Light Reading

Juniper Reports Q2 Numbers, Sells Unit

Light Reading
News Wire Feed
Light Reading
7/23/2014
50%
50%

SUNNYVALE, Calif. -- Juniper Networks (NYSE: JNPR), the industry leader in network innovation, today reported preliminary financial results for the three months ended June 30, 2014 and provided its outlook for the three months ending September 30, 2014.

Net revenues for the second quarter of 2014 increased 7% year-over-year and increased 5% sequentially to $1,230 million.

Juniper’s operating margin for the second quarter of 2014 increased to 9.4% on a GAAP basis, including $86 million of restructuring and other charges, from (0.5)% in the first quarter of 2014, and decreased from 12% in the second quarter of 2013. Non-GAAP operating margin for the second quarter of 2014 increased to 22.3% from 17.2% in the first quarter of 2014, and increased from 18.9% in the second quarter of 2013.

Juniper posted GAAP net income of $221.1 million, or $0.46 per diluted share for the second quarter of 2014. The GAAP diluted income per share includes a $0.41 benefit from gain on a legal settlement partly offset by an $0.18 impact from restructuring and other charges. Non-GAAP net income was $190.3 million, or $0.40 per diluted share for the second quarter of 2014. Non-GAAP net income per diluted share increased 38% compared to the first quarter of 2014, and increased 38% compared to the second quarter of 2013.

The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Preliminary Net Revenue by Market table below.

“Juniper delivered another solid quarter of revenue growth, with continued diversification across our target verticals. With our focused strategy, we are seeing clear signs of success with customers who are in a build cycle for High-IQ networks and Cloud ecosystems,” said Shaygan Kheradpir, chief executive officer, Juniper Networks. “We are relentlessly executing on our Integrated Operating Plan and successfully implemented several initiatives to drive greater efficiencies across our organization. Throughout, we have been working to ignite our culture of innovation and maintain our unwavering commitment to shareholders to drive significant value through profitable growth.”

“I am pleased to report our sixth consecutive quarter of year-over-year strong earnings expansion,” said Robyn Denholm, chief financial and operations officer, Juniper Networks. “We continue to generate strong operating cash flows and have made good progress toward our operating expense and capital allocation goals. We have done so by being very mindful of how we allocate resources to ensure we continue to invest in R&D that will drive Juniper’s growth well into the future.”

Junos Pulse Divestiture
Today, Juniper Networks also announced it has entered into a definitive agreement to sell its Junos Pulse product portfolio to Siris Capital for approximately $250 million. Siris is a leading private equity firm focused on making control investments in data, telecommunications, technology and technology-enabled business service companies Juniper and Siris have agreed to continued support of customers and partners through the transition. Juniper’s sale of Pulse is consistent with the Company’s overall strategy outlined in its Integrated Operating Plan (IOP) and further aligns the company to where its customers and the market is heading with High-IQ networks and building the next-generation of clouds. It is part of the Company’s goal to achieve $160 million in annualized cost savings by Q1 2015.

Other Financial Highlights
Total cash, cash equivalents, and investments as of June 30, 2014 were $3,960 million, compared to $3,479 million as of March 31, 2014, and $3,819 million as of June 30, 2013.

Juniper’s net cash flow from operations for the second quarter of 2014 was $425 million, compared to $126 million in the first quarter of 2014, and $284 million in the second quarter of 2013. This quarter’s net cash flow reflects the gain of $75 million related to our litigation settlement.

Days sales outstanding in accounts receivable or “DSO” was 41 days in the second quarter of 2014, compared to 46 days in the prior quarter, and 40 days in the second quarter of 2013.

During the first quarter of 2014, Juniper Networks initiated a $1.2 billion accelerated share repurchase (ASR) program, of which $900 million of shares were initially delivered. The Company expects the remaining shares to be delivered no later than the end of August.

Juniper Networks also announced the initiation of a quarterly cash dividend of $0.10 per share of common stock. This is the Company’s first cash dividend in history. It will be payable on September 23, 2014 to shareholders of record as of the close of business on September 2, 2014. The Company’s Board of Directors anticipates declaring this dividend in future quarters on a regular basis; however, future declarations of dividends are subject to Board approval and may be adjusted as business needs or market conditions change.

Capital expenditures were $41 million and depreciation and amortization of intangible assets expense was $45.3 million during the second quarter of 2014.

Outlook
In the near term, there are some customer-specific dynamics that the Company is factoring into its outlook. Specifically, within U.S.-based service providers, their market dynamics, including M&A activity, are impacting both sequencing and timing of projects. This is partially offset by signs of strength in emerging verticals. The Company is focused on continued innovation and executing on its Integrated Operating Plan.

Juniper Networks estimates that for the quarter ending September 30, 2014:

  • Revenues will be in the range of $1,150 million to $1,200 million.

  • Non-GAAP gross margin will be approximately 64.0%, plus or minus 0.5%.

  • Non-GAAP operating expenses will be $505 million, plus or minus $5 million.

  • Non-GAAP operating margin will be roughly 21.0% at the midpoint of revenue guidance.

  • Non-GAAP net income per share will range between $0.35 and $0.40 on a diluted basis. This assumes a share count of 475 million and a non-GAAP tax rate flat to the second quarter.

  • Capital Allocation: The Company intends to opportunistically re-purchase a minimum of $550 million in addition to the ASR, by the end of the year.

    All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expense, acquisition-related charges, restructuring and related costs, impairment charges, litigation settlements and resolutions, non-routine stockholder activities, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets and income tax effect of non-GAAP exclusions. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

    Juniper Networks Inc. (NYSE: JNPR)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    Flash Poll
    From The Founder
    The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
    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.
    LRTV Huawei Video Resource Center
    Du Puts Its Faith in Huawei's Routers

    4|9|15   |   3:42   |   (0) comments


    Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
    LRTV Huawei Video Resource Center
    Huawei Gets Active in the Data Center

    4|9|15   |   3:17   |   (0) comments


    With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
    LRTV Huawei Video Resource Center
    Blue Consult & Huawei for a Better Solution

    4|8|15   |   4:01   |   (0) comments


    Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
    LRTV Huawei Video Resource Center
    Beach Petroleum on eLTE & Mining

    4|8|15   |   3:09   |   (0) comments


    Network systems integrator Jeremy Hamlyn explains how Huawei's secure packet-based trunking communications system, eLTE, can help remote communities and companies in the mining, oil and gas sectors, deploy efficient communications networks that are perfect for video and data as well as voice.
    Upcoming Live Events
    May 5, 2015, Hyatt McCormick Place, Chicago, IL
    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
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
    Hot Topics
    Verizon Scores New OTT Content Deals
    Mari Silbey, Independent Technology Editor, 4/16/2015
    Can WiFi Calling Find Its Voice?
    Iain Morris, News Editor, 4/13/2015
    Senator Proposes New 'Title X' for Net Neutrality
    Carol Wilson, Editor-at-large, 4/13/2015
    Nokia, Alcatel-Lucent in Merger Talks
    Iain Morris, News Editor, 4/14/2015
    Nokia & Alcatel-Lucent: What's Going On?
    Ray Le Maistre, Editor-in-chief, 4/15/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    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 ...
    LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
    Cats with Phones
    Steve's Phone Click Here
    Steve Saunders's personal phone.