Light Reading

Juniper Rides Service Provider Revenue Growth

Dan O'Shea

While Juniper Networks is working its way through a corporate restructuring and watching personnel leave for other companies, these challenges apparently haven't slowed the vendor's ability to make sales in the service provider market.

Buoyed by a 10% increase in revenue from the service provider sector, a segment that represents about two-thirds of its overall revenue, Juniper Networks Inc. (NYSE: JNPR) reported first-quarter jumps in revenue and profit that beat consensus Wall Street estimates. First-quarter revenue came in at $1.17 billion, $783 million of which came from service providers. The company's profit was $110.6 million, representing an increase of more than 20% over the $91 million in net income the company reported in the first quarter of 2013.

It turned out to be a good day to tout Juniper's service provider successes. Just hours before the vendor's earnings call, Juniper was named as a supplier for AT&T's User Defined Cloud Program, a development about which Juniper CEO Shaygan Kheradpir said he was "very pleased." The selection may not come as a big shock, since Juniper has an ongoing relationship with AT&T, but the carrier's Supplier Domain 2.0 Program has added a new air of uncertainty to its vendor choices. (See AT&T Adds Amdocs, Juniper to Cloud Initiative.)

The overall tone of Juniper's earnings call late Tuesday was one of confidence, as CEO Kheradpir, who took control of the company last winter amid investor complaints, said Juniper continues to make progress on a restructuring program driven by Kheradpir's Integrated Operating Plan. (See Juniper Bows to Investor Pressure, Refocuses.)

Kheradpir said the company has largely completed its migration to an "optimized 'One Juniper' structure" designed to streamline its R&D, Go-To-Market and Operations units. He also said that by June, Juniper will be half way to its 2015 cost reduction goal of $160 million. One of the next steps in the Integrated Operating Plan is to begin offering a shareholder dividend. That will start next quarter at 10 cents per share, and will rise over time, he said.

Despite the good news, Juniper continues to face challenges, such as ongoing defections from its executive suites. Juniper sales veteran Shaun Page was the latest to make a move, joining Big Switch Networks, where he will be worldwide vice president of sales and work for another Juniper alum, Big Switch CEO Doug Murray. (See Big Switch Poaches Sales VP From Juniper.)

— Dan O'Shea, Managing Editor, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Sabre
5/2/2014 | 11:28:38 AM
Re: Q2 Guidance
I see Motley Fool only gives it 2 stars but ran a piece that recommended the stock. Interesting that the assessment of companies now include Glassdoor takes on the CEO. The site has grown in influence since I wrote about it a few months ago. 
User Rank: Blogger
5/2/2014 | 11:02:53 AM
Re: Q2 Guidance
I don't think I've heard much about other telecom vendors doing dividends, and with Juniper it really is part of the broader strategy to make investors happy again after a very tough stretch. I think I'll check this observation, however, with some financial analysts that follow Juniper--thanks for bringing it up.
User Rank: Light Sabre
4/23/2014 | 8:33:02 PM
Re: Q2 Guidance
@DoShea interesting that they are adding a dividend. Is that coming back into vogue for stocks in general?
User Rank: Blogger
4/23/2014 | 10:22:08 AM
Q2 Guidance
Juniper also provided second quarter guidance for revenue to be between $1.2 billion and $1.23 billion, which did not seem to surprise analysts one way or another.
From The Founder
Light Reading's conference in November will attempt to answer all of the big questions around white box networks. No pressure...
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
ZTE in Budapest ITU 2015

10|13|15   |   03:26   |   (0) comments

ZTE Chief Architect David Huo discusses the company's progress on the 5G front.
Telecom Innovators Video Showcase
Close-up on ConfD

10|12|15   |   10.21   |   (0) comments

Tail-f's Renée Robinson-Stromberg tells Steve Saunders about the powerful ConfD management interface.
Women in Comms Introduction Videos
Women in Comms: Highlights From Dallas

10|12|15   |   2:23   |   (1) comment

The best soundbites, quotes and words of wisdom from leading women from Intel, AT&T, Verizon and Genband at our recent WiC breakfast in Dallas.
Telecom Innovators Video Showcase
NetNumber Founder on Managing Signaling Control

10|12|15   |   6:36   |   (0) comments

NetNumber Founder and Chief Strategy Officer Doug Ranalli describes the essential complexity of real-world signaling-control and how NetNumber enables carriers to bring signaling-control "under-control". Learn why virtualization alone isn't the answer.
LRTV Documentaries
Verizon Gets Proactive on App Performance

10|12|15   |   04:50   |   (0) comments

SDN is turning traditional service models around to allow Verizon to measure and deliver performance at the application layer. As Shawn Hakl, VP of enterprise networking and managed solutions for Verizon, explains, the carrier had to develop new skill sets and change some of its internal operations, but the payoff was happier enterprise customers.
Telecom Innovators Video Showcase
Tail-f, Cisco & What the Future Holds

10|9|15   |   8:17   |   (0) comments

Steve Saunders meets with Tail-f's Director of Technology, Carl Moberg, in Stockholm to discuss becoming part of Cisco, ETSI MANO, virtualization and the need to combine science and business in order to create opportunities for service providers.
LRTV Interviews
Broadband Forum Embraces SDN & NFV

10|9|15   |   02:42   |   (1) comment

At Gigabit Europe 2015, Robin Mersh and Kevin Foster from the Broadband Forum explain how the industry body is adapting to meet the SDN, NFV and cloud needs of the access network sector.
LRTV Interviews
Top Tips for FTTH Operators

10|8|15   |   02:26   |   (0) comments

At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
LRTV Interviews
M-net Calls for FTTx Unity

10|8|15   |   03:45   |   (0) comments

At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (1) comment

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
Hot Topics
Dell Buys EMC for $67B in Biggest Tech Deal Ever
Mari Silbey, Senior Editor, Cable/Video, 10/12/2015
M&A Speculation Swirls Around Juniper
Ray Le Maistre, Editor-in-chief, 10/6/2015
Cord Cutting? 'Fraid so.
Brett Sappington, 10/7/2015
Cisco Makes 'Martian' Connection
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/9/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
"What?! I'm on with Finisar about their stock price tanking" Click Here
Live Digital Audio

Think NFV is just about virtualization? Think again!

Network architects are learning that there's a lot more to the technology than first thought – more complexity, that is; but also, more potential benefits.

On May 29th 1 PM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM, HP Communications Solutions Business at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!