Juniper Profits in Q1
The company reported a GAAP profit of $33.5 million, or $0.08 per share, on revenues of $224.1 million. That compares with a profit of $3.7 million, or $0.01 per share, on revenues of $157.2 million for the first quarter of 2003 (see Juniper Increases Q1 Profits).
Netscreen also came up big. The network security specialist's revenues for the quarter were $93.5 million, compared with $58.3 million for last year’s corresponding quarter.
Moving forward, Juniper predicts revenues for the combined company will be between $705 million and $720 million for the second half of the year. Without purchase accounting rules, the combined guidance would be between $720 million and $735 million.
Now the work of merging the two companies begins, and about 100 jobs in areas such as finance and IT will be cut from the combined entity. Down the road, some new positions will be created in areas such as sales and marketing.
Over the next 90 days, the two companies will be consolidating their facilities at Juniper's campus in Sunnyvale, Calif. The combined company will have around 2,500 employees.
Scott Kriens, chairman and CEO of Juniper Networks, used the call to dispel rumors that the merger was prompted by shortcomings in his company's product family. "There has been a lot written about Juniper's motivation for this move – this is an acquistion that joins strength with strength," he says. "Some speculated that we may have been motivated by a weakness in our business – and that's wrong." — James Rogers, Site Editor, Next-gen Data Center Forum