That's because of a goodwill writeoff the company had announced in July, at the same time it was saying it would restate earnings due to stock-options irregularities. (See Juniper Dusts Off Its Eraser.) As Juniper's stock price declined, so did the value of its acquisitions, forcing the company to take on-paper losses. Its cash balances aren't affected by the writeoffs, though.
Juniper's goodwill writeoff of $1.28 billion -- on par with Juniper's expectations -- was packed into its earnings for its second quarter, which ended June 30. That brought the quarter's losses to $1.21 billion, $2.13 per share, on revenues of $567 million.
In non-GAAP terms, where the writeoff isn't counted, Juniper's profits for that quarter totaled 18 cents per share, a penny less than analysts' estimates, according to Reuters Research .
For all of 2006, Juniper's non-GAAP net income met analysts' consensus forecast of 74 cents per share.
Juniper also recalculated its net income for the years going back to 2002, refiguring its stock-options accounting after an internal audit discovered some options were improperly dated.
The revised figures don't differ much from the original reports in 2005 and 2004. It's 2003 and especially 2002 that show big effects, with the latter year's losses growing by 40 percent, to 48 cents per share, when proper expensing of stock options was taken into account.
Table 1: Juniper's New History
|Reported net income ($M) /
|Revised net income ($M) /
|Source: Juniper Networks. All figures GAAP.|
Investors didn't seem to care much. Juniper's stock was up 14 cents (0.8%) at $18.45 late in the day.
— Craig Matsumoto, West Coast Editor, Light Reading