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Routing

Juniper Cuts Q1 Forecast

Shares of Juniper Networks Inc. (NYSE: JNPR) are up nearly 10 percent in after-hours trading today, after the company said first-quarter revenues would sag, but profits would not.

It's the latter point that investors seem to like. Juniper had set the cost-cutting wheels in motion late last year, lowering executive salaries and cutting other costs while planning to leave R&D intact. (See Juniper Tightens Its Belt.)

Analysts doubted the plan -- which appeared to leave Juniper no recourse if revenues worsened -- but so far, it looks like it's worked.

While revenues for the quarter ended in March will be $760 million to $765 million -- well down from the $800 million to $830 million Juniper had predicted -- net income will be 16 or 17 cents per share, about what Juniper was expecting. (See Juniper Lowers Forecast.)

What's amusing is that Wall Street didn't quite believe Juniper's forecast in the first place. Analysts polled by Thomson agreed on net income of 17 cents per share, but their average revenue prediction was just $794 million.

Juniper stock was trading up $1.43 (9.1%) at $17.05 in early after-hours trading.

Juniper reports earnings on April 23.

— Craig Matsumoto, West Coast Editor, Light Reading

Light-bulb 12/5/2012 | 4:07:29 PM
re: Juniper Cuts Q1 Forecast

Interested in your opinions, as this is what I'm currently thinking...


 


40G/slot router...  I'm sorry this is innovation?  To me this is evolution.  ASIC's naturally evolve and just because you get the first spin in doesn't mean your innovating, you just hit the product lifecycle.


As to the CRS, You don't honestly compare anything Juniper has to the CRS do you?  I've been fortunate enough to build a large CRS and I can tell you with nearly 1000 GE interfaces, and 100 10GE interfaces I can't think of any router in the world that comes close.  Not too mention my install needed every 1Gb port to stream 800Mb/s of Multicast traffic.  I think the last time I had a T640 in a lab the thing melted when I tried to run QoS and Multicast on the box.  But the argument from the Juniper SE is "It's a Core Router, you'd never do that on a Core Router..."  


 


Juniper has a modular OS?  I guess I have been thinking this whole time it was BSD?  


Do you want to compare IOS-XR to JUNOS?  One is a Unix monolithic FreeBSD Hack, the other was a purpose built Router on a real microkernel.  As to being Open?  How is that going for you?  Do you have customer compiling their own applications on your hardware?  How is that to support?  FreeBSD shows it's problems on a distribution of Control plane and is the very reason Juniper is having to throw in another Rack to help take care of control plane.  


 


Juniper has a bi-directional 100Gb/slot capability?  I had heard it was no more than 50G currently due to processor limitations?  So I'm guessing you are a Juniper employee have you actually verified 100Gb of traffic bi-directional l3 traffic between slots?  That would be an interesting result.  


As to Cisco I only know what I've tested, and what has been communicated via the vaporware slides, but they say the device will support to 100G Ethernet.  My guess is when they say they have the cards that they will be able to provide bi-directional bandwidth of at least 100G per slot. 


To all these points, I think this is the very reason a showdown would be awesome between Juniper and Cisco on a core router doing things core routers do today.


The standards based BGP updates, I seem to recall members of both Cisco and Juniper on the lists, along with ATT and other Tier 1s.


 


As to your list of where Juniper is innovating...


NAC, Ethernet Switching, SSL, Wan optimization... you are kidding right?  None of these are stand-out.  None of them lead the market, and none of them are going to win Juniper inroads because they offer either nothing or very little that shows leadership in these markets.  Don't even get me stated on the joke of FcOE, they are following Cisco step-in-step.  Why can't companies completely change the paradigms and bring something truly innovative to the network world.  I don't know about you, but I'm bored. We haven't had anything ultra sexy in years, it's just more of the same boring crap, just faster. 


 

Light-bulb 12/5/2012 | 4:07:29 PM
re: Juniper Cuts Q1 Forecast

I suppose I look at metro more than long-haul.  I believe the ROADM mesh deployments were going heavily to Cisco, is this not the case?  What about integrated DWDM and tunables on L3 devices?


 


Optical in it's very nature has evolved past pure mux's of yesteryear.  If you need proof see Nortel.  


 

tsat 12/5/2012 | 4:07:30 PM
re: Juniper Cuts Q1 Forecast

You forgot first multichassis core router

joosh22 12/5/2012 | 4:07:30 PM
re: Juniper Cuts Q1 Forecast

...mmm...innovation:


  Juniper delivered the first asic based router supporting line rate forwarding.


   Then others came.


  Juniper delivered the first 40G/slot router.


   Then Cisco released the CRS.


  Juniper delivered the first modular OS.


   Then Cisco released IOS-XR and others.


  Juniper delivered the first 100G/slot router.


   Then...nothing happened yet.


  Juniper has been driving innovation in MPLS services as none else has done yet:


   BGP based autodiscovery on VPLS, MPLS point to multipoint, Next Gen Multicast VPNs, among others. 


  Juniper has been the first to truly open the OS to third parties. 


  Juniper is really innovating in the areas of Firewalls, SSL, WAN optimization, NAC, Ethernet switching,  etc. 


And innovation is not only about "inventing" things, is also about doing things better. 


Cisco is a phenomenal company, a reference for many others, including for Juniper, Cisco drives innovation in many areas, and I hope they will continue to do so, as it really challenges others and improves our industry. 


 But I do not think Juniper is a follower. As a Juniper and Cisco user, in the routing and security world, Juniper is not a follower at all.


 


 


 

DPD 12/5/2012 | 4:07:32 PM
re: Juniper Cuts Q1 Forecast

Yeah, it must blow having $2B+ in cash and no debt. It must be more troubling to gain market share on CSCO YOY.

Light-bulb 12/5/2012 | 4:07:32 PM
re: Juniper Cuts Q1 Forecast

Is it true that Juniper is having to shut down in July for 17 days?  I've heard rumor that they are going to shut off the lights and power down for a mandatory 17 days for their folks?  Is this only for a certain portion or is this for everyone?


 


I also have to agree with another poster, when you think innovation you certainly don't think Juniper.  It's really too bad, why is it that most of the innovation we see in layer3, and even optical comes from Cisco?  


 


It's a perpetual cat & mouse game where the mainstream IC vendors play catch up with Cisco and build commodity chips for others to use and on and on.  In all seriousness I wonder what other vendors put out in terms of ASIC development?  


I remember just last year how Brocade said FcOE was never going to be the right approach and how Ethernet was just not good enough yadda yadda... then they buy Foundry?  It seems to me that Cisco sets the table and everyone comes to eat what they are serving.  Sure someone at the table may offer a different sauce, but the main courses are not changing.  No one is building their own table and their own meal, just the same ole' same ole.


Maybe innovation and start-up capital are just stalled in this economy? 

heretoday 12/5/2012 | 4:07:32 PM
re: Juniper Cuts Q1 Forecast Cisco is innovative in Optical.... ha ha ha name ONE tier 1 service provider that has picked them for Ultra Long Haul, Packt-Optical Trasnport System, MSPP.... and 8 year old ONS 15454 don't count...
netsalesman 12/5/2012 | 4:07:34 PM
re: Juniper Cuts Q1 Forecast

Juniper is the company it is because the market need a second supplier.There's coke and there's pepsi, there's gatorade and powerade, mcdonald and burger king and..CISCO and Juniper. Juniper is an honest company but nothing more than that. The real term for them is follower.


They never really innovate, they just try to make better something that already exists.  IOS has been a pioneer , then came JunOS. Very similar, maybe even better (more stable) but where's the novelty?


Same can be said of all their portfolio. Now they are talking they are going after FcOE (or data center buzz). Again, CISCO , love or hate it, has today a complete offering in that space.Juniper follows.


Don't get me wrong, Juniper is ok, products are ok. But trust me, the distance between JNPR and CSCO is more than Chamber's oratory...

Honestly 12/5/2012 | 4:07:36 PM
re: Juniper Cuts Q1 Forecast

Wall St has its doubts about Juniper becuase Juniper IR, corp communications communicates poorly.  The way things are broken out often confuses and frustrates Wall St. 


I think Juniper is a quality, straight up company, but really needs to trust its marketing people and needs to change its IR culture.  When Juniper is asked a clear question, the response is most always something that few can easily understand and that appears to be deflection.  Chambers is a master communicator, If Juniper improved here they would really clean Cisco's clock.


It always takes the QTR, or a announcement with real numbers to chill the fear on JNPR because no one ever gets a clear warm fuzzy freeling from them.


Just imagine If they did.

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