0.01), excluding non-recurring items, vs. $0.02 S&P Capital IQ Consensus; sees Q2 revs of $213-217 mln vs. $221.76 mln S&P Capital IQ Consensus.
- Co issues downside guidance for FY20, sees EPS of $0.03-0.07, excluding non-recurring items, (from $0.20-0.24) vs. $0.17 S&P Capital IQ Consensus; sees FY20 revs of $880-900 mln (from $935-945 mln) vs. $915.20 mln S&P Capital IQ Consensus.
- On April 23, 2020, the Board of Directors of FireEye approved a restructuring plan to streamline the company's operations to more closely align expenses to the company's projected revenue, position the company for improved operating performance, and allow the company to increase investment in the growth areas of the business. The restructuring plan includes a reduction of approximately 6% of the company's workforce. FireEye expects the restructuring will reduce total non-GAAP operating expenses by at least $25 million in 2020 compared to 2019, and currently estimates that it will recognize pre-tax charges to its GAAP financial results of between $10 million and $15 million, consisting of severance and other one-time termination benefits, and other restructuring related costs. These charges are primarily cash-based, and are expected to be recognized in the second quarter of 2020. The actions associated with the restructuring plan are expected to be completed by the end of the second quarter of 2020.