• FireEye’s CEO is disingenuous in trying to blame reduced cyberattacks by China for its Q3 earnings miss.
• The reality is FireEye is suffering from increased competition, poor public perception and inability to execute.
Threat detection vendor FireEye caused quite a stir in the security and investment communities last week following its third-quarter earnings announcement. Despite record revenue topping $165 million, FireEye missed both revenue and earnings estimates, posting a net loss of $123 million. That in itself isn’t remarkable; companies disappoint Wall Street every day. What caused heads to turn was the intimation by FireEye CEO Dave DeWalt that it fell short because of reduced cyberespionage activity originating from China, what he called “a reduction in the threat landscape,” which in turn reduced business opportunities for FireEye. Continue reading “What’s Wrong with FireEye? Here’s a Hint: It’s Not China”