(Reuters) - Cyber security company FireEye Inc on Tuesday forecast second-quarter revenue and billings largely below Wall Street expectations as it expects to close fewer large deals than it did a year ago, sending its shares down 5 percent in after-hours trading.
The company had signed two deals worth $10 million each in the first quarter and the second quarter of 2018, relatively rare for FireEye, Chief Financial Officer Frank Verdecanna said on a post-earnings call.
"We do not expect any $10 million plus transactions in the (current) quarter (of 2019)," Verdecanna added.
FireEye said it expects second-quarter billings in the range of $205 million to $220 million, largely below estimates of $215.2 million.
Analysts said rising competition is a threat for the company's on-demand security services.
"(FireEye's) on-demand security services could be impacted longer term by competitors adding machine learning and automated response technologies into their cybersecurity platforms," Morningstar analyst Mark Cash said.
Milpitas, California-based FireEye forecast second-quarter adjusted profit of between 1 cent and 3 cents per share and revenue in the range of $212 million to $216 million.
Analysts on average were expecting a profit of 4 cents per share and revenue of $216 million.
However, FireEye's first-quarter sales edged past estimates, as it got a boost from subscription and services revenue.
Cyber security companies have benefited as organizations worldwide ramp up budgets to shield against rising cyber crime. Severe attacks such as a denial-of-service can cripple entire organizations while malware and phishing often target individuals through emails.
FireEye's total revenue rose 5.8 percent to $210.5 million. Analysts on average had expected revenue of $210.2 million.
For the full year, the company reaffirmed its revenue and profit forecast, while raising its billings forecast.
(Reporting by Arjun Panchadar in Bengaluru; Editing by Maju Samuel, Bernard Orr)
