Light Reading
With a software-defined networking (SDN) plan and decent Q4 numbers, Juniper says it's ready to play offense

Juniper Pictures a Rosy 2013

Craig Matsumoto
News Analysis
Craig Matsumoto
1/24/2013
50%
50%

Despite undergoing layoffs in the fall, and despite a disappointing showing for some of its new products so far, Juniper Networks Inc. insists it's playing on offense. Juniper has some hope for showing stronger numbers, anyway, because it does appear that AT&T Inc. and Verizon Communications Inc. are starting to revive capital spending, as expected. At issue is the fact that data traffic continues to grow, and carriers that have muted their spending can't run their networks hot forever. "I think we're about to enter a new cycle for routing growth," said Kevin Johnson, Juniper's CEO. "We had a strong quarter with our Tier 1 U.S. service providers." That growth has tended to be on the network edge, which had an unfortunate side effect: Juniper's T4000 core router saw sales decline, officials said. (Whether that was compared with the previous quarter or previous year wasn't clear.) The company is also claiming to be on the offense when it comes to software-defined networking (SDN). Juniper had stayed quiet on the subject during 2012 -- by choice, company officials claim -- and unveiled parts of its plan earlier this month. (See Juniper's SDN Will Build Service Chains and Juniper Buys Contrail for (More) SDN Smarts.) As analyst Tom Nolle of CIMI Corp. notes, Juniper's plan focuses on moving more functions into software; that's a plan closer to the Network Functions Virtualization (NFV) initiative than to most definitions of SDN. (See Carriers Peer Into Virtual World.) Even with SDN in the picture, much of Juniper's future is pinned on five relatively new products: the T4000 core router, the QFabric data-center fabric, the MobileNext evolved packet core, the PTX packet-optical transport system and the ACX access router. Juniper is on track to make its goals for 2013 for those products, Johnson said. The company wants to get $150 million per quarter in revenues out of them, as a whole. QFabric has been the most closely watched because it got off to such a slow start; in fact, Juniper ended up creating a smaller version because so many customers didn't want the full-blown fabric. Juniper added 130 QFabric customers during the fourth quarter, Johnson said, but it's not clear how many of those simply bought the QFX3500 top-of-rack switch, which counts as part of QFabric but doesn't imply the customer will buy the other QFabric pieces. For its fourth quarter, which ended Dec. 31, Juniper reported revenues of $1.14 billion and net income of $95.7 million, or $0.19 per share, compared with year-ago revenues of $1.12 billion and net income of $96.2 million, or $0.18 per share. Non-GAAP earnings of $0.28 per share were $0.06 better than the analysts' estimate compiled by Thomson Reuters. But Juniper's first-quarter forecast could be considered light. The company expects first-quarter revenues of $1.05 billion to $1.07 billion, and analysts' forecasts average out to $1.07 billion, the top of the range. Juniper shares were up $0.15 (0.7 percent) at $21.65 in after-hours trading Thursday. — Craig Matsumoto, Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
TomNolle
50%
50%
TomNolle,
User Rank: Light Sabre
1/26/2013 | 12:54:26 PM
re: Juniper Pictures a Rosy 2013
That's kind of the issue with JNPR. -áThey have a 40x P/E multiple in an industry with a 10x model (Cisco's is about 12x). -áThat kind of multiple means massive expected future earnings growth and you need to have a specific plan that first finds a market big enough and second finds differentiators strong enough for you to win in it. -áI think Juniper has the technology pieces but they've not embraced the cloud as their market opportunity or shown why they're far superior to others in networking the cloud.
Bob Saccamano
50%
50%
Bob Saccamano,
User Rank: Light Beer
1/25/2013 | 9:48:03 PM
re: Juniper Pictures a Rosy 2013
Any comments about getting to the 20% revenue growth target vs the 2% to down-áwe have been seeing?-á Also, is there any information about when and what products will actually be launched?-á Unlike many who see little starbursts-áwhenever a Juniper exec puts up "vision" slides, I am not going to be burned again.-á I need real.
TomNolle
50%
50%
TomNolle,
User Rank: Light Sabre
1/25/2013 | 3:22:09 PM
re: Juniper Pictures a Rosy 2013
I think the key to Juniper's success in 2013 will be exploiting the cloud, Craig. -áOperators are finding the cloud is both a revenue source and a platform for implementing SDN and NFV, and enterprises say it's the most significant driver of data center change. -áA good story that links cloud, SDN, and NFV would really resonate.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
LRTV Documentaries
The Rise of Virtual CPE

1|27|15   |   01:38   |   (5) comments


As NFV strategies evolve from tests and trials to production telco networks, expect to hear a lot about virtual CPE (customer premises equipment) rollouts during 2015.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
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
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Google Continues Gigabit Expansion
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/27/2015
Comcast Apologizes to 'A**hole' Brown
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/29/2015
Cablevision's New WiFi Try – Freewheeling Enough?
Mari Silbey, Independent Technology Editor, 1/26/2015
Overture Builds on NFV Foundation
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/27/2015
Bumper iPhone Sales Boost Apple Profits
Iain Morris, News Editor, 1/28/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Weekly Executive Interview
Join us live for Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he has to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.