FireEye CEO steps down as profit plummets

FireEye has announced that chief executive David DeWalt will be stepping down and replaced by current FireEye president Kevin Mandia.

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This week, the cybersecurity firm’s shares have taken a beating in the wake of poor projected financial results for this year.

Shares fell by over nine percent in after-hours trading after FireEye revealed that while revenue increased over Q1 2106, loss increased to $155.9 million — or 98 cents a share — in comparison to Q1 2015 losses of $134 million, or 88 cents a share.

In addition to poor financial results, FireEye also slashed its sales forecast for 2016 and projected heavier losses in the second quarter.

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In order to try and turn the cybersecurity firm’s fortunes around, Kevin Mandia is now the chief executive of the company — which acquired his in 2014.

DeWalt will step down and become Executive Chairman, clearing the way for Mandia to take over FireEye fully on 15 June this year.

Mandiant, a cyberforensics firm, was purchased by FireEye for $1 billion several years ago, and the partnered firms then rose in reputation after a series of research projects into threat actors and data breaches, including an explosive report on a Chinese People’s Liberation Army unit allegedly responsible for state-sponsored attacks against the United States.

“FireEye moves forward in 2016 with an exceptionally strong and experienced senior management team and outstanding leaders across all of our functional areas,” said Mandia. “With the combination of FireEye services, intelligence, and products, I believe that our global threat management platform is poised to dominate the future of cybersecurity, and we’ve taken steps to create a senior leadership team that can build on this opportunity.”

In addition to these leadership changes, FireEye has appointed Mandiant President Travis Reese as president of FireEye, and CFO Mike Berry has also been named chief operating officer.

FireEye board member and former Symantec CEO Enrique Salem has also been appointed as a lead independent director.

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