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The vendor cuts jobs and delivers a weak outlook after a positive third quarter that featured healthy service provider spending.

Juniper Jettisons 280 Jobs

Dan O'Shea
10/25/2013
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Though Juniper Networks beat analysts' revenue estimates for the third quarter and acknowledged livelier spending by service providers in results published this week, the company also cut about 280 jobs.

A Juniper spokesman gave us the official reason for the cuts: "Our headcount reductions are part of our effort to better align resources as part of our overall strategy and priorities going into 2014." The perceived cause, according to company observers: Juniper went soft in its outlook for the fourth quarter, predicting revenue of $1.2 billion to $1.23 billion, when analysts on average were expecting at least $1.23 billion. Michael Genovese, communications equipment sector analyst at MKM Partners, called Juniper's fourth-quarter outlook "conservative" in a research note.

Juniper's move is somewhat similar to what Cisco Systems did in August, when it announced 4,000 job cuts on the heels of a positive quarterly report. It also issued a weaker outlook for the upcoming quarter. (See: Cisco Caution Leads to Job Cuts.)

For the third quarter, Juniper beat analyst expectations with $1.186 billion of revenue and a $99 million profit. The company noted increasing service provider demand for its products to the tune of $788 million in revenue from that sector. It also expects that demand to sustain itself into next year. (See: Juniper Networks Reports Q3 Revenues Rise.)

Juniper recently announced upgrades to its MX Series routers. After this week's earnings report, the word circulating among analysts was that Juniper soon will have another major product announcement focusing on the datacenter. (See: Juniper Cards Pack Power Boost and Juniper Upgrades MX Routers.)

Dan O'Shea, Managing Editor, Light Reading

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Cellco
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Cellco,
User Rank: Moderator
10/28/2013 | 4:44:29 PM
Re: Government shutdown
@calahan, I think you need to cut them some slack.  Juniper has an okay foundry business that needs to be put to work, along with their country initiative to compete in IT engineers.  Cisco tried to be a good USA citizen but ultimately after getting burned by Chinese manufacturing, they too have turned to India as well.  Depress our dollar a little more and renew the USA engineering and technology initiatives (use to be corporate based, now corporations want citizens to pay Universities to be vocational schools).


If we can depress the Dollar another 30% and start on-shoring some technology development, Cisco will be able to make a case to repatriate some cash to return to it's once ardent commitment to on-shore technology development.  I hope so because as it stands now we will be a country of entertainment, tourist and financial community, relying on the current IT powerhouses of Russia, China and India.
calahan
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calahan,
User Rank: Light Beer
10/26/2013 | 8:02:35 PM
Re: Government shutdown
Oh please!

 

Cisco Systems is a truly great company. It is well managed and is an asset to the American economy.

 

What has Juniper Networks achieved other than hyping things up to benefit the few at the expense of the majority including investors, customers etc?

 

The real fact remains that Juniper's top engineering team was always below quality. MX is a joke and its engineers work on issues that are 3 to 4 years old.

 

Sure enough. Juniper will march into the future. /s
kaop
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kaop,
User Rank: Light Beer
10/26/2013 | 5:06:10 PM
SDN
The evolution to SDN has impact on Juniper and other traditional networking hardware companies.  Hopefully their SDN effort with OpenContrail can keep them competitive.
DOShea
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DOShea,
User Rank: Blogger
10/25/2013 | 7:49:31 PM
Government shutdown
Both Juniper and Cisco also saw weakness in government spending... for obvious reasons.
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