Juniper Scores in Q4

Juniper Networks Inc. (NYSE: JNPR) might have had some rocky headlines lately, especially with its chief operating officer departing, but its earnings report delivered today ended 2007 with a bang.

For the fourth quarter ended December 31, Juniper reported revenues of $809.2 million and net income of $127.9 million, or 22 cents per share, ahead of third-quarter revenues of $735 million and net income of $85.1 million, or 15 cents per share.

For its fourth quarter a year ago, Juniper reported revenues of $595.8 million and net income of $71 million, or 12 cents per share.

Non-GAAP earnings of 27 cents per share beat the analyst forecast of 24 cents as tallied by Thomson Financial .

Juniper shares were up $1.20 (4.6%) at $27.50 each in early after-hours trading Thursday.

It's been a tumultuous month for Juniper. The company's prized chief operating officer, former Macromedia CEO Stephen Elop, left the company after just one year of service. And Juniper confirmed it's discontinuing the DX line of enterprise gear from its 2005 acquisition of Redline Networks. (See Juniper COO Elopes With Microsoft and Juniper Flatlines Redline.)

But naturally, the company had good news to announce alongside its upbeat earnings numbers. During a conference call with analysts, CEO Scott Kriens noted that the MX series of Ethernet gear is selling at a run rate of $200 million per year -- up from the pace of $100 million per annum it was seeing just three months ago. (See Juniper Gains Ethernet Mojo.)

— Craig Matsumoto, West Coast Editor, Light Reading

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Pete Baldwin 12/5/2012 | 3:49:23 PM
re: Juniper Scores in Q4 Update on the conf call: Juniper says it'll hire outside for a new COO (which I think they said previously). Kriens says he's got a deep enough executive team that he's not sweating the timeframe - i.e. if it takes a long time, that's OK. Processes set in motion by Elop will still be in place and humming along anyway, he says.
lightreceding 12/5/2012 | 3:49:20 PM
re: Juniper Scores in Q4 Almost forgot three others

Pradeep Sindhu - CTO - founder

Stephen Rice - HR +1 year

New addition
Robert Denholm - CFO - SUN

I just wondering how long the Elop appointees will last.
lightreceding 12/5/2012 | 3:49:20 PM
re: Juniper Scores in Q4 I guess Kriens would play down the high turn over in his management team. When he announced Elop he said how confident he was in the fit after 6 months of interviewing, then Elop leaves after 1 year. How much could Elop have done?

Juniper lacks an Enterprise infrastructure such as CRM, and online ordering. Those things take years to implement. At most Elop might have broken down some of the internal resistence to change.

Departed Juniper Execs in last two years.
Stephen Elop - COO
Robert Dykes - CFO
Paulette Altmaier - GM
Rob Sturgeon - GM
Jef Lindholm - CMO
Jim Dolche - SVP

Execs with 1+ years
Kim Perdikou - SVP
Eddie Minsull - SVP
Alan Boehme - CIO

New Additions - All Elop appointments with no networking industry background.
Mark Bauhaus - SUN - EVP Enterprise
Penny Wilson - Marketing - Macromedia
Haley Tabor - Sales - CA
myhui 12/5/2012 | 3:49:19 PM
re: Juniper Scores in Q4 I sincerely hope it is that, rather than anything else related to Juniper.

Or ...

Is it because Pradeep still holds veto power?

Is it because Elop didn't bring in the right people?

Is it because there are serious flaws on the engineering team, so bad that Elop thinks he can't fix them?
tsat 12/5/2012 | 3:49:19 PM
re: Juniper Scores in Q4 Maybe Elop's departure had more to do with getting in line to be CEO of Microsoft then with anything related to Juniper?

bollocks187 12/5/2012 | 3:49:18 PM
re: Juniper Scores in Q4 Lightreceding is n to something there with the management churn at juniper.

As for Elop - give me a break he is a "no talent" person to fix or improve anything at Juniper - except perhaps the IT tools - it is not his space.

Scott does not want to hire anyone that would eventually challenge is position. If he watned that he would have hired someone with some talent for the industry that Juniper services.
chook0 12/5/2012 | 3:49:17 PM
re: Juniper Scores in Q4 Folks,

it's a fact that the job that Elop went to at Microsoft is a significantly bigger job than the one he had at Juniper.

The blind speculations of a few people on this board might hold more water had he gone sideways or downwards.

As for me, I'll just apply Occam's razor which says Elop saw the Microsoft opportunity as a career advancement he had to take, even if it meant skipping out on a job at Juniper that was only partly done. Business is business.

But skipping out a year and a day after joining the company is pretty-much dudding the shareholders. Doesn't reflect well on Elop in my book.

I don't buy the whole "networking isn't Elop's industryGÇ£ thing. He was COO, not CTO. You can pick up what you need to know about the industry as you go along. What you need is a talent for the numbers and the ability to smell bull**** a mile away, which people tell me he seems to have.

bollocks187 12/5/2012 | 3:49:13 PM
re: Juniper Scores in Q4 Crook,

As COO you, to do this role effectively you need to be "networking savvy".

As for the Bull**** well its a pity the Juniper BoD and CEO could not see thro the Bull*** when they hired him in the first place.

I guess he just "eloped" for a better partner - good luck to him lets hope we don't hear about his divorce in the future.

lightreceding 12/5/2012 | 3:49:12 PM
re: Juniper Scores in Q4 Chook said: "What you need is a talent for the numbers and the ability to smell bull**** a mile away, which people tell me he seems to have."

So you are saying that he saw that the numbers don't jive at Juniper and he smelled the bull**** that Kriens was blowing and he left.
lightreceding 12/5/2012 | 3:49:07 PM
re: Juniper Scores in Q4 besides some incremental revenue from the MX it was cost cutting by Elop that lead to the higher profits, but he did it by killing products like the DX and he has hurt Junipers crediblity by stranding customers and knocking the stuffing out of Kreins story about an application aware network. This kind of blunder is what you would expect from someone who is not in the industry.
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