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Juniper Beats, Forecast Flat

Juniper Networks Inc. (Nasdaq: JNPR) beat revenue expectations today as it reported second-quarter results for the period ended June 30, 2003. But company officials remain cautious moving forward, saying they expect business to remain flat in the next quarter.

“We’re encouraged by industry trends,” said CEO Scott Kriens on the earnings call. “But we will be careful of the exact pace of the migration. We all know where the industry is going, but it remains difficult to predict the timing.”

The company reported net revenues for the second quarter of $165.1 million. This is compared to $157.2 million in the first quarter and $117 million for the same period last year.

Management expected revenues to be between $157 million and $160 million. Consensus estimates had revenues around $160 million. The company posted a second-quarter net profit of $13.6 million, or $0.03 a share, compared with the year-ago quarter's net income of $6.2 million, or $0.02 a share.

LM Ericsson (Nasdaq: ERICY) and Siemens AG (NYSE: SI; Frankfurt: SIE) were once again 10 percent customers.

Kriens emphasized the importance of Juniper’s partnerships, touting the progress of its most recent deal with Lucent Technologies Inc. (NYSE: LU) (see Lucent Partners With Juniper). While he wouldn’t get into specifics, he did say that the Lucent partnership has already started to generate revenue for the company, and the two are already working on joint product development.

One of the more encouraging aspects of the call was the fact that company officials said they'd seen an uptick in sales in North America, mainly due to business from incumbent carriers, the U.S. federal government, and cable operators (see DISA Deal D-Day Approaches).

Juniper improved its position with the incumbent service providers in the quarter. It announced that Verizon Communications Inc. (NYSE: VZ) had signed a multiyear contract to purchase E-series routers for its network edge (see Juniper Goes Public With Verizon). The company has also gotten more traction from BellSouth Corp. (NYSE: BLS), which has deployed Juniper core routers at its peering points (see BellSouth Chooses Cisco (and Lucent)).

While Juniper has made progress on this front, it is facing the usual tough competition from its main competitor Cisco Systems Inc. (Nasdaq: CSCO), which may also have won business at Verizon for its core router (see Juniper Loses Ground to Cisco at Verizon).

Despite beating expectations for the second quarter in a row, the company still provided flat guidance for the next quarter.

"The visibility going into next quarter is similar to the past two quarters," said Marcel Gani, the company's CFO. "We have to remain prudent going forward."

— Marguerite Reardon, Senior Editor, Light Reading

change_is_good 12/4/2012 | 11:46:34 PM
re: Juniper Beats, Forecast Flat just manage it baby... but don't get too close to lucent. what happened to dolce leaving?
Iagojrh 12/4/2012 | 11:46:21 PM
re: Juniper Beats, Forecast Flat I hear Dolce's really taken to California living and is looking at the CEO gig at Procket
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