People are not spending on security

Were-Doomed-The-Dads-Army-StorySecurity outfit FireEye released some disappointing results and claim it is because firms are skimping on their security budgets.

FireEye forecast a bigger than expected loss for the first quarter and said it expected growth in cyber security spending to slow this year.

FireEye Chief Executive Dave DeWalt said sales across the industry were boosted by “emergency spending” last year as major hacking attacks prompted some companies to place massive orders.

“Now I see a much more normalized spending environment,” he said in an interview ahead of the company’s quarterly earnings call with analysts.

The company forecast an adjusted loss per share of 49-53 cents per share for the quarter ending March, bigger than the 40 cent loss analysts were expecting on average.

DeWalt said the buying of iSight Partners and Invotas this year would hurt profitability in the short term as both businesses were subscription-based.

Subscriptions bring in less money in the short term.

The company bought privately held iSight for $200 million in January to boost its cyber intelligence offerings for governments and businesses.

While demand for more sophisticated security offerings has surged in the face of an increase in cyber hacking, FireEye is facing intense competition from Palo Alto Networks, Proofpoint and Imperva.

FireEye’s fourth-quarter billings was $256.9 million – at the lower end of the $257 million-$258 million the company had estimated in January.

FireEye said net loss attributable to common shareholders increased to $136.1 million, or 87 cents per share, in the quarter ended Dec. 31, from $105.7 million, or 72 cents per share, a year earlier.

Revenue rose 29.2 percent to $184.8 million, missing analysts’ average estimate of $185.3 million.