Despite coronavirus-induced uncertainties, FireEye (NASDAQ: FEYE) this week posted first-quarter results in line with guidance. In addition, the cybersecurity specialist is accelerating its transition to growth areas. But investors should remain cautious as the company's recent results indicate significant challenges remain.
During the first quarter, revenue increased to $224.7 million, up 6.7% year over year.
The company's legacy hardware business -- appliances that provide advanced cybersecurity defenses -- dropped 10.8% year over year to $105.7 million. That result isn't surprising as enterprises are moving some of their computing infrastructure and applications to the cloud, which reduces the need for FireEye's hardware solutions.