Juniper Reports Strong Quarter
The company reported net income of $85.1 million, or 15 cents a share, on sales of $735 million for the third quarter. That compares with net income of $58.3 million, or 10 cents a share, on sales of $573.6 million for the year-ago quarter.
Excluding certain items, net income for the third quarter 2007 was $124.5 million, or $0.22 per share, compared with $106.2 million, or $0.18 per share, for the previous year's third quarter.
By growing revenues 28 percent, Juniper handily beat Wall Street revenue expectations of $709.8 million for the quarter. The company also beat analyst expectations for earnings by a penny, according to Thomson Financial .
Juniper improved gross margins, growing them to 69 percent in the quarter, which was above Wall Street expectations of 67 percent. Operating margins were inline, at 21 percent.
Growth was driven by strength in the company's infrastructure or routing segment, which was up 35 percent year over year to $464.7 million. Meanwhile, the company's service layer technology business grew 17 percent to $142.1 million. Services revenue grew 21 percent, to $128.3 million.
Analysts expect the strength to continue. In a note issued after the earnings release, Lehman Brothers analyst Inder Singh wrote, "We believe JNPR's strong set of product introductions (MX series, T1600, SSG, etc.) will ramp through '08, as should NTT Communications Corp. (NYSE: NTT), and it should be a leading beneficiary of NGN (next-generation network) builds, while, with the focus of COO Stephen Elop, its enterprise business should gain momentum and expand operating margins."
— Ryan Lawler, Reporter, Light Reading