Light Reading

Juniper Rides Service Provider Revenue Growth

Dan O'Shea
4/22/2014
50%
50%

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
Ariella
50%
50%
Ariella,
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. 
DOShea
50%
50%
DOShea,
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.
Ariella
50%
50%
Ariella,
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?
DOShea
50%
50%
DOShea,
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.
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Comcast Targets 6 New Gigabit Markets
Mari Silbey, Senior Editor, Cable/Video, 5/21/2015
Potholes Lurk in Indian Smart City Project
Gagandeep Kaur, Contributing Editor, 5/22/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones
Too Fluffy to Talk Click Here
Elmer found that his bountiful fur got in the way of meaningful conversation.