Mandia told Benzinga his mantra of the quarter, "You've got to do what you say you're going to do or at least everything within your means and power and capability to do so." This meant being laser focused on balancing growth with following a path to profitability. FireEye did $215.4 million in billings, which was above the $200 million–$215 million guidance, along with delivering the best operating margin in company's history, which delivered a $0.13 beat of the mid-point of EPS guidance range.
Delving into FireEye's
Despite the consideration of price, Mandia did hedge this by saying that FireEye "will always have a premium price because they invest more in gaining intelligence about bad guys than any other company that he's aware of."
Companies that he says are in beta testing for these products include a large financial institution testing out Smart Grid and is skipping immediately into production based on their experience. While the management was hesitant on giving details, both Mandia and Berry hinted that a government buyer had given good feedback in beta on the efficacy for their Cloud MVX product.
Recent Stock Performance
With time running short in the interview, Benzinga simply delved into a quick Q&A, ranging from M&A rumors to politics.
Balance Sheet: With regards to their balance sheet health, Berry was positive, "I think from a balance sheet perspective it's something that I am very comfortable with. We have over $900 million of cash available. We do have some convertible debt but they're not due for at least 3 and ½ years at the first tranche. We have a lot of flexibility. So from that perspective I am comfortable with where we stand."
Global Expansion: Benzinga asked where the company was looking to expand globally. Berry had this to say, "The great part about the international markets is advanced threats is still very ‘top of mind to them.' They are typically a couple years behind the United States, especially as it relates to security, so we're focused in the Nordics, we're focused in the Europe region. Middle East is a great growth market for us. We're very big in a good part of Asia Pacific, the whole Australia/Malaysia section is good for us. Japan, we're very large in. So we'll continue to add in those. We do expect international to continue to grow as a percent of our business."
However, Berry said this isn't where they want to be yet, stating, "We don't think that we have anywhere near the share that we should internationally. We'd like to see that be half the business, which is what you typically see in a larger technology company."
Politics: When asked about political impact of either candidate, Berry declared that
Rumors: Finally, Mandia touched on recent
A Look Ahead
Rounding out the call, Benzinga asked what each manager would like FireEye, or themselves, to work on over the next quarter. Berry and Mandia reiterate their goal from earlier, to focus on aligning FireEye's future growth with a road to profitability.
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