Friday, October 24, 2014

Juniper Disappointed in Q3 Results

Juniper Networks' net revenues for the third quarter of 2014 decreased 5% year-over-year and decreased 8% sequentially to $1,126 million.

Juniper's operating margin for the third quarter of 2014 increased to 15.3% on a GAAP basis, including a $15 million benefit from restructuring and other charges, from 9.4% in the second quarter of 2014, and increased from 12.2% in the third quarter of 2013. Juniper posted GAAP net income of $103.6 million, or $0.23 per diluted share for the third quarter of 2014.

"We are disappointed in our third quarter revenue results, which reflect a lower-than-anticipated demand from service providers, particularly in the U.S.," said Shaygan Kheradpir, chief executive officer of Juniper Networks. "However, the underlying long-term demand trends in networking remain intact. While we navigate these dynamics, we are relentlessly focused on managing operating expenses while providing the innovation that matters most to our customers. We continue to have confidence in our business and see substantial opportunities to drive profitable growth and increase the value of our shareholders' investment over the long-term."

"Despite a weaker spending environment impacting third quarter revenue growth, we have been able to manage costs effectively to deliver good margins," said Robyn Denholm, chief financial and operations officer of Juniper Networks. "We enhanced efficiencies across the Company and exceeded our targeted cost reductions ahead of schedule. We have also continued our aggressive capital return plan to return immediate value to our shareholders while investing for the future growth of our business."