Juniper Spreads Sunshine in Q3
Juniper didn't radically change its predictions, but its anticipated fourth-quarter revenues of $921 million to $971 million looks pessimistic next to the consensus analyst forecast of $967 million, as tallied by Reuters Research .
The company is still as optimistic as ever, CEO Kevin Johnson said on an earnings call this afternoon. But given the sudden disruption of the economy, particularly in the availability of credit, Juniper is "just being realistic about the fact that there are more unknowns in the market."
Perhaps because Juniper's forecast didn't miss entirely -- and didn't include, say, an upcoming $1 billion loss -- investors were pumped up. Juniper shares were up $1.45 (8.1%) at $19.28 in after-hours trading. (See Tellabs Sinks on $1B Loss.)
For the third quarter, Juniper delivered handily, with chairman Scott Kriens reiterating that the company's strength lies in providing a high-performance product that carriers can't afford to cut from budgets.
Juniper's revenues of $947 million beat analysts' expectations for $927 million, and Juniper's non-GAAP net income of 32 cents per share beat estimates of 30 cents.
"There is a very distinct market, within the overall communications industry, for high-performance networking, and our leadership in that market is emerging even more rapidly in challenging times," Kriens said, echoing a theory he's been espousing for some time.
Along similar lines, Ciena Corp. (NYSE: CIEN) CEO Gary Smith had recently asserted that the downturn, while it might last multiple quarters, would end up being short-lived. (See Still 'Short-Lived'.)
This was Scott Kriens's final earnings call as CEO; Kevin Johnson, ex of Microsoft Corp. (Nasdaq: MSFT), took over that role on Sept. 8. (See Kriens Steps Aside as Juniper CEO.)
For its third quarter, which ended Sept. 30, Juniper reported revenues of $947 million and net income of $148.5 million, or 27 cents per share -- up from the previous quarter's revenues of $879 million and net income of $120.4 million, or 22 cents per share. (See Juniper Reports Q3.)
For its third quarter a year ago, Juniper reported revenues of $735 million and net income of $85.1 million, or 15 cents per share. The boost in net income this year is the result of cost-cutting Juniper's gone through, Kriens noted during the call.
Service provider business grew 46 percent from the previous year, while enterprise sales grew 26 percent.
Juniper also noted that the third quarter saw $18 million in revenues from the new EX line of Ethernet switches, introduced in February. Bookings for the EX during the quarter more than doubled compared with the previous quarter, growing to more than $20 million. (See Juniper Storms Into Ethernet Switching.)
— Craig Matsumoto, West Coast Editor, Light Reading