FireEye, one of a slew of cybersecurity firms that have seen shares fall to earth in the midst of a slowing market, said on Thursday (May 5) that it is getting a new chief executive officer as of mid-June.
The firm’s current CEO, David DeWalt, will be replaced by Kevin Mandia, according to the company, which also released earnings on Thursday that disappointed investors. The firm lowered its forecast for 2016, which helped torpedo the stock 8 percent, landing at $14.65 in after-market trading.
FireEye said it looks to garner total sales in the range of $780 million to $810 million. And that is lower, significantly, than its previous estimate of $815 million to $845 million. The Street had a $829 million tally coming into the quarter. Competition has been eating into results as the firm endures market share wars with Palo Alto Networks and others. Job cuts have also been in the offing.
The New York Times, turning to the appointment of Mandia, stated that he is the current head of the Mandiant unit, which was bought for more than $1 billion in 2014 and has made a name delving into cyberattacks as big as the ones that bedeviled Sony and Target in past years.
The latest earnings results missed The Street as FireEye’s top line came in at $168 million, less than the consensus of $171 million, and investors took no solace in the fact that the net loss at $0.47 a share was three pennies better than the projections held by consensus coming into the quarterly report.