FireEye (FEYE) Will Continue Its Spending Ways with Government 'Support'

FireEye (Nasdaq: FEYE) isn't expected to post a profit until 2018, but that doesn't mean the company is planning to stop spending on development and expansion anytime soon.

The WSJ noted that reasoning behind this is that FireEye is planning to retain the U.S. government as a key customer.

CEO Dave DeWalt has noted recently that relationships with "three-letter agencies" in Washington is a key part of the company's strategy. In June, the CEO told investors that government officials were bringing the company in as a trusted advisor on high-profile breaches.

Currently, for every $1 of revenue that FireEye brings in, it spends $0.94 on sales and marketing, which DeWalt believes is key for the company if it plans on continuing to thrive. The company posted revenue of $426 million with a loss of $444 million last year.

One key component of FireEye's strategy is its Mandiant unit, which the company acquired in 2013 for about $1 billion. The company was a first-mover in investigating corporate data breaches. Mandiant's consultations and investigations account for about 15 to 20 percent of FireEye's revenue, DeWalt noted.

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Shares of FireEye are indicated higher Wednesday morning.

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