SUNNYVALE, CA--(Marketwire - Jul 24, 2012) - Juniper Networks (NYSE: JNPR)
- Revenue: $1,074 million, up 4% from Q1'12 and down 4% from Q2'11
- Operating Margin: 8.1% GAAP; 15.0% non-GAAP
- GAAP Net Income Per Share: $0.11 diluted
- Non-GAAP Net Income Per Share: $0.19 diluted, up 19% from Q1'12 and down 39% from Q2'11
Juniper Networks (NYSE: JNPR), the industry leader in network innovation, today reported preliminary financial results for the three and six months ended June 30, 2012, and provided its outlook for the three months ending September 30, 2012.
Net revenues for the second quarter of 2012 increased 4% sequentially, and decreased 4% on a year-over-year basis, to $1,074 million.
The Company posted GAAP net income of $58 million, or $0.11 per diluted share, and non-GAAP net income of $103 million, or $0.19 per diluted share, for the second quarter of 2012.
Non-GAAP net income per diluted share increased 19% compared to the first quarter of 2012, and decreased 39% compared to the second quarter of 2011. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Share-Based Compensation Related Payroll Tax by Category table below.
"Juniper's second quarter results delivered sequential top line growth as a result of our focus on execution," said Kevin Johnson, CEO of Juniper Networks. "New products continued to gain traction in the marketplace with key customer wins across our portfolio. In a challenging macro environment, we remain focused on our operational execution, delivering great products, driving revenue and managing our cost base."
Juniper's operating margin for the second quarter of 2012 increased to 8.1% on a GAAP basis from 4.6% in the first quarter of 2012, and decreased from 15.3% in the second quarter of 2011. Non-GAAP operating margin for the second quarter of 2012 increased to 15.0% from 12.0% in the first quarter of 2012 and decreased from 21.6% in the second quarter of 2011.
"In the second quarter Juniper delivered revenue, margins and earnings ahead of our guidance," said Robyn Denholm, CFO of Juniper Networks. "While customers remain cautious in their investment activity near-term, we are focused on executing our strategy to deliver revenue growth while driving disciplined cost management."
Other Financial Highlights
Total cash, cash equivalents and investments as of June 30, 2012 were $4,272 million, compared to $4,216 million as of March 31, 2012 and $4,220 million as of June 30, 2011.
Juniper generated net cash from operations for the second quarter of 2012 of $212 million, compared to net cash provided by operations of $102 million in the first quarter of 2012, and $318 million in the second quarter of 2011.
Days sales outstanding in accounts receivable ("DSO") was 34 days in the second quarter of 2012, compared to 39 days in the first quarter of 2012 and 39 days in the second quarter of 2011.
Juniper repurchased approximately 5 million shares in the second quarter of 2012, at an average price of $18.76 per share, or approximately $94 million.
Capital expenditures, as well as depreciation and amortization of intangible assets expense during the second quarter of 2012, were $88 million and $46 million, respectively.
Outlook
While the long-term fundamentals driving demand for high-performance networking remain solid, our outlook for the September quarter reflects continued near-term macro uncertainty. While our new products are resonating with our customers, many customers continue to be cautious about their investment prioritization and timing around project deployments. We remain focused on prudently managing our business to ensure disciplined operational execution.
- Juniper estimates revenue for the third quarter ending September 30, 2012 to be in the range of $1,040 million to $1,075 million.
- Juniper estimates that its non-GAAP gross margin for the third quarter will be roughly flat, at the high end of the revenue range.
- Juniper expects its non-GAAP operating margin for the third quarter will be in the range of 13% to 14%.
- Juniper estimates that its non-GAAP net income per share will range between $0.15 and $0.18 on a diluted basis, assuming a flat share count and estimated non-GAAP tax rate of 31%. The non-GAAP EPS estimate includes a dilutive impact of approximately $0.02 per share due to net interest expense from our debt.
All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition related charges, restructuring charges, litigation settlement charges, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and income tax effect of non-GAAP exclusions. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
Conference Call Webcast
Juniper Networks will host a conference call web cast today, July 24, 2012 at 2:00 p.m. (Pacific Time), to be broadcast live over the Internet at: http://www.juniper.net/company/investor/conferencecall.html.
To participate via telephone, in the U.S. the toll free dial-in number is 877-407-8033; outside of the U.S. dial +1-201-689-8033. Please call 10 minutes prior to the scheduled conference call time. The webcast replay of the conference call will be archived on the Juniper Networks website.
About Juniper Networks
Juniper Networks is in the business of network innovation. From devices to data centers, from consumers to cloud providers, Juniper Networks delivers the software, silicon and systems that transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on Twitter and Facebook.
Juniper Networks and Junos are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks and Junos logos are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.
Statements in this release concerning Juniper Networks' business outlook, economic and market outlook, future financial and operating results, and overall future prospects are forward-looking statements that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: general economic conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending and spending by communication service providers; the network capacity requirements of communication service providers; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; manufacturing and supply chain constraints; ability to establish and maintain relationships with distributors, resellers and other partners; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation; and other factors listed in Juniper Networks' most recent report on Form 10-Q filed with the Securities and Exchange Commission. All statements made in this press release are made only as of the date set forth at the beginning of this release. Juniper Networks undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release.
Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the discussion below.
| |
|
| |
|
| Juniper Networks, Inc. |
|
| Preliminary Condensed Consolidated Statements of Operations |
|
| (in thousands, except per share amounts) |
|
| (unaudited) |
|
| |
|
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Product |
|
$ |
804,662 |
|
|
$ |
891,428 |
|
|
$ |
1,576,535 |
|
|
$ |
1,768,868 |
|
| |
Service |
|
|
269,097 |
|
|
|
229,116 |
|
|
|
529,722 |
|
|
|
453,288 |
|
| |
|
Total net revenues |
|
|
1,073,759 |
|
|
|
1,120,544 |
|
|
|
2,106,257 |
|
|
|
2,222,156 |
|
| Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Product |
|
|
292,589 |
|
|
|
292,391 |
|
|
| 573,218 |
|
|
|
558,137 |
|
| |
Service |
|
|
113,297 |
|
|
|
105,987 |
|
|
|
231,111 |
|
|
|
205,968 |
|
| |
|
Total cost of revenues |
|
|
405,886 |
|
|
|
398,378 |
|
|
|
804,329 |
|
|
|
764,105 |
|
| Gross margin |
|
|
667,873 |
|
|
|
722,166 |
|
|
|
1,301,928 |
|
|
|
1,458,051 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Research and development |
|
|
268,734 |
|
|
|
257,250 |
|
|
|
538,336 |
|
|
|
519,229 |
|
| |
Sales and marketing |
|
|
259,455 |
|
|
|
246,635 |
|
|
|
517,174 |
|
|
|
492,926 |
|
| |
General and administrative |
|
|
48,775 |
| |
|
44,260 |
|
|
|
103,441 |
|
|
|
89,184 |
|
| |
Amortization of purchased intangible assets |
|
|
1,236 |
|
|
|
1,332 |
|
|
|
2,414 |
|
|
|
2,876 |
|
| |
Restructuring |
|
|
3,161 |
|
|
|
(916 |
) |
|
|
5,200 |
|
|
|
(1,263 |
) |
| |
Acquisition-related |
|
|
(206 |
) |
|
|
2,685 |
|
|
|
936 |
|
|
|
6,786 |
|
| |
|
Total operating expenses |
|
|
581,155 |
|
|
|
551,246 |
|
|
|
1,167,501 |
|
|
|
1,109,738 |
|
| Operating income |
|
|
86,718 |
|
|
|
170,920 |
|
|
|
134,427 |
|
|
|
348,313 |
|
| Other income (expense), net |
|
|
2,770 |
|
|
|
(13,688 |
) |
|
|
(21,661 |
) |
|
| (20,150 |
) |
| Income before income taxes and noncontrolling interest |
|
|
89,488 |
|
|
|
157,232 |
|
|
|
112,766 |
|
|
|
328,163 |
|
| Income tax provision |
|
|
31,769 |
|
|
|
41,714 |
|
|
|
38,777 |
|
|
|
82,985 |
|
| Consolidated net income |
|
|
57,719 |
|
|
|
115,518 |
|
|
|
73,989 |
|
|
|
245,178 |
|
| Adjust for net income attributable to noncontrolling interest |
|
|
-- |
|
|
|
42 |
|
|
|
-- |
|
|
|
132 |
|
| Net income attributable to Juniper Networks |
|
$ |
57,719 |
|
|
$ |
115,560 |
|
|
$ |
73,989 |
|
|
$ |
245,310 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share attributable to Juniper Networks common stockholders: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
|
$ |
0.11 |
|
|
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.46 |
|
| |
Diluted |
|
$ |
0.11 |
|
|
$ |
0.21 |
|
|
$ |
0.14 |
|
|
$ |
0.45 |
|
| Shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic |
|
|
527,756 |
|
|
|
532,909 |
|
|
|
527,989 |
|
|
|
531,827 |
|
| |
Diluted |
|
|
531,755 |
|
|
|
546,452 |
|
|
|
533,753 |
|
|
|
547,729 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
| Preliminary Net Revenues by Reportable Segment |
| (in thousands) |
| (unaudited) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Platform Systems Division: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
PSD Products: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Routing |
|
$ |
487,358 |
|
$ |
580,558 |
|
$ |
944,937 |
|
$ |
1,163,375 |
| |
|
Switching |
|
|
139,894 |
|
|
117,144 |
|
|
263,417 |
|
|
217,765 |
| |
|
Security/Other |
|
|
41,811 |
| |
53,763 |
|
|
88,085 |
|
|
105,164 |
| |
|
|
Total PSD Products |
|
$ |
669,063 |
|
$ |
751,465 |
|
$ |
1,296,439 |
|
$ |
1,486,304 |
| |
PSD Services |
|
|
202,390 |
|
|
165,417 |
|
|
399,207 |
|
|
329,215 |
| |
|
Total Platforms Systems Division Revenue |
|
$ |
871,453 |
|
$ |
916,882 |
|
$ |
1,695,646 |
|
$ |
1,815,519 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Software Solutions Division: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
SSD Products: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Security/Other |
|
$ |
116,986 |
|
$ |
105,255 |
|
$ |
239,667 |
|
$ |
221,861 |
| |
|
Routing |
|
|
18,613 |
|
|
34,708 |
|
|
40,429 | |
|
60,703 |
| |
|
|
Total SSD Products |
|
$ |
135,599 |
|
$ |
139,963 |
|
$ |
280,096 |
|
$ |
282,564 |
| |
SSD Services |
|
|
66,707 |
|
|
63,699 |
|
|
130,515 |
|
|
124,073 |
| |
|
Total Software Solutions Division Revenue |
|
$ |
202,306 |
|
$ |
203,662 |
|
$ |
410,611 |
|
$ |
406,637 |
| Total Revenue |
|
$ |
1,073,759 |
|
$ |
1,120,544 |
|
$ |
2,106,257 |
|
$ |
2,222,156 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
| Preliminary Net Revenues by Product |
| (in thousands) |
| (unaudited) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Routing |
|
$ |
505,971 |
|
$ |
615,266 |
|
$ | 985,384 |
|
$ |
1,224,079 |
| Switching |
|
|
139,894 |
|
|
117,144 |
|
|
263,417 |
|
|
217,765 |
| Security/Other |
|
|
158,797 |
|
|
159,018 |
|
|
327,734 |
|
|
327,024 |
| Services |
|
|
269,097 |
|
|
229,116 |
|
|
529,722 |
|
|
453,288 |
| Total |
|
$ |
1,073,759 |
|
$ |
1,120,544 |
|
$ |
2,106,257 |
|
$ |
2,222,156 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
| Preliminary Net Revenues by Geographic Region |
| (in thousands) |
| (unaudited) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Americas |
|
$ |
587,307 |
|
$ |
578,704 |
|
$ |
1,118,654 | |
$ |
1,160,319 |
| Europe, Middle East, and Africa |
|
|
299,253 |
|
|
329,061 |
|
|
606,319 |
|
|
628,912 |
| Asia Pacific |
|
|
187,199 |
|
|
212,779 |
|
|
381,284 |
|
|
432,925 |
| Total |
|
$ |
1,073,759 |
|
$ |
1,120,544 |
|
$ |
2,106,257 |
|
$ |
2,222,156 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
| Preliminary Net Revenues by Market |
| (in thousands) |
| (unaudited) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Service Provider |
|
$ |
680,971 |
|
$ |
729,340 |
|
$ |
1,366,580 |
|
$ |
1,471,517 |
| Enterprise |
|
|
392,788 |
|
|
391,204 |
|
|
739,677 | |
|
750,639 |
| Total |
|
$ |
1,073,759 |
|
$ |
1,120,544 |
|
$ |
2,106,257 |
|
$ |
2,222,156 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
| Share-Based Compensation by Category |
| (in thousands) |
| (unaudited) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Cost of revenues - Product |
|
$ |
1,220 |
|
$ |
1,211 |
|
$ |
2,337 |
|
$ |
2,159 |
| Cost of revenues - Service |
|
|
4,125 |
|
|
4,486 |
|
|
9,345 |
|
|
8,405 |
| Research and development |
|
|
28,486 |
|
|
26,583 |
|
|
54,277 |
|
|
48,913 |
| Sales and marketing |
|
|
21,022 |
|
|
19,171 |
|
|
42,933 |
|
|
32,397 |
| General and administrative |
|
|
7,027 |
|
|
8,675 |
|
|
17,995 |
|
|
17,291 |
| Total |
|
$ |
61,880 |
|
$ |
60,126 |
|
$ |
126,887 |
|
$ |
109,165 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
| Share-Based Compensation Related Payroll Tax by Category |
| (in thousands) |
| (unaudited) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Cost of revenues - Product |
|
$ |
12 |
|
$ |
24 |
|
$ |
24 |
|
$ |
295 |
| Cost of revenues - Service |
|
|
53 |
|
|
94 |
|
|
87 |
|
|
929 |
| Research and development |
|
|
122 |
|
|
276 |
|
|
248 |
|
|
3,350 |
| Sales and marketing |
|
|
329 |
|
|
583 |
|
|
505 |
|
|
3,969 |
| General and administrative |
|
|
54 |
|
|
66 |
|
|
85 |
|
|
485 |
| Total |
|
$ |
570 | |
$ |
1,043 |
|
$ |
949 |
|
$ |
9,028 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
|
| Reconciliation between GAAP and non-GAAP Financial Measures |
|
| (in thousands, except percentages) |
|
| (unaudited) |
|
| |
|
| |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| GAAP Cost of revenues - Product |
|
|
|
$ |
292,589 |
|
|
$ |
292,391 |
|
|
$ |
573,218 |
|
|
$ |
558,137 |
|
| Share-based compensation expense |
|
C |
|
|
(1,220 |
) |
|
|
(1,211 |
) |
|
|
(2,337 |
) |
|
|
(2,159 |
) |
| Share-based compensation related payroll tax |
|
C |
|
|
(12 |
) |
|
|
(24 |
) |
|
|
(24 |
) |
|
|
(295 |
) |
| Amortization of purchased intangible assets |
|
A |
|
|
(7,531 |
) | |
|
(5,438 |
) |
|
|
(13,626 |
) |
|
|
(10,636 |
) |
| Acquisition-related charges |
|
A,B |
|
|
-- |
|
|
|
(1,527 |
) |
|
|
-- |
|
|
|
(2,487 |
) |
| Non-GAAP Cost of revenues - Product |
|
|
|
|
283,826 |
|
|
|
284,191 |
|
|
|
557,231 |
|
|
|
542,560 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Cost of revenues - Service |
|
|
|
|
113,297 |
|
|
|
105,987 |
|
|
|
231,111 |
|
|
|
205,968 |
|
| Share-based compensation expense |
|
C |
|
|
(4,125 |
) |
|
|
(4,486 |
) |
|
|
(9,345 |
) |
|
|
(8,405 |
) |
| Share-based compensation related payroll tax |
|
C |
|
|
(53 |
) |
|
|
(94 |
) |
| |
(87 |
) |
|
|
(929 |
) |
| Non-GAAP Cost of revenues - Service |
|
|
|
|
109,119 |
|
|
|
101,407 |
|
|
|
221,679 |
|
|
|
196,634 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Gross margin - Product |
|
|
|
|
512,073 |
|
|
|
599,037 |
|
|
|
1,003,317 |
|
|
|
1,210,731 |
|
| Share-based compensation expense |
|
C |
|
|
1,220 |
|
|
|
1,211 |
|
|
|
2,337 |
|
|
|
2,159 |
|
| Share-based compensation related payroll tax |
|
C |
|
|
12 |
|
|
|
24 |
|
|
|
24 |
|
|
|
295 |
|
| Amortization of purchased intangible assets |
|
A |
|
|
7,531 |
|
|
|
5,438 |
|
|
|
13,626 |
|
|
|
10,636 |
|
| Acquisition-related charges |
|
A,B |
|
|
-- |
|
|
|
1,527 |
|
|
|
-- |
|
|
|
2,487 |
|
| Non-GAAP Gross margin - Product |
|
|
|
|
520,836 |
|
|
|
607,237 |
|
|
|
1,019,304 |
|
|
|
1,226,308 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Product gross margin as a % of product revenue |
|
|
|
|
63.6 |
% |
|
|
67.2 |
% |
|
|
63.6 |
% |
|
|
68.4 |
% |
| Share-based compensation expense as a % of product revenue |
|
C |
|
|
0.2 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.1 |
% |
| Share-based compensation related payroll tax as a % of product revenue |
|
C |
|
|
-- |
% |
|
|
-- |
% |
|
|
-- |
% |
|
|
-- |
% |
| Amortization of purchased intangible assets as a % of product revenue |
|
A |
|
|
0.9 | % |
|
|
0.6 |
% |
|
|
0.9 |
% |
|
|
0.6 |
% |
| Acquisition-related charges as a % of product revenue |
|
A,B |
|
|
-- |
% |
|
|
0.2 |
% |
|
|
-- |
% |
|
|
0.2 |
% |
| Non-GAAP Product gross margin as a % of product revenue |
|
|
|
|
64.7 |
% |
|
|
68.1 |
% |
|
|
64.7 |
% |
|
|
69.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Gross margin - Service |
|
|
|
|
155,800 |
|
|
|
123,129 |
|
|
|
298,611 |
|
|
|
247,320 |
|
| Share-based compensation expense |
|
C |
|
|
4,125 |
|
|
|
4,486 |
|
|
|
9,345 |
|
|
|
8,405 |
|
| Share-based compensation related payroll tax |
|
C |
|
|
53 |
|
|
|
94 |
| |
|
87 |
|
|
|
929 |
|
| Non-GAAP Gross margin - Service |
|
|
|
$ |
159,978 |
|
|
$ |
127,709 |
|
|
$ |
308,043 |
|
|
$ |
256,654 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Service gross margin as a % of service revenue |
|
|
|
|
57.9 |
% |
|
|
53.7 |
% |
|
|
56.4 |
% |
|
|
54.6 |
% |
| Share-based compensation expense as a % of service revenue |
|
C |
|
|
1.5 |
% |
|
|
2.0 |
% |
|
|
1.8 |
% |
|
|
1.9 |
% |
| Share-based compensation related payroll tax as a % of service revenue |
|
C |
|
|
-- |
% |
|
|
-- |
% |
|
|
-- |
% |
|
|
0.1 |
% |
| Non-GAAP Service gross margin as a % of service revenue |
|
|
|
|
59.4 |
% |
|
|
55.7 |
% |
|
|
58.2 | % |
|
|
56.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
|
| Reconciliation between GAAP and non-GAAP Financial Measures |
|
| (in thousands, except percentages) |
|
| (unaudited) |
|
| |
|
| |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| GAAP Gross margin |
|
|
|
$ |
667,873 |
|
|
$ |
722,166 |
|
|
$ |
1,301,928 |
|
|
$ |
1,458,051 |
|
| Share-based compensation expense |
|
C |
|
|
5,345 |
|
|
|
5,697 |
|
|
|
11,682 |
|
|
|
10,564 |
|
| Share-based compensation related payroll tax |
|
C |
|
|
65 |
|
|
|
118 |
|
|
|
111 |
|
|
|
1,224 |
|
| Amortization of purchased intangible assets |
|
A |
|
|
7,531 |
|
|
|
5,438 |
|
|
|
13,626 |
|
|
|
10,636 |
|
| Acquisition-related charges |
|
A,B |
|
|
-- |
|
|
|
1,527 |
|
|
|
-- |
|
|
|
2,487 |
|
| Non-GAAP Gross margin |
|
|
|
|
680,814 |
|
|
|
734,946 |
|
|
|
1,327,347 |
|
|
|
1,482,962 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Gross margin as a % of revenue |
|
|
|
|
62.2 |
% |
|
|
64.4 |
% |
|
|
61.8 |
% |
|
|
65.6 |
% |
| Share-based compensation expense as a % of revenue |
|
C |
|
|
0.5 |
% |
|
|
0.5 |
% |
|
|
0.6 |
% |
|
|
0.5 |
% |
| Share-based compensation related payroll tax as a % of revenue |
|
C |
|
|
-- | % |
|
|
-- |
% |
|
|
-- |
% |
|
|
-- |
% |
| Amortization of purchased intangible assets as a % of revenue |
|
A |
|
|
0.7 |
% |
|
|
0.6 |
% |
|
|
0.6 |
% |
|
|
0.5 |
% |
| Acquisition-related charges as a % of revenue |
|
A,B |
|
|
-- |
% |
|
|
0.1 |
% |
|
|
-- |
% |
|
|
0.1 |
% |
| Non-GAAP Gross margin as a % of revenue |
|
|
|
|
63.4 |
% |
|
|
65.6 |
% |
|
|
63.0 |
% |
|
|
66.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Research and development expense |
|
|
|
|
268,734 |
|
|
|
257,250 |
|
|
|
538,336 |
|
|
|
519,229 |
|
| Share-based compensation expense |
|
C |
|
|
(28,486 |
) |
|
|
(26,583 |
) |
|
| (54,277 |
) |
|
|
(48,913 |
) |
| Share-based compensation related payroll tax |
|
C |
|
|
(122 |
) |
|
|
(276 |
) |
|
|
(248 |
) |
|
|
(3,350 |
) |
| Non-GAAP Research and development expense |
|
|
|
|
240,126 |
|
|
|
230,391 |
|
|
|
483,811 |
|
|
|
466,966 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Sales and marketing expense |
|
|
|
|
259,455 |
|
|
|
246,635 |
|
|
|
517,174 |
|
|
|
492,926 |
|
| Share-based compensation expense |
|
C |
|
|
(21,022 |
) |
|
|
(19,171 |
) |
|
|
(42,933 |
) |
|
|
(32,397 |
) |
| Share-based compensation related payroll tax |
|
C |
|
|
(329 |
) |
|
|
(583 |
) |
|
|
(505 |
) |
|
| (3,969 |
) |
| Non-GAAP Sales and marketing expense |
|
|
|
|
238,104 |
|
|
|
226,881 |
|
|
|
473,736 |
|
|
|
456,560 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP General and administrative expense |
|
|
|
|
48,775 |
|
|
|
44,260 |
|
|
|
103,441 |
|
|
|
89,184 |
|
| Share-based compensation expense |
|
C |
|
|
(7,027 |
) |
|
|
(8,675 |
) |
|
|
(17,995 |
) |
|
|
(17,291 |
) |
| Share-based compensation related payroll tax |
|
C |
|
|
(54 |
) |
|
|
(66 |
) |
|
|
(85 |
) |
|
|
(485 |
) |
| Non-GAAP General and administrative expense |
|
|
|
|
41,694 |
|
|
|
35,519 |
|
|
|
85,361 |
|
|
|
71,408 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Operating expense |
|
|
|
|
581,155 |
|
|
|
551,246 |
|
|
|
1,167,501 |
|
|
|
1,109,738 |
|
| Share-based compensation expense |
|
C |
|
|
(56,535 |
) |
|
|
(54,429 |
) |
|
|
(115,205 |
) |
|
|
(98,601 |
) |
| Share-based compensation related payroll tax |
|
C |
|
|
(505 |
) |
|
|
(925 |
) |
|
|
(838 |
) |
|
|
(7,804 |
) |
| Amortization of purchased intangible assets |
|
A |
|
|
(1,236 |
) |
|
|
(1,332 |
) |
|
|
(2,414 |
) |
|
|
(2,876 |
) |
| Restructuring charges |
|
B |
|
|
(3,161 |
) |
|
|
916 |
|
|
|
(5,200 |
) |
|
|
1,263 |
|
| Acquisition-related charges |
|
A,B |
|
|
206 |
|
|
|
(2,685 |
) |
|
| (936 |
) |
|
|
(6,786 |
) |
| Non-GAAP Operating expense |
|
|
|
$ |
519,924 |
|
|
$ |
492,791 |
|
|
$ |
1,042,908 |
|
|
$ |
994,934 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Juniper Networks, Inc. |
|
| Reconciliation between GAAP and non-GAAP Financial Measures |
|
| (in thousands, except percentages) |
|
| (unaudited) |
|
| |
|
| |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| GAAP Operating income |
|
|
|
$ |
86,718 |
|
|
$ |
170,920 |
|
|
$ |
134,427 |
|
|
$ |
348,313 |
|
| Share-based compensation expense |
|
C |
|
|
61,880 |
|
|
|
60,126 |
|
|
|
126,887 | |
|
|
109,165 |
|
| Share-based compensation related payroll tax |
|
C |
|
|
570 |
|
|
|
1,043 |
|
|
|
949 |
|
|
|
9,028 |
|
| Amortization of purchased intangible assets |
|
A |
|
|
8,767 |
|
|
|
6,770 |
|
|
|
16,040 |
|
|
|
13,512 |
|
| Restructuring charges |
|
B |
|
|
3,161 |
|
|
|
(916 |
) |
|
|
5,200 |
|
|
|
(1,263 |
) |
| Acquisition-related charges |
|
A,B |
|
|
(206 |
) |
|
|
4,212 |
|
|
|
936 |
|
|
|
9,273 |
|
| Non-GAAP Operating income |
|
|
|
|
160,890 |
|
|
|
242,155 |
|
|
|
284,439 |
|
|
|
488,028 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Operating margin | |
|
|
|
8.1 |
% |
|
|
15.3 |
% |
|
|
6.4 |
% |
|
|
15.7 |
% |
| Share-based compensation expense as a % of revenue |
|
C |
|
|
5.8 |
% |
|
|
5.4 |
% |
|
|
6.0 |
% |
|
|
4.9 |
% |
| Share-based compensation related payroll tax as a % of revenue |
|
C |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.4 |
% |
| Amortization of purchased intangible assets as a % of revenue |
|
A |
|
|
0.7 |
% |
|
|
0.5 |
% |
|
|
0.8 |
% |
|
|
0.7 |
% |
| Restructuring charges as a % of revenue |
|
B |
|
|
0.3 |
% |
|
|
(0.1) |
% |
|
|
0.2 |
% |
|
|
(0.1) |
% |
| Acquisition-related charges as a % of revenue |
|
A,B |
|
|
-- |
% |
|
|
0.4 |
% |
|
|
-- |
% |
|
|
0.4 |
% |
| Non-GAAP Operating margin |
|
|
|
|
15.0 |
% |
|
|
21.6 |
% | |
|
13.5 |
% |
|
|
22.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Other (expense) income, net |
|
E |
|
|
2,770 |
|
|
|
(13,688 |
) |
|
|
(21,661 |
) |
|
|
(20,150 |
) |
| Gain on equity investments |
|
B |
|
|
(14,787 |
) |
|
|
(72 |
) |
|
|
(787 |
) |
|
|
(134 |
) |
| Non-GAAP Other expense, net |
|
E |
|
|
(12,017 |
) |
|
|
(13,760 |
) |
|
|
(22,448 |
) |
|
|
(20,284 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Income tax provision |
|
|
|
|
31,769 |
|
|
|
41,714 |
|
|
|
38,777 |
|
|
| 82,985 |
|
| Income tax effect of non-GAAP exclusions |
|
B |
|
|