Juniper Networks Reports Preliminary Second Quarter 2009 Financial Results
- Q2 Revenue: $786.4 million, up 3% quarter over quarter
- Q2 Operating Margin: 12.2% GAAP; 18.1% non-GAAP
- Q2 GAAP Net Income Per Share: $0.03 diluted (reflects a non-recurring income tax charge of $52.1 million, or $0.10 per diluted share)
- Q2 Non-GAAP Net Income Per Share: $0.19 diluted, up 12% quarter over quarter
Juniper Networks, Inc. (NASDAQ: JNPR) today reported preliminary financial results for the three months ended June 30, 2009.
Net revenues for the second quarter of 2009 increased 3% to $786.4 million from $764.2 million reported in the first quarter of 2009 and declined 11% on a year-over-year basis. The Company posted GAAP net income of $14.8 million, or $0.03 per diluted share, and non-GAAP net income of $103.8 million, or $0.19 per diluted share. GAAP net income includes a non-recurring income tax charge of $52.1 million, or $0.10 per diluted share, related to a change in the tax treatment of stock-based compensation in research and development cost sharing arrangements for certain U.S. multinational companies due to a federal appellate court ruling in the second quarter of 2009. Non-GAAP net income per share represents an increase of 12% quarter-over-quarter from the $0.17 per diluted share reported for the first quarter of 2009 and a decrease of 32% from the $0.28 per diluted share reported for the second quarter of 2008. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Revenues by Reportable Segment table below.
"We continue to take a disciplined approach to controlling operating expenses as we navigate this challenging economic period," said Kevin Johnson, Juniper's chief executive officer. "With service provider sales relatively flat quarter-over-quarter, our sequential revenue increase was supported by double digit quarter-over-quarter growth in the enterprise market. A solid product portfolio, compelling value proposition, and improved sales and marketing execution are enabling us to expand and diversify our customer base."
Juniper's operating margin for the second quarter of 2009 increased to 12.2% on a GAAP basis from 10.6% in the first quarter of 2009, and decreased from 18.3% in the prior year second quarter. Non-GAAP operating margin for the second quarter of 2009 increased to 18.1% from 16.4% in the first quarter of 2009 and decreased from 23.6% in the prior year second quarter.
Juniper generated net cash from operations for the second quarter of 2009 of $148.7 million, compared to net cash provided by operations of $163.9 million in the first quarter.
Capital expenditures as well as depreciation and amortization expense during the second quarter of 2009 were $45.2 million and $37.8 million, respectively.
"Juniper continues to execute well and deliver on its commitments to improving our overall cost structure and driving operational excellence, and this translated to higher earnings and good free cash flows in the second quarter," said Robyn Denholm, Juniper's chief financial officer. "As we move forward, we will maintain our focus on balancing our long term investments in our product roadmap as well as operating as leanly and efficiently as we can as a company."
Juniper Networks will host a conference call web cast today, July 23, 2009 at 1:45 p.m. (Pacific Time), to be broadcasted live over the Internet at: http://www.juniper.net/....
To participate via telephone, in the U.S. the toll free dial-in number is 877-407-8033; outside of the U.S. dial 201-689-8033. Please call ten minutes prior to the scheduled conference call time. The webcast replay of the conference call will be archived on the Juniper Networks website until September 14, 2009.
Juniper Networks GmbH
Juniper Networks, Inc. is the leader in high-performance networking. Juniper offers a high-performance network infrastructure that creates a responsive and trusted environment for accelerating the deployment of services and applications over a single network. This fuels high-performance businesses. Additional information can be found at www.juniper.net.