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FireEye ( FEYE ) CEO David DeWalt is stepping down, replaced by Mandiant founder Kevin Mandia, the cybersecurity firm announced late Thursday as it reported Q1 sales that missed Wall Street views and gave consensus-lagging Q2 guidance. Mandiant President Travis Reese will take up that mantle at FireEye, and FireEye CFO Mike Berry was named chief operating officer in addition to his current role. DeWalt will become executive chairman of the FireEye board. “With these leadership announcements, FireEye has moved to solidify our position in the market today and more importantly, prepare us for growth opportunities going forward,” DeWalt said in a statement. FireEye acquired incident-response company Mandiant in 2014, and its founder was groomed inside FireEye. Mandia has served as FireEye senior vice president and COO, and was named to the board in 2015. In after-hours trading, after FireEye posted earnings and announced the CEO change, FireEye stock was down 8%. Shares fell 1.3% in the regular session. Shares are down 23% this year, following the recent acquisitions of iSight Partners and Invotas. For Q1, FireEye reported $168 million in sales, up 34% year over year, and a 47-cent per-share loss minus items, shrinking by a penny vs. last year’s losses. Analysts had modeled a 50-cent per-share loss, so the bottom line beat, but they expected sales of $171.8 million. Billings ex items of $186 million topped the high end of FireEye’s three-months-ago guidance for $163 million to $183 million. Current-quarter guidance for $178 million to $185 million in sales and a 38-cent to 40-cent per-share loss ex items missed the consensus of 35 analysts polled by Thomson Reuters for $192.8 million and 36 cents losses. Sales would rise 23% at the midpoint. For Q2, FireEye expects $200 million to $215 million billings minus items, up 16% year over year. Scalper1 News
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