Juniper revenue misses in Q3

Juniper posted third quarter results light on revenue but with earnings in line with Wall Street estimates.

Juniper posted third quarter results light on revenue but with earnings in line with Wall Street estimates.

For the period ended Sept. 30, Juniper posted revenue of $1.01 billion, a rise of 23 per cent annually and three per cent from the second quarter. Analysts – and Juniper -- were expecting $1.02 billion in sales for the quarter.

Gartner: Enterprise IT spending to hit $2.5 trillion next year

Earnings came in at $171.5 million, right where analysts and Juniper expected. That equates to 32 cents per diluted share on a non-GAAP (excluding expenses, charges and other items) basis.

Last quarter, Juniper guided to revenue of $1.02 billion, or 4.25 per cent better than Q2. Juniper missed. Earnings met the high end of that guidance on a per share, non-GAAP basis.

"We anticipate customer demand to remain healthy and are well-positioned to drive further gains," said Kevin Johnson, Juniper's CEO, in a statement.

Johnson acknowledged that revenue could have been better in the quarter given demand, especially for Juniper’s MX 3D edge router. Johnson said Juniper had trouble meeting demand for the MX 3D in the quarter, and that Q3 is when orders usually come in late in the quarter.

Nonetheless, Juniper saw strong demand for its MX routers, EX Ethernet switches and SRX VPN/firewalls. Combined, these products generated $357 million for Juniper in the quarter, almost double what they generated a year ago.

Sales to enterprises were up 26 per cent in the quarter. Sales of Service Layer Technology products, which include the SRX firewall/VPN security products, were up 17 per cent.

Enterprise sales account for 37 per cent of Juniper’s total revenue. Project Stratus, Juniper’s data center/cloud computing fabric initiative, will go into testing and early customer adoption during the current quarter. Juniper plans to announce soon some anti-virus, spyware and malware security products that combine its Junos Pulse client software with the sMobile mobile device security technology it acquired in July, along with the SRX VPN/firewall gateway, Johnson said.

Service provider sales were up 21 per cent. Sales of infrastructure products – predominantly routers to service providers – were up 25 per cent in the quarter. Project Falcon, Juniper’s development of an evolved packet core for the mobile Internet, will be in trials by the end of this year. The underpinning of Falcon is the Junos-enabled MX 3D router.

Johnson noted that Q3 was “another quarter of 20 per cent growth,” which is meeting Juniper’s long-term targets. He says the company sees a strong Q4 as major service providers in the US spend the remainder of their capital budgets.

With that, Juniper expects Q4 revenue to come in at $1.12 billion, give or take $20 million. The company expects non-GAAP earnings per share to be 35 cents to 37 cents per share.

With respect to the global economy, Johnson said Juniper expects a slow recovery from the recession, with the pace and trajectory dependent on geography.

Read more about lan and wan in Network World's LAN & WAN section.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computingmobileinternetGartnerbusiness issuestelecommunicationrouterfinancial resultsjuniperhardware systemscorporate issuesservice providersConfiguration / maintenanceLAN & WAN

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?