What happened

Shares of FireEye (NASDAQ:MNDT) fell as much as 13.4% early Wednesday, then partially recovered to trade down 7% as of 1:45 p.m. EDT, after the cybersecurity platform company announced mixed second-quarter 2019 results and lowered its full-year guidance.

On the former, FireEye's quarterly revenue grew 7.4% year over year to $217.6 million, above the high end of its outlook for a range of $213 million to $217 million. That translated to an adjusted net loss of $1.7 million, or $0.01 per share, below guidance calling for breakeven to net income of $0.02 per share.

FireEye's billings also climbed 13% to $221 million, near the top of the company's outlook for a range of $207 million to $222 million.

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So what

FireEye CEO Kevin Mandia credited the company's strength in billings to the relative outperformance of its platform, cloud subscription, and managed services offerings.

But CFO Frank Verdecanna elaborated that these strengths also come with higher expenses for the yet-to-be-profitable company, particularly relating to cloud-hosting costs and commissions on new business. What's more, the end-of-life for FireEye's third-generation appliances -- and, consequently, the contracts attached to those appliances -- means lower recurring revenue for the year.

Now what

FireEye now expects full-year revenue of $865 million to $875 million, and adjusted net income ranging from breakeven to $0.04 per share. For perspective, FireEye had previously told investors to anticipate 2019 revenue of $890 million to $900 million, with adjusted net income per share of $0.12 to $0.16.

Coupled with FireEye's technically mixed second-quarter results, this outlook reduction gave traders more than enough reason to drive shares down in response today.

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