FireEye CEO: We Are Looking To Grow Our Business Through The Channel

FireEye is looking to expand its go-to-market through the channel, CEO Kevin Mandia said, rolling out new cloud-based solutions and looking to improve relationships with its partners.

"We are focused on developing these go-to-market channels and making it easier for them to do business with us," Mandia said on the company's third quarter earnings call Thursday.

Mandia said expanding FireEye's reach in the channel will prove critical for the company to extend its reach in the marketplace and move forward on its path to profitability. He said FireEye plans to fulfill its deals through the channel and improve the process by which it works with partners and the pricing of the solutions it offers to make them more competitive through the channel.

[Related: FireEye Laying Off 10 Percent Of Workforce As Part Of Major Restructuring]

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Mandia said FireEye has also been working to improve its tarnished relationship with the channel after its 2014 acquisition of Mandiant, which partners saw as a move by the vendor to steal their services business. Mandia said FireEye is working to improve that relationship through providing clarity of engagement.

"I think some ambiguity existed after the Mandiant acquisition … We've worked really hard to make sure we have clarity of process," Mandia said. CFO Michael Berry said FireEye has seen some improvement in the last quarter with its relationship with partners, saying it is "not as bad as it was before." Berry said he hopes reseller checks will continue to improve as FireEye "drives better awareness in the partner community."

In tandem with its earnings, FireEye also announced the launch of Cloud MVX and MVX Smart Grid, driving a flexible sales model for its MVX threat detection technology at a more affordable price point. Berry wouldn’t say exactly how much the solution will cost, but said FireEye planned to "be much more aggressive" when it comes to competitive pricing against firewall vendors, while still maintaining a premium price point. Berry said Cloud MVX will be a key solution for partners.

"Really driving [Cloud MVX] through the channel and getting them back it the FireEye camp is an important initiative for us," Berry said. MVX Smart Grid is currently available and Cloud MVX will be available later this year.

FireEye reported sales for the quarter, which ended Sept. 30, of $186.4 million, up 13 percent year over year, and billings of $215.4 million, up 2 percent year over year. Net loss for the quarter was $122.1 million, compared to a 2015 third quarter loss of $134.9 million.

"We were quite pleased with the financial results, particularly given all the distractions in the quarter," Berry said.

In August, FireEye announced a restructuring initiative that included the layoffs of around 10 percent of its workforce – around 400 employees. Berry said those restructuring efforts are now complete. The company has also not yet named its new head of worldwide sales.

"We are serious about our path to profitability and we are pleased to see that the hard work of everyone at FireEye is starting to pay dividends," Berry said.

Berry said FireEye saw strong growth in its subscription and services businesses, which were up 26 percent year over year to $142.5 million, despite dropping product sales, which were down 27 percent to $43.8 million. Berry said FireEye saw slower-than-expected sales for its FireEye-as-a-Service offering and its midmarket Essentials line.

For the upcoming fourth quarter, FireEye said it expects revenues will be between $187 million and $193 million, with billings between $230 million and $250 million. It expects non-GAAP loss per share between $0.16 and $0.18.

FireEye also updated its guidance for the full year, now expecting sales between $716 million and $722 million and billings between $828 million and $848 million. It expects non-GAAP net loss per share between $1.14 and $1.16. Mandia said FireEye is confident it is still on track to hit profitability by the end of 2017.

"We are serious about our path to profitability at FireEye and FireEye is also innovating at a very rapid pace … We are laying the foundation for our future," Mandia said.