Asshat of the Year Award: Dave Dewalt, CEO of $FEYE

7,167 views

dave-dewalt-fireeye-ceo
Dave Dewalt, Huge Asshat Award Winner, ceo publicly traded time bomb, FireEye

I know it’s early in the year and there will be plenty of gents worthy of this distinguished award. However, it would be impossible for anyone to steal this guy’s thunder inside of the next 7 months of 2014.

Introducing, Dave Dewalt, CEO of publicly traded time bomb called Fireeye, Asshat winner.

Let’s go over a series of events that has led Dave to this post.

3/3/14- FEYE is offering 5.582 mln shares of its common stock and selling shareholders are offering an additional ~8.417 mln shares (85.64 )

3/5/14- FireEye (+3.5%) makes new all time high — FBR raised tgt to $105 this morning — co is expected to price 5.6 mln share offering THursday night (91.27 +2.98)

3/7/14- FireEye prices follow-on public offering of 14 mln shares of common stock at $82.00 per share by co and selling shareholders (89.55 ) Of the shares being offered, 5,582,215 are being offered by FireEye and the remaining shares are being offered by existing stockholders.

3/19/14- FireEye showing early weakness; note that IPO lock-up period expired today (73.50 -4.25) The stock has pulled back ahead of the lock-up expiration, -23% from its early March highs, but the stock is still up 265% from its initial IPO pricing of $20.00 (stock opened for trading at $40.30 on 9/20/2013).

4/10/14- Cyber Security stocks getting hit following Imperva (IMPV) warning as tech/momentum stocks pare this week’s bounce (29.11 -20.62) IMPV is down ~42% at a 17 month low after lowering Q1 guidance.

4/22/14- Fireeye (FEYE) field for a ~13.28 mln share common stock offering by selling stockholders.

 5/6/14- FireEye reports EPS in-line, beats on revs; guides Q2 EPS below consensus, revs above consensus; lowers FY14 EPS below consensus, raises FY14 revs in-line (37.13 -3.10) Reports Q1 (Mar) loss of $0.53 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of ($0.53); revenues rose 160.6% year/year to $74 mln vs the $71.66 mln consensus.

  • Co issues guidance for Q2, sees EPS of ($0.63) – ($0.58), excluding non-recurring items, vs. ($0.51) Capital IQ Consensus Estimate; sees Q2 revs of $89-91 mln vs. $87.71 mln Capital IQ Consensus Estimate. Q2 Guidance: Total billings in the range of $108 to $112 million. Gross margin in the range of 68 to 70 percent.

  • Co issues guidance for FY14, lowers EPS to ($2.30) – ($2.10), from ($2.20) – ($2.00) excluding non-recurring items, vs. ($2.04) Capital IQ Consensus Estimate; raises FY14 revs to $405-415 mln from $400-410 mln vs. $406.96 mln Capital IQ Consensus Estimate. FY14 Guidance: Raises total billings to be in the range of $550 to $570 million from prior guidance of $540-560 mln. Gross margin in the range of 70 to 73 percent.

  • First quarter billings were $99.2 million, compared with the previously issued guidance range of $84 to $88 million. Total billings included $26.1 million in product billings, $39.4 million in product subscription billings, $18.0 million in professional services billings and $15.7 million in support and maintenance billings.

  • In a separate release, FireEye announced the execution of a definitive agreement to acquire privately-held nPulse Technologies, a network forensics company. As consideration for the acquisition, FireEye will pay ~$60 million in cash, and issue ~$10 million stock consideration that is subject to the achievement of certain milestones.

I had to document the series of events that has led us to this point. The stock, mind you, is down over 60% since March! Dave, FireEye’s CEO, bought a company called Mandiant. Very nice. Then, when the price was $82, he issued a secondary, JUST AHEAD of the expiration of shares in lock-up. This is a no-no, especially for new companies with weak shareholder bases.  Dave didn’t stop there.

Shortly after the lock up period expired, their competitor, IMPV, warned, sending the stock careening lower by 42%. As CEO of a company in a similar space, and seeing your share price getting crushed on a daily basis, one would think Dave might take steps to protect his shareholders, no?

NO.

About 10 days after the IMPV disaster, Dave announced ANOTHER secondary. Keep in mind, this wasn’t an effort by the company to raise cash. Quite the contrary. This was an offering to allow Mandiant insiders sell their stock! Unbelievable! He is truly a destroyer of shareholder confidence and value. Awesome stuff.

Hindsight is 20/20. But, as CEO of the company, Dave had to have known that his quarter was not so hot. Yesterday FEYE reported a disastrous quarter, missing EPS estimates by a football field. Did Dave announce a share buy back or offer some sort of soothing remarks in an attempt to stop the bleeding?

Of course not. He’s an asshat.

On top of the earnings miss and horrendous stock activity, Dave announced ANOTHER acquisition, using $60 million in much needed cash and an intent to ISSUE MORE SHARES, to the tune of $10 million.

This guy is totally tone deaf. These events should be bookmarked and shared across universities around the world, as a lesson to future CEOs of what not to do. The wanton disregard for shareholders, the arrogance, the sense of entitlement, operating in a vacuum, all of these things make Dave Dewalt an asshat of supreme magnitude.

Seeing the shares of FEYE down more than 20% this morning, I think it’s fair to say his job is in jeopardy, rightfully so.

Nevertheless, congratulations to Mr. Dewalt for this unprecedented accomplishment, in receiving an annual asshat award, even though we are only in the month of May.

Cheers!

45 Responses to “Asshat of the Year Award: Dave Dewalt, CEO of $FEYE”

  1. i think dick costolo is sitting right behind dave in asshat class on ways to destroy investor value and confidence

  2. Wow. This market…

  3. Since fly is out if feye , my new hobby is watching feye drop all day. I get depressed when the market closes

  4. YOU WILL KNOW ME BY THE TRAIL OF BLOOD

    That list of accomplishments is impressive, give this man a raise.

  5. good thing you got out!

  6. Isn’t this guy on CNBC later today? Also…analyst meeting at FEYE headquarters on May 12th…should be a real gas!

  7. Dewalt will probably be doing serious jail time in a couple of years.

    The Class Action lawsuits are being written as we speak.

  8. I tweeted this Awards Ceremony to @FireEye. Hopefully ol’ Dave shows up here and gives an acceptance speech.

  9. Old man stocks continue to perform well, make money and pay their dividends… Momo stocks on the other hand – complete annihilation.

  10. here,here thank you Fly

  11. I Am Jesse Livermore

    holy shit! TWO secondaries that sandwich an IPO lockup expiration? I missed the 2nd one. And here I thought they had only done one. That sneaky fucker snuck it in while I wasn’t looking.

  12. Yellen basically just said she will continue accommodations for the economy until the unemployment rate a negative figure. That would happen when we are at 100% employment and all of our illegal aliens and underage child labor jobs are full too. I love this lady!

  13. went long FEYE 15 mins ago at 28.04

    • I went long at 27.50… however, it doesn’t mean anything when I still have my position from 60.

      • ah shit man…yeah. this is my first forray into this plague stock. and shockingly its already starting to suck.

        • I hear you. This is a long term buy for me so I am ok with some more down. Has been rough though.

        • CEO’s get fired over data security. Do you think there is going to be pushback on data security spend?

          • its a hot button issue right now but it’ll blow over pretty soon.

            • I am not sure… mid sized public companies are expanding there online presence and risk management has never been on the radar. I am starting to see it pick up speed with implementation being in the next couple of years.

              • the outlook for the data security market is positive but im not sure if the stocks will ever come anywhere close to recovering the huge losses incurred over the past 3 months

  14. On a different asshat note, why doesn’t she cut through all the bullshit and just say no matter what is going on in the economy or with employment the Fed will keep rates at zero forever so we can try to pay down our debt. Oh, and fuck all of the people who ever saved a dime cuse you’ll never get interest again.

  15. xxxhuggiebearxxx

    Heeer in Brasil, we are in a, how you say? BOOL MARKIT?

    ahhhhhhh

  16. xxxhuggiebearxxx

    ANGI in a DEATH SPIRAL.

    Who could have seen that coming

  17. Even ZeroHedge highlights the stellar performance of FEYE:

    http://www.zerohedge.com/news/2014-05-07/russell-plunges-3-month-lows

  18. C. Montgomery Burns

    “FireEye is a stick in the eye”

  19. The good news is if this is the big tech collapse king zuckerdorks legacy will be buying whatsapp for 20bill!

  20. Sounds like a prime candidate for government work.

  21. FBR– nice call! maybe they are bigger asshats for their huge mistake recommending the shares at a high.

  22. Dude sold enough shares, he’s set for life. Time to move to the beach.

  23. As you stated a week or two ago FLY…this market is diseased. I suspect of the venereal nature.

  24. $rusl is gonna hit 18+$ soon , easy 15%

  25. 3/5/14 intraday 97.35…talk about a first rate ass-fucking – Jesus H Christ (no Full Metal Jacket) Fly..

  26. Fly your Selling of FEYE was Space Alien Magic like always. Letting that Old Girlfriend go was perfect, she turned out to be such a Bitch.

  27. The Fly needs to do an Xtranormal video featuring Dave Dewalt and Devil Dog (Hint: Coincidental alliteration or alias?—are they in fact the same person?)

  28. bonobo smores

    Asshat award very appropriate. Just insert head through sphincter.

  29. Recent trading has been nothing if not confusing. Dow up 95 points (that’s a rally in my book), I don’t own much of anything anymore, and damn near everything I own and everything on my watchlist is red. My thinking is in disconnect.

  30. I’m going to tout SDRL again.

  31. here here

Comments are closed.
Previous Posts by The Fly

Asshat of the Year Award: Dave Dewalt, CEO of $FEYE

7,167 views

dave-dewalt-fireeye-ceo
Dave Dewalt, Huge Asshat Award Winner, ceo publicly traded time bomb, FireEye

I know it’s early in the year and there will be plenty of gents worthy of this distinguished award. However, it would be impossible for anyone to steal this guy’s thunder inside of the next 7 months of 2014.

Introducing, Dave Dewalt, CEO of publicly traded time bomb called Fireeye, Asshat winner.

Let’s go over a series of events that has led Dave to this post.

3/3/14- FEYE is offering 5.582 mln shares of its common stock and selling shareholders are offering an additional ~8.417 mln shares (85.64 )

3/5/14- FireEye (+3.5%) makes new all time high — FBR raised tgt to $105 this morning — co is expected to price 5.6 mln share offering THursday night (91.27 +2.98)

3/7/14- FireEye prices follow-on public offering of 14 mln shares of common stock at $82.00 per share by co and selling shareholders (89.55 ) Of the shares being offered, 5,582,215 are being offered by FireEye and the remaining shares are being offered by existing stockholders.

3/19/14- FireEye showing early weakness; note that IPO lock-up period expired today (73.50 -4.25) The stock has pulled back ahead of the lock-up expiration, -23% from its early March highs, but the stock is still up 265% from its initial IPO pricing of $20.00 (stock opened for trading at $40.30 on 9/20/2013).

4/10/14- Cyber Security stocks getting hit following Imperva (IMPV) warning as tech/momentum stocks pare this week’s bounce (29.11 -20.62) IMPV is down ~42% at a 17 month low after lowering Q1 guidance.

4/22/14- Fireeye (FEYE) field for a ~13.28 mln share common stock offering by selling stockholders.

 5/6/14- FireEye reports EPS in-line, beats on revs; guides Q2 EPS below consensus, revs above consensus; lowers FY14 EPS below consensus, raises FY14 revs in-line (37.13 -3.10) Reports Q1 (Mar) loss of $0.53 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of ($0.53); revenues rose 160.6% year/year to $74 mln vs the $71.66 mln consensus.

  • Co issues guidance for Q2, sees EPS of ($0.63) – ($0.58), excluding non-recurring items, vs. ($0.51) Capital IQ Consensus Estimate; sees Q2 revs of $89-91 mln vs. $87.71 mln Capital IQ Consensus Estimate. Q2 Guidance: Total billings in the range of $108 to $112 million. Gross margin in the range of 68 to 70 percent.

  • Co issues guidance for FY14, lowers EPS to ($2.30) – ($2.10), from ($2.20) – ($2.00) excluding non-recurring items, vs. ($2.04) Capital IQ Consensus Estimate; raises FY14 revs to $405-415 mln from $400-410 mln vs. $406.96 mln Capital IQ Consensus Estimate. FY14 Guidance: Raises total billings to be in the range of $550 to $570 million from prior guidance of $540-560 mln. Gross margin in the range of 70 to 73 percent.

  • First quarter billings were $99.2 million, compared with the previously issued guidance range of $84 to $88 million. Total billings included $26.1 million in product billings, $39.4 million in product subscription billings, $18.0 million in professional services billings and $15.7 million in support and maintenance billings.

  • In a separate release, FireEye announced the execution of a definitive agreement to acquire privately-held nPulse Technologies, a network forensics company. As consideration for the acquisition, FireEye will pay ~$60 million in cash, and issue ~$10 million stock consideration that is subject to the achievement of certain milestones.

I had to document the series of events that has led us to this point. The stock, mind you, is down over 60% since March! Dave, FireEye’s CEO, bought a company called Mandiant. Very nice. Then, when the price was $82, he issued a secondary, JUST AHEAD of the expiration of shares in lock-up. This is a no-no, especially for new companies with weak shareholder bases.  Dave didn’t stop there.

Shortly after the lock up period expired, their competitor, IMPV, warned, sending the stock careening lower by 42%. As CEO of a company in a similar space, and seeing your share price getting crushed on a daily basis, one would think Dave might take steps to protect his shareholders, no?

NO.

About 10 days after the IMPV disaster, Dave announced ANOTHER secondary. Keep in mind, this wasn’t an effort by the company to raise cash. Quite the contrary. This was an offering to allow Mandiant insiders sell their stock! Unbelievable! He is truly a destroyer of shareholder confidence and value. Awesome stuff.

Hindsight is 20/20. But, as CEO of the company, Dave had to have known that his quarter was not so hot. Yesterday FEYE reported a disastrous quarter, missing EPS estimates by a football field. Did Dave announce a share buy back or offer some sort of soothing remarks in an attempt to stop the bleeding?

Of course not. He’s an asshat.

On top of the earnings miss and horrendous stock activity, Dave announced ANOTHER acquisition, using $60 million in much needed cash and an intent to ISSUE MORE SHARES, to the tune of $10 million.

This guy is totally tone deaf. These events should be bookmarked and shared across universities around the world, as a lesson to future CEOs of what not to do. The wanton disregard for shareholders, the arrogance, the sense of entitlement, operating in a vacuum, all of these things make Dave Dewalt an asshat of supreme magnitude.

Seeing the shares of FEYE down more than 20% this morning, I think it’s fair to say his job is in jeopardy, rightfully so.

Nevertheless, congratulations to Mr. Dewalt for this unprecedented accomplishment, in receiving an annual asshat award, even though we are only in the month of May.

Cheers!

45 Responses to “Asshat of the Year Award: Dave Dewalt, CEO of $FEYE”

  1. i think dick costolo is sitting right behind dave in asshat class on ways to destroy investor value and confidence

  2. Wow. This market…

  3. Since fly is out if feye , my new hobby is watching feye drop all day. I get depressed when the market closes

  4. YOU WILL KNOW ME BY THE TRAIL OF BLOOD

    That list of accomplishments is impressive, give this man a raise.

  5. good thing you got out!

  6. Isn’t this guy on CNBC later today? Also…analyst meeting at FEYE headquarters on May 12th…should be a real gas!

  7. Dewalt will probably be doing serious jail time in a couple of years.

    The Class Action lawsuits are being written as we speak.

  8. I tweeted this Awards Ceremony to @FireEye. Hopefully ol’ Dave shows up here and gives an acceptance speech.

  9. Old man stocks continue to perform well, make money and pay their dividends… Momo stocks on the other hand – complete annihilation.

  10. here,here thank you Fly

  11. I Am Jesse Livermore

    holy shit! TWO secondaries that sandwich an IPO lockup expiration? I missed the 2nd one. And here I thought they had only done one. That sneaky fucker snuck it in while I wasn’t looking.

  12. Yellen basically just said she will continue accommodations for the economy until the unemployment rate a negative figure. That would happen when we are at 100% employment and all of our illegal aliens and underage child labor jobs are full too. I love this lady!

  13. went long FEYE 15 mins ago at 28.04

    • I went long at 27.50… however, it doesn’t mean anything when I still have my position from 60.

      • ah shit man…yeah. this is my first forray into this plague stock. and shockingly its already starting to suck.

        • I hear you. This is a long term buy for me so I am ok with some more down. Has been rough though.

        • CEO’s get fired over data security. Do you think there is going to be pushback on data security spend?

          • its a hot button issue right now but it’ll blow over pretty soon.

            • I am not sure… mid sized public companies are expanding there online presence and risk management has never been on the radar. I am starting to see it pick up speed with implementation being in the next couple of years.

              • the outlook for the data security market is positive but im not sure if the stocks will ever come anywhere close to recovering the huge losses incurred over the past 3 months

  14. On a different asshat note, why doesn’t she cut through all the bullshit and just say no matter what is going on in the economy or with employment the Fed will keep rates at zero forever so we can try to pay down our debt. Oh, and fuck all of the people who ever saved a dime cuse you’ll never get interest again.

  15. xxxhuggiebearxxx

    Heeer in Brasil, we are in a, how you say? BOOL MARKIT?

    ahhhhhhh

  16. xxxhuggiebearxxx

    ANGI in a DEATH SPIRAL.

    Who could have seen that coming

  17. Even ZeroHedge highlights the stellar performance of FEYE:

    http://www.zerohedge.com/news/2014-05-07/russell-plunges-3-month-lows

  18. C. Montgomery Burns

    “FireEye is a stick in the eye”

  19. The good news is if this is the big tech collapse king zuckerdorks legacy will be buying whatsapp for 20bill!

  20. Sounds like a prime candidate for government work.

  21. FBR– nice call! maybe they are bigger asshats for their huge mistake recommending the shares at a high.

  22. Dude sold enough shares, he’s set for life. Time to move to the beach.

  23. As you stated a week or two ago FLY…this market is diseased. I suspect of the venereal nature.

  24. $rusl is gonna hit 18+$ soon , easy 15%

  25. 3/5/14 intraday 97.35…talk about a first rate ass-fucking – Jesus H Christ (no Full Metal Jacket) Fly..

  26. Fly your Selling of FEYE was Space Alien Magic like always. Letting that Old Girlfriend go was perfect, she turned out to be such a Bitch.

  27. The Fly needs to do an Xtranormal video featuring Dave Dewalt and Devil Dog (Hint: Coincidental alliteration or alias?—are they in fact the same person?)

  28. bonobo smores

    Asshat award very appropriate. Just insert head through sphincter.

  29. Recent trading has been nothing if not confusing. Dow up 95 points (that’s a rally in my book), I don’t own much of anything anymore, and damn near everything I own and everything on my watchlist is red. My thinking is in disconnect.

  30. I’m going to tout SDRL again.

  31. here here

Comments are closed.