October 30, 2018 / 8:44 PM / 14 days ago

FireEye earnings boosted by lower costs, higher subscriptions

FILE PHOTO: The FireEye logo is seen outside the company's offices in Milpitas, California, December 29, 2014. REUTERS/Beck Diefenbach

(Reuters) - FireEye Inc reported better-than-expected quarterly profit and revenue on Tuesday as the cybersecurity firm benefited from its shift to a subscription-based model and lower costs, sending its shares up 3 percent in extended trading.

Total revenue rose 7.2 percent to $211.65 million, with subscriptions accounting for a major chunk of its sales.

Analysts on average were expecting revenue of $208.4 million, according to Refinitiv data.

Revenue from subscription and services rose 7.7 percent to $175.65 million, while analysts were expecting $171.75 million.

The company, which has probed some of the biggest cyber attacks to date including the Equifax breach, said its operating costs dropped 3 percent.

Loss attributable to shareholders narrowed to $50 million, or 26 cents per share, in the third quarter ended Sept. 30, compared with $69.2 million, or 39 cents per share, a year earlier.

Excluding one-time items, FireEye posted a profit of 6 cents per-share, above analysts’ estimates of a profit of 2 cents.

The Milpitas, California-based company forecast adjusted profit of 4 cents to 6 cents per share and revenue of $214 million to $218 million.

Analysts on average expected a profit of 4 cents per share and revenue of $216.6 million.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva

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