FireEye, Inc. (FEYE) saw its loss narrow to $61.54 million, or $0.37 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $136.15 million, or $0.87 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.82 million, or $0.03 a share from a loss of $56.50 million or $0.36 a share, a year ago.
Revenue during the quarter went down marginally by 0.04 percent to $184.70 million from $184.77 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 65.37 percent. Operating margin for the quarter stood at negative 26.56 percent as compared to a negative 66.84 percent for the previous year period.
Operating loss for the quarter was $49.06 million, compared with an operating loss of $123.50 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.43 million compared to operating loss of $52.52 million in prior year period.
"Since mid-2016 we have focused on two strategic initiatives rightsizing our cost structure and evolving our product portfolio and we made great progress on both fronts in the fourth quarter," said Kevin Mandia, FireEye chief executive officer. "Non-GAAP operating losses narrowed by more than $50 million compared to the fourth quarter of 2015, and we generated positive operating cash flow in the fourth quarter.
For the first-quarter, Fireeye, Inc. projects revenue to be in the range of $160 million to $166 million and projects adjusted operating income to decline in the range of 24 percent to 26 percent. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.26 to $0.28.
Operating cash flow turns negative
FireEye, Inc. has spent $14.58 million cash to meet operating activities during the year as against cash inflow of $37.02 million in the last year.
The company has spent $189.70 million cash to meet investing activities during the year as against cash outgo of $576.75 million in the last year.
Cash flow from financing activities was $25.85 million for the year, down 96.75 percent or $769.63 million, when compared with the last year.
Cash and cash equivalents stood at $223.67 million as on Dec. 31, 2016, down 44.38 percent or $178.43 million from $402.10 million on Dec. 31, 2015.
Working capital drops significantly
FireEye, Inc. has witnessed a decline in the working capital over the last year. It stood at $551.52 million as at Dec. 31, 2016, down 40.65 percent or $377.80 million from $929.33 million on Dec. 31, 2015. Current ratio was at 2.03 as on Dec. 31, 2016, down from 3.03 on Dec. 31, 2015.
Debt moves up
FireEye, Inc. has witnessed an increase in total debt over the last one year. It stood at $741.98 million as on Dec. 31, 2016, up 5.07 percent or $35.78 million from $706.20 million on Dec. 31, 2015. Fireeye, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $741.98 million as on Dec. 31, 2016, up 5.07 percent or $35.78 million from $706.20 million on Dec. 31, 2015. Total debt was 31.14 percent of total assets as on Dec. 31, 2016, compared with 28.93 percent on Dec. 31, 2015. Debt to equity ratio was at 0.88 as on Dec. 31, 2016, up from 0.68 as on Dec. 31, 2015.
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