In a World of Paradigm Shifts, This is a Big One

Blog Post

April 25, 2016

Juniper Networks Contrail Enhances Capabilities to Cater to a Wide Range of Cloud Customer Use Cases

Blog Post

April 25, 2016

Juniper Sky Advanced Threat Prevention vs. Locky Malware

Blog Post

April 14, 2016

Juniper Networks Reports Preliminary Third Quarter 2012 Financial Results

SUNNYVALE, CA--(Marketwire - Oct 23, 2012) - Juniper Networks (NYSE: JNPR)

  • Revenue: $1,118 million, up 4% from Q2'12 and up 1% from Q3'11
  • Operating Margin: 3.8% GAAP; 16.9% non-GAAP
  • GAAP Net Income Per Share: $0.03 diluted, includes $0.16 impact from restructuring and other charges
  • Non-GAAP Net Income Per Share: $0.22 diluted, up 16% from Q2'12 and down 21% from Q3'11

Juniper Networks (NYSE: JNPR), the industry leader in network innovation, today reported preliminary financial results for the three and nine months ended September 30, 2012, and provided its outlook for the three months ending December 31, 2012.

Net revenues for the third quarter of 2012 increased 4% sequentially, and increased 1% on a year-over-year basis, to $1,118 million.

The Company posted GAAP net income of $17 million, or $0.03 per diluted share for the third quarter. The GAAP diluted income per share includes $0.16 impact from restructuring and other charges. Non-GAAP net income was $118 million, or $0.22 per diluted share, for the third quarter of 2012.

Non-GAAP net income per diluted share increased 16% compared to the second quarter of 2012 and decreased 21% compared to the third 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 operating margin for the third quarter of 2012 decreased to 3.8% on a GAAP basis from 8.1% in the second quarter of 2012, and from 12.4% in the third quarter 2011. Non-GAAP operating margin for the third quarter of 2012 increased to 16.9% from 15.0% in the second quarter of 2012 and decreased from 20.0% in the third quarter of 2011.

"Juniper delivered top line revenue growth in the third quarter as we focus on excellence in execution throughout our business," said Kevin Johnson, chief executive officer of Juniper Networks. "Our new products continue to gain traction in the marketplace, and we're aligning our organization to sharpen our focus, enable agility and drive efficiency as we position for 2013."

"Our third quarter results demonstrated a return to year-over-year revenue growth and improved operational performance," said Robyn Denholm, chief financial officer of Juniper Networks. "Long-term demand fundamentals for high-performance networking continue to be positive, yet customers remain cautious in the near-term environment. We remain focused on executing our strategy to drive revenue growth, and with our workforce restructuring largely complete, we're well prepared to capture the market opportunity ahead."

Other Financial Highlights
Total cash, cash equivalents and investments as of September 30, 2012 were $4,048 million, compared to $4,272 million as of the second quarter of 2012 and $4,130 million as of the third quarter of 2011.

Juniper generated net cash from operations for the third quarter of 2012 of $173 million, compared to net cash provided by operations of $212 million in the second quarter of 2012, and $185 million in the third quarter of 2011.

Days sales outstanding in accounts receivable ("DSO") was 32 days in the third quarter of 2012, compared to 34 days in the prior quarter and 36 days in the third quarter of 2011.

Juniper repurchased approximately 14 million shares in the third quarter of 2012, at an average price of $18.00 per share, or approximately $250 million.

Capital expenditures, as well as depreciation and amortization of intangible assets expense during the third quarter of 2012 were $87 million and $48 million, respectively.

Outlook
Long-term fundamentals driving demand for networking solutions are positive, and we are making good progress toward our revenue targets for our new products. Our outlook for the December quarter reflects our customers' continued caution in their investment decisions in what continues to be a challenging environment. 

  • Juniper estimates revenue for the fourth quarter ending December 31, 2012 to be in the range of $1,100 million to $1,130 million. 

  • Juniper estimates that its non-GAAP gross margin will be in the range of 63.5% to 64.5% for the fourth quarter.

  • Juniper estimates that its non-GAAP operating expenses will be flat compared to the September quarter.

  • Juniper expects its non-GAAP operating margin for the fourth quarter will be in the range of 14% to 16%.

  • Juniper estimates that its non-GAAP net income per share will range between $0.19 and $0.22 on a diluted basis, assuming a flat share count and estimated non-GAAP tax rate of 32%.

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 webcast today, October 23, 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 September 30,     Nine Months Ended September 30,  
    2012     2011     2012     2011  
Net revenues:                                
  Product   $ 838,179     $ 861,935     $ 2,414,714     $ 2,630,803  
  Service     280,132       243,861       809,854       697,149  
    Total net revenues     1,118,311       1,105,796       3,224,568       3,327,952  
Cost of revenues:                                
  Product     334,645       286,609       907,863       844,746  
  Service     109,835       107,583       340,946       313,551  
    Total cost of revenues     444,480       394,192       1,248,809       1,158,297  
Gross margin     673,831       711,604       1,975,759       2,169,655  
Operating expenses:                                
  Research and development     288,178       257,096       826,514       776,325  
  Sales and marketing     261,026       254,933       778,200       747,859  
  General and administrative     49,442       44,455       152,883       133,639  
  Amortization of purchased intangible assets     1,148       1,263       3,562       4,139  
  Restructuring and other charges     31,018       16,813       36,218       15,550  
  Acquisition-related and other charges     250       18       1,186       6,804  
    Total operating expenses     631,062       574,578       1,798,563       1,684,316  
Operating income     42,769       137,026       177,196       485,339  
Other expense, net     (3,956 )     (15,957 )     (25,617 )     (36,107 )
Income before income taxes and noncontrolling interest     38,813       121,069       151,579       449,232  
Income tax provision     21,999       37,398       60,776       120,383  
Consolidated net income     16,814       83,671       90,803       328,849  
Adjust for net loss attributable to noncontrolling interest     --       (8 )     --       124  
Net income attributable to Juniper Networks   $ 16,814     $ 83,663     $ 90,803     $ 328,973  
                                 
Net income per share attributable to Juniper Networks common stockholders:                                
  Basic   $ 0.03     $ 0.16     $ 0.17     $ 0.62  
  Diluted   $ 0.03     $ 0.16     $ 0.17     $ 0.60  
Shares used in computing net income per share:                                
  Basic     521,178       529,286       525,419       530,994  
  Diluted     524,537       536,583       530,343       544,086  
 
 
Juniper Networks, Inc.
Preliminary Net Revenues by Reportable Segment
(in thousands)
(unaudited)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2012   2011   2012   2011
Platform Systems Division:                        
  PSD Products:                        
    Routing   $ 488,112   $ 524,211   $ 1,433,049   $ 1,687,587
    Switching     145,616     122,172     409,033     339,937
    Security/Other     47,822     53,393     135,907     158,557
      Total PSD Products   $ 681,550   $ 699,776   $ 1,977,989   $ 2,186,081
  PSD Services     211,400     180,018     610,608     509,233
    Total Platform Systems Division Revenue   $ 892,950   $ 879,794   $ 2,588,597   $ 2,695,314
                         
Software Solutions Division:                        
  SSD Products                        
    Security/Other   $ 129,848   $ 137,933   $ 369,515   $ 359,793
    Routing     26,781     24,226     67,210     84,929
      Total SSD Products   $ 156,629   $ 162,159   $ 436,725   $ 444,722
  SSD Services     68,732     63,843     199,246     187,916
    Total Software Solutions Division Revenue   $ 225,361   $ 226,002   $ 635,971   $ 632,638
Total   $ 1,118,311   $ 1,105,796   $ 3,224,568   $ 3,327,952
 
 
Juniper Networks, Inc.
Preliminary Net Revenues by Product
(in thousands)
(unaudited)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2012   2011   2012   2011
Routing   $ 514,893   $ 548,437   $ 1,500,259   $ 1,772,516
Switching     145,616     122,172     409,033     339,937
Security/Other     177,670     191,326     505,422     518,350
Services     280,132     243,861     809,854     697,149
Total   $ 1,118,311   $ 1,105,796   $ 3,224,568   $ 3,327,952
 
 
Juniper Networks, Inc.
Preliminary Net Revenues by Geographic Region
(in thousands)
(unaudited)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2012   2011   2012   2011
Americas   $ 560,258   $ 556,573   $ 1,678,912   $ 1,716,892
Europe, Middle East, and Africa     321,331     311,255     927,650     940,167
Asia Pacific     236,722     237,968     618,006     670,893
Total   $ 1,118,311   $ 1,105,796   $ 3,224,568   $ 3,327,952
 
 
Juniper Networks, Inc.
Preliminary Net Revenues by Market
(in thousands)
(unaudited)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2012   2011   2012   2011
Service Provider   $ 705,257   $ 685,013   $ 2,071,837   $ 2,156,530
Enterprise     413,054     420,783     1,152,731     1,171,422
Total   $ 1,118,311   $ 1,105,796   $ 3,224,568   $ 3,327,952
   
   
Juniper Networks, Inc.  
Segment Operating Results  
(in thousands)  
(unaudited)  
   
      Three Months Ended September 30,     Nine Months Ended September 30,  
      2012     2011     2012     2011  
Platform Systems Division:                                  
  Product revenue     $ 681,550     $ 699,776     $ 1,977,989     $ 2,186,081  
  Service revenue       211,400       180,018       610,608       509,233  
    Total PSD revenue       892,950       879,794       2,588,597       2,695,314  
    Non-GAAP PSD contribution margin $       356,144       381,802       1,011,877       1,214,346  
    Non-GAAP PSD contribution margin %       39.9 %     43.4 %     39.1 %     45.1 %
                                   
Software Solutions Division:                                  
  Product revenue       156,629       162,159       436,725       444,722  
                                     
  Services revenue       68,732       63,843       199,246       187,916  
    Total SSD revenue       225,361       226,002       635,971       632,638  
                                       
    Non-GAAP SSD contribution margin $       99,776       94,549       256,165       250,339  
    Non-GAAP SSD contribution margin %       44.3 %     41.8 %     40.3 %     39.6 %
Total revenue       1,118,311       1,105,796       3,224,568       3,327,952  
                                   
Non-GAAP Segment contribution margin $       455,920       476,351       1,268,042       1,464,685  
Non-GAAP Segment contribution margin %       40.8 %     43.1 %     39.3 %     44.0 %
                                   
Corporate unallocated expenses       266,505       255,190       794,188       755,496  
                                   
Non-GAAP Total segment operating margin $       189,415       221,161       473,854       709,189  
Non-GAAP Total segment operating margin %       16.9