x
Optical/IP

Juniper Reports Strong Quarter

Juniper Networks Inc. (NYSE: JNPR) posted strong results for the third quarter, beating analyst estimates and increasing its gross margin.

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

Pete Baldwin 12/5/2012 | 3:00:19 PM
re: Juniper Reports Strong Quarter So, does Juniper end up buying a wireless vendor like Trapeze?

http://www.unstrung.com/docume...
myhui 12/5/2012 | 3:00:16 PM
re: Juniper Reports Strong Quarter Why bother?

Use Broadcom chips for the physical layer, and an internal or merchant chip for the network layer.

Then modify existing software to run the new platform.

materialgirl 12/5/2012 | 3:00:16 PM
re: Juniper Reports Strong Quarter Maybe they should buy RVBD or BCSI first.
Pete Baldwin 12/5/2012 | 3:00:15 PM
re: Juniper Reports Strong Quarter Myhui -- good point, and you may be right.

Does the same argument extend to WiMax eventually? Not necessarily using Broadcom's name, but the idea that merchant chips and a software tweak are enough?

Put it another way - Does someone like a Cisco need to buy someone like a Navini?
gotman 12/5/2012 | 3:00:14 PM
re: Juniper Reports Strong Quarter Cisco is a big cat, hard to move, everyone wants to be involved, which is good and bad. So buying Navini with its customer, its solution and the knowhow is a damn good idea.

Cisco will make its money on the acq in a year... They just do this over and over so well.
delphi 12/5/2012 | 3:00:14 PM
re: Juniper Reports Strong Quarter I may have missed the point here.

Wireless is so far afield of Juniper's core competancies why would they even consider such a move.

Their move into Ethernet has been dismal. The Tier 1 carriers keep them alive in the core to keep Cisco pricing down.

If the carriers give Juniper 20%+ of the core that is a great market share for now effort on Juniper's part.

The question how much did they spend on internal Ethernet switch development vs. the return based on their footprint.

Cisco launches new are acquired products into their footprint and Juniper has shown they cannot do the same.

Again, why in the world would they go int wireless?
Pete Baldwin 12/5/2012 | 3:00:12 PM
re: Juniper Reports Strong Quarter Delphi - Don't worry, there isn't that much of a "point," speaking for myself. Juniper's been rumored to be looking at wireless -- presumably a way to beef up the enterprise portfolio -- and I was just playing off that.

Isn't it a bit early to call the Ethernet move "dismal?" Most analysts I've talked to seem pretty pleased with how the MX960 has done so far. It's still early days.

Development of the platform might have been relatively cheap, given Juniper (reportedly) used off-the-shelf components.
myhui 12/5/2012 | 3:00:09 PM
re: Juniper Reports Strong Quarter Delphi, does wireless require a whole new set of competencies?

Hardly!

If you want to come up with a physical layer chip that's better than Broadcom's, Marvel's, and Atheros', then yes, that's hard.

But I was talking about using those suppliers' chips for physical layer, and just taking care of the network layer internally. And that part is certainly a core competency of Juniper Networks.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE