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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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roams27668 12/5/2012 | 3:48:42 PM
re: Juniper Scores in Q4 The company cannot continue to shed good talent at the pace they are.

They fired the entire inside sales team for the enterprise within the past two weeks. Gee, let's do more business in the enterprise space by firing the inside sales team. That makes sense.

I know the top enterprise team on the west coast left to a wireless vendor (rhymes with Oruba).

They folded the DX line.

The WX line is pathetic (at best).

The IPS line is a joke.

I could go on, but why?
bollocks187 12/5/2012 | 3:48:44 PM
re: Juniper Scores in Q4 Enough said on COO..

Juniper is doing well with or without him.

Net is Chook he was a fish out of water - really
chook0 12/5/2012 | 3:48:49 PM
re: Juniper Scores in Q4 These were gone before Elop arrived, with the possible exception of the VF which was dying by then anyhow. And the J20 was a product made exclusively for Ericsson so it was really killed by Ericsson after they bought Redback. You are struggling here.

"other products killed by Juniper:

J20 GGSN for Mobile Data
G-series CMTS
VF-series Session Border Controller"
lightreceding 12/5/2012 | 3:48:55 PM
re: Juniper Scores in Q4 other products killed by Juniper:

J20 GGSN for Mobile Data
G-series CMTS
VF-series Session Border Controller
lightreceding 12/5/2012 | 3:48:57 PM
re: Juniper Scores in Q4 More Execs who have left Juniper in the last two years.

Tushar Kothari - Head of Channels
Neal Oristano - SVP Sales
Kitu Kollari - GM Security
Carol Mills - GM Routing
George Riedel - VP Corp Dev
Jeff Graham - GM Application Networking
Christine Heckart - CMO
Tony Scarfo - Alliances
chook0 12/5/2012 | 3:49:06 PM
re: Juniper Scores in Q4 Hmm. They said MX revenue had reached "$200M Run Rate" by Q4, yet revenues in 2007 were up more than $500M over 2006 and there were no acquisitions in 2006. Methinks your prejudice has clouded your ability to to arithmetic. The business is definitely growing.

I have a bit more sympathy with your second point. The DX worked and If I were a DX customer I would be pretty unhappy right now. Mind you, having worked in a company in the past that always had more projects than it could properly fund, I can see the other side as well. The DX was in a market where there are other good products to be had. Nobody except the few people who already have DX will miss it.

You say "products like the DX". As a matter of interest, what other products did he kill?

--chook

"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."
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.
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.
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.




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 industryG«£ 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.

--chook
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