Tag Archives: chkp

FireEye Curbs 2016 Loss Expectations, But Stock Still Tumbles

FireEye ( FEYE ) curbed its loss expectations for 2016 by a nickel at the midpoint of its guidance range as the cybersecurity firm slashed its capital expenditures view by $15 million, but its shares still fell. FireEye stock was down 2.5%, near 18, in afternoon trading on the stock market today , after shares had risen for nine straight trading days. Shares edged up last week during the cybersecurity RSA Conference in San Francisco. At the conference, FireEye announced a partnership with agent-less vendor ForeScout Technologies and unveiled an endpoint exploit-protection product. And its $275 million  iSight Partners acquisition is already bearing fruit, FireEye executives told IBD. Tuesday, FireEye cut its 2016 capital expenditures view to $35 million vs. its earlier guidance for $50 million. FireEye sees $1.20 to $1.27 losses per share ex items, trimming earlier views for $1.25 to $1.32. FireEye reiterated sales guidance for $815 million to $845 million, which would be up 33% vs. 2015. FireEye retained its billings ex items guidance for $975 million to $1.055 billion. The consensus of 34 analysts polled by Thomson Reuters expected $829.9 million in sales and a per-share loss ex items of $1.30. Positive cash flow is still expected to come in at $70 million to $80 million, FireEye said. The updated guide comes as FireEye kicks off its 2016 analyst briefing. IBD’s 25-company Computer Software-Security industry group, which ranks a lowly No. 177 out of 197 groups, was down 1% Tuesday afternoon. FireEye stock has a low IBD Composite Rating of 17 out of a possible 99. Verisign ( VRSN ), Palo Alto Networks ( PANW ) and Check Point Software Technology ( CHKP ) stocks lead the group with CRs of 84, 79 and 73, respectively.

Palo Alto Networks Wins ‘Bake-Offs’ Against Cisco, Check Point

Proofpoint ( PFPT ) rebuffed Wall Street concerns that tech spending has slowed this quarter, Piper Jaffray analyst Andrew Nowinski wrote Monday, following last week’s 40,000-attendance cybersecurity RSA Conference in San Francisco. Fears of a tech spending depression slugged IBD’s 25-company Computer Software-Security industry group after dismal outlooks by  Tableau Software ( DATA ) and LinkedIn ( LNKD ) last month. The group hit a 20-month low on Feb. 9 but has since risen 31%. A weak spending outlook did not play out at RSA, Nowinski and William Blair analyst Jonathan Ho wrote Monday in separate research reports. “(Proofpoint) management said they are seeing ‘absolutely no change in the buying environment,’” Nowinski wrote. “Based on our meetings at the conference, we believe demand trends in Q1 have remained strong through the first two months of the year.” Endpoint Pits Symantec, FireEye, IBM Trending buzzwords include endpoint security, internal access management and privileged account management, Nowinski wrote. Symantec ( SYMC ), FireEye ( FEYE ) and IBM ( IBM ) (via a partnership with Carbon Black) compete in the endpoint market. Industry tracker IDC sees endpoint security revenue reaching $4.6 billion in 2016, up 5.4% and accelerating from 2% year-over-year growth in 2015, Nowinski wrote. Despite a marketing refresh, Symantec will struggle against “rapidly growing next-generation endpoint vendors that have demonstrated stronger solutions,” Ho predicted. FireEye, on the other hand, bolstered its threat-prevention capabilities by adding exploit detection to its endpoint. IDC also expects internal access management revenue to reach $5.9 billion in 2016 and grow at an 8% compound annual growth rate through 2019. Within that sector, privileged account management will comprise $550 million, growing at a 10.6% CAGR over the next four years, Ho says. CyberArk Software ( CYBR ) rivals Centrify in the identity access management ring, Nowinski wrote. But Centrify’s tools for securing both privileged accounts and end-user identity give it a broader portfolio than CyberArk, he wrote. During RSA, CyberArk released a new version of its privileged threat analytics system, aimed at stopping “Golden Ticket” attacks which exploit privileged credentials in Microsoft ( MSFT ) domain-level administrator accounts, Ho wrote. Ho also noted that a platform focus continues to buoy Palo Alto Networks ( PANW ), which he says still wins “bake-offs” against Cisco Systems ( CSCO ), Check Point Software Technologies ( CHKP ) and Juniper Networks ( JNPR ). But Check Point’s software-based firewall could be a game changer, he wrote. “Check Point’s software-based firewall appears better positioned than competitors for the upcoming shift to third-party cloud architectures such as AWS ( Amazon ( AMZN ) Web Service) and (Microsoft) Azure,” he said. ‘Spending Has Not Weakened’ Ultimately, the RSA Conference quelled concerns of slowing spending and lengthening sales cycles, Ho wrote. RSA saw 70 first-time exhibitors, giving it 500 companies at the event, and more than 20% growth from 33,000 attendees in 2015. “We observed continued excitement over the space and a strong appetite for new solutions, consistent with prior years,” Ho wrote. “Our discussions with private and public companies suggest that the environment remains robust and that security spending has not weakened near term.” Overall themes included the burgeoning Internet of Things market, encryption, third-party cloud security, identity/access management as-a-service, real-time visibility, next-generation endpoint security, automation/orchestration and leveraging Big Data analytics, Ho wrote. “The conference reinforced our view that the companies best positioned to benefit from increased spending are those that offer innovative next-generation approaches that will see rapid growth in investment,” he wrote. Customers are looking at cost, manageability and vendor consolidation, Ho wrote.

Booming RSA Pits Security Rivals IBM, CyberArk, Palo Alto Networks

SAN FRANCISCO — CyberArk ( CYBR ) CEO Udi Mokady surveyed the crowd. A man decked in a traditional Native American headdress passed the booth — his movement highlighted by the nearby fire-truck-red semitrailer that  Fortinet ( FTNT ) rolled in as its booth, and Palo Alto Networks ‘ ( PANW ) towering blue signage. Tweeted photos show a bright orange fox touting social media security firm ZeroFOX. Open-source manager Black Duck Software handed out “No ducks” T-shirts. And the entire event was overshadowed by a Terminator-Darth Vader mash-up mascot. “A lot of CEOs don’t even walk the floor,” Mokady told IBD at the annual cybersecurity RSA Conference in San Francisco’s Moscone Center convention hall. “But there are a lot of meetings that set the tone for the year, (there are) relationships happening behind closed doors.” If the RSA Conference sets the tone for the cybersecurity industry , 2016 will be marked by roaring noise — mostly in marketing. But execs tend to agree the overarching themes for the year will center on technological leaps and possible collaboration. Platform, Platform, Platform “Platform” is a buzzword for a reason, Needham analyst Scott Zeller wrote in a research report after Palo Alto Networks last month crushed Wall Street’s Q2 expectations. The broad-based platform approach works in security. But Palo Alto wasn’t the only vendor lauding its platform-centric approach at the RSA Conference. An overwhelming majority of companies — IBM ( IBM ), FireEye ( FEYE ) and Fortinet included — touted their platforms. Consumers are confused, Fortinet threat researcher Derek Manky told IBD. That’s where third-party testing comes into play. Fortinet calls it a “security fabric,” which integrates Fortinet’s firewall with threat intelligence data from FortiGuard researchers. “We can say how good we are, but there are a lot of third-party vendors that are doing validation of security,” he said. A recent test by NSS Labs ranked Fortinet’s FortiGuard 3200D and Check Point Software Technology ‘s ( CHKP ) 13800 NGFW Appliance as top products, blocking 99.6% of all exploits. The lab examined 13 leading products comprising 96% of the next-generation firewall market. Palo Alto Networks’ PA-7050 scooted in with 95.9% effectiveness, trailing a Juniper Networks ( JNPR ) offering and two Cisco Systems ( CSCO ) products with a respective 98%, 96.5% and 96.3% scores. Confusion is lending itself to the advent of software-as-a-service (SaaS) offerings, former iSight Partners CEO John Watters told IBD. FireEye acquired iSight in January for $275 million and retained Watters and much of the iSight leadership team. Watters sees SaaS making a play for the platform market. “The big trends line is customers are moving from best-in-class niche product to best-in-class platform,” he said. “And they’re moving from a self-serve model to an as-a-service model.” That shift benefits FireEye. New FireEye-as-a-Service billings nearly doubled in 2015 vs. 2014, CFO Michael Berry told analysts during the company’s Q4 earnings conference call in February. Data Sharing … Or Not Palo Alto Networks, Fortinet, Intel ( INTC ) Security and Symantec ( SYMC ) are leading a sector push to share threat intelligence data across the map. In 2014, the quartet became odd bedfellows in a security collaboration dubbed “the Cyber Threat Alliance.” Davis Hake, Palo Alto Networks director of cybersecurity strategy, told IBD the group’s goal is to reduce the noise generated by low-level, easy-to-launch attacks. “We take that data back out, and we work to democratize it with the rest of the security community,” he said. “It allows us to understand, across the community, attackers’ game plans against all of these other entities.” Palo Alto Networks CEO Mark McLaughlin, on the company’s recent earnings call, said the days of monetizing threat data are over. A company’s value stems from its overall platform, he says. Watters disagrees: “All the people that are driving sharing are people who don’t have a bunch of intellectual property,” he said. “Everybody is filling up each other’s in-boxes with all the same stuff. It’s all the machine-generated event data.” ISight fits into a detection hole in FireEye’s model, he explained. “We detect … everything that leads up the time they hit enter on the keyboard,” he said. “As soon as they hit enter, we went blind because we didn’t have attack surface monitoring.” FireEye’s incident response leg, Mandiant, sees the attack itself, watching how hackers escalate privileges, jump firewalls and burrow through systems. ISight detects the attack prep and follows the fallout on the black market. That intelligence is proprietary, Watters said. Because of that, FireEye doesn’t need to reboot its software every several years; the software is updated every hour. Fortinet makes a similar boast, noting its FortiGuard research updates systems every five minutes. Big Data, Internet of Things and AI Artificial intelligence (AI) won’t look like Haley Joel Osment in the 2001 Steven Spielberg flick. Rather, machine-learning will be bolstered by data-heavy Internet of Things devices, Sol Cates, chief security officer for encryption specialist Vormetric, told IBD. The trend could boost the chip sector. Tesla Motors ( TSLA ) partner Nvidia ( NVDA ) forged alliances with Facebook ( FB ) and Chinese Internet major Alibaba ( BABA ) during Q4 for speedy intelligence chips, Nvidia CFO Colette Kress said during last month. Just as “platform” is a commonplace buzzword, so too are Big Data, the Internet of Things and the cloud, Cates says. But they’ll also be integral to future technology — and that’s either a boon or a bust for the cybersecurity industry. AI generates two big questions for the sector, Cates said. “How do we protect the sensitive data going in? And how do we harness it for security?” he asked. The problem is, the cybersecurity industry often trails innovation. “We have to figure it out after the fact, and we’re not yet experts on it.” IBM, which just acquired Resilient Systems , plans to push machine-learning to accelerate automated penetration testing, Marc van Zadelhoff, the company’s security general manager, told IBD. Penetration testing — purposefully probing a system for vulnerabilities — will become more and more necessary in the security world as the BYOD (bring your own device) trend opens more endpoints. Gemalto exec David Etue argued during an RSA lecture that software updates could right the likely-to-occur wrongs as the cybersecurity sector tackles the Internet of Things market. “If we get this right, this puts us in a position for long-term success,” he said. Fortinet’s Manky says wrangling the Internet of Things and protecting Big Data will be more complicated than that. Industry experts estimate 20 billion-30 billion Internet-capable devices will come online in the next four years. “That generates a lot of noise, and there’s a lot of traffic, you need to inspect all of that,” Manky said. “Anything and everything is a target now. … If you think of any device that has an Internet connection, it’s got memory, it has a processor and a connection, and that’s all hackers need to go after (it).”