FireEye (FEYE) Burns Out

NEW YORK (TheStreet) -- After seeing 10% gains in pre-market trading,  FireEye ( FEYE) has reversed direction by falling 3.6% to $36.68 Friday. Wall Street has continued to process the earnings report released a day earlier which showed losses narrower than expected.

For its inaugural quarterly report since its float mid-September, the cyber-security firm recorded a third-quarter loss of $1.21 a share, though it was wider than a year-earlier loss of 55 cents a share.

Revenue topped $42.7 million, 95% higher than a year earlier and $2.9 million more than analysts had predicted. Billings, a measure of deferred revenue, jumped 103% to $70.8 million.

"We added a record number of new customers and existing customers expanded their deployments of our virtual machine-based threat protection platforms," said David DeWalt, CEO of FireEye and former head of rival McAfee, in a statement.

Management said it expects full-year revenue in 2014 of between $240 and $250 million, higher than consensus of $231 million.

Since its IPO on Sept. 20, shares of the Milpitas, Calif.-based company have exceeded expectations, doubling to $38.12 on its first day and sustaining those levels since.

-- Written by Keris Alison Lahiff.

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