FireEye, Inc. (FEYE - Free Report) recently announced that it has enriched its cybersecurity solutions portfolio with FireEye Endpoint Security, FireEye Network Security, FireEye Email Security and FireEye Security Suite.
Notably, FireEye, which is already a Gold level member of Oracle Partner Network (OPN), also enhanced its relationship with Oracle (ORCL - Free Report) . Having achieved the “Powered by Oracle Cloud” status, FireEye Email Security is now accessible via Oracle Cloud Marketplace, thus providing added security solutions for customers shifting to cloud.
Per the press release, “customers can now evaluate FireEye Email Security running on Oracle Cloud Infrastructure via the Oracle Cloud Jump Start demo lab.” The company will also be introducing the FireEye SmartVision Edition aimed at identifying “suspicious traffic in a network”, thereby increasing visibility in the network.
All the new additions are available on a per-year subscription basis and are inclusive of “FireEye Helix, 24/7 support, cloud services, and virtual machines.” The solutions will be available per two subscription pricing models, one meant for large organizations and the other for medium sized organizations with up to 2000 users.
Subscription-Based Model: A Winner
FireEye’s management noted that its fourth-quarter 2017 revenues mainly benefited from the shift in business model from product based to subscription based.
The company’s fourth-quarter revenues of $202.3 million increased 9.5% year over year and outpaced the Zacks Consensus Estimate of $194 million as well as the guided range of $190-$196 million.
Additionally, the high-margin shorter-length contracts are proving to be beneficial for the company’s financials.
FireEye has been focusing on improving its solutions portfolio with innovations and inorganic additions. The company announced the acquisition of X15 Software in January 2018 to incorporate the latter’s Big Data platform to its security solutions.
We believe that these acquisitions along with the product launches will help the company to make the most of the growth opportunity in the cybersecurity market, which is expected to reach $231.94 billion in 2022 from $137.85 billion in 2017, per a recent report by MarketsandMarkets.
Zacks Rank and Key Picks
FireEye carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are NetApp, Inc. (NTAP - Free Report) and Forinet, Inc. (FTNT - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The expected long-term EPS growth rates for NetApp and Fortinet are 10.34% and 16.75%, respectively.
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