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
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
Google Ready to Release Thousands of Loons
Sarah Thomas, Editorial Operations Director, 4/20/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment