The cybersecurity firm FireEye [FEYE] announced several major management and leadership changes at the top levels amid lower revenue expectations on Thursday.
David DeWalt, chairman of the board and Chief Executive Officer (CEO), is moving to assume to role of executive chairman of the board while FireEye president and Kevin Mandia is succeeding DeWalt as CEO. Mandia is the founder of FireEye’s subsidiary Mandiant, which the company purchased in early 2014 (Defense Daily, Jan. 3, 2014).
DeWalt has served as the FireEye CEO since November 2012 and Chairman since that May. The company noted while he was in those positions FireEye grew almost 100 percent every year and it acquired companies including Mandiant, nPulse, iSIGHT, and Invotas.
Mandia was first named FireEye president in February 2015 and appointed to the board of directors that February. When FireEye first bought Mandiant, Mandia became FireEye vice president and chief operating officer (COO) in December 2013.
“Kevin Mandia is the obvious choice to lead FireEye in the next phase of our journey, as we expand our product and service offerings, extend our reach worldwide, evolve our business, and influence the way the world thinks about cyber security,” said DeWalt said in a statement.
“As a member of our executive leadership team. Kevin and I share a common vision for FireEye and our industry, and I look forward to supporting him in his new role as FireEye CEO,” DeWalt added.
“I am passionate about combatting today’s increasingly complex and widespread cyber threats, and I’m excited by this opportunity to take the battle to a new level as CEO of FireEye,” Mandia said.
“With today’s leadership announcements, I believe we’ve positioned FireEye for even great success in the future.”
These changes come the same day that FireEye has changed its 2016 total revenue projections, lowering them from a March 8 $815 million to $845 million range to the $780 million to $810 million range.
The company reported revenue of $168 million in the first quarter of 2016, an increase of 34 percent over 2015, but the GAAP gross loss attributable to shareholders grew from 88 cents per share in the first quarter of 2015 to 98 cents per share in 2016. The non-GAAP net loss per share in the first quarter of 2016, which excludes items, was 47 cents. This is a slight decrease over 48 cents in 2015.
Travis Reese, president of Mandiant is also becoming president of FireEye while the company’s Chief Financial Officer (CFO) Mike Berry, gains the additional role as company COO.
Reese first joined the company when it acquired Mandiant and previously served as Mandiant’s president and COO. Berry joined FireEye in September 2015 and earlier led finance and other operations at several technology companies. FireEye highlighted that Berry played a key role in strengthening the company’s financial infrastructure and the global operations.
All of the leadership changes are scheduled to take effect on June 15, the day after FireEye’s annual shareholder meeting.
FireEye also announced the board of directors appointed board member and former CEO of Symantec [SYMC] Enrique Salem as lead independent director.
Salem has served on the board since February 2013 and worked at Symantec from 2009 to 2012. He currently is the managing director of Bain Capital Ventures.
“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.
DeWalt will remain active in company operations as executive chairman and will work with the management team to increase adoption of the company’s Threat Management Platform, FireEye said.