Juniper Networks reports first Quarter 2008 Financial Results
- Net Income: $110.4 million (GAAP); $149.5 million (non-GAAP)
- EPS: $0.20 (diluted, GAAP); $0.27 (diluted, non-GAAP), up 44% from Q1'07 on improved operating performance
Juniper Networks, Inc. (NASDAQ: JNPR) today reported financial results for the three months ended March 31, 2008 that included strong revenue and profit growth and improved operating profit margins.
Net revenues for the first quarter of 2008 rose 31 percent on a year-over-year basis to $822.9 million. The Company posted GAAP net income of $110.4 million or $0.20 per diluted share, and non-GAAP net income of $149.5 million or $0.27 per diluted share. The non-GAAP EPS figure represents an increase of 44% from the $0.19 per diluted share reported for the first quarter of 2007. 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.
"The strength of our first quarter results continue to underscore the value of Juniper's commitment to high-performance networking," said Scott Kriens, chairman and chief executive officer, Juniper Networks, Inc. "Across our markets and around the world, we are seeing clear opportunity to extend our lead through an optimal combination of Juniper size, speed, focus and execution, which translates directly into strategic advantage for our customers."
Juniper's operating margin rose to 17.3% on a GAAP basis from 9.6% in the same quarter a year-ago. Non-GAAP operating margin rose to 23.5% from 19.6% in the first quarter of 2007. The improvement reflected strength in gross profit margins owing to a favorable mix of infrastructure products, particularly in the Company's T and M series products, as well as reduced operating expense as a percentage of net revenues due to the Company's efforts to manage expenses and improve efficiency.
The improved operating margins helped Juniper generate net cash from operations for the first quarter of 2008 of $254.9 million, compared to cash provided by operations of $151.5 million for the same quarter of 2007.
Capital expenditures as well as depreciation and amortization expense during the first quarter of 2008 were $33.4 million and $55.4 million, respectively.
"I'm pleased with this strong start to 2008," stated Robyn Denholm, chief financial officer, Juniper Networks, Inc. "Our March quarter results reflect our focus on building operating leverage into our business model. Our operational excellence programs (4 P's) to optimize our business are well underway and we will continue implementing our plans in the coming quarters."
High-Performance Network Infrastructure
Juniper reaffirmed its commitment to delivering innovative, high-performance network infrastructure solutions to the enterprise market with the introduction and first shipments of the EX-series, a family of Ethernet switches. Leveraging the operational simplicity and carrier-class reliability of JUNOS software, the EX-series alleviates the cost, complexity and risk associated with managing legacy switch infrastructures, and accelerates the deployment of business-enabling applications and services across the network. Juniper also announced the integration of services, including firewall, VPN and chassis clustering into JUNOS software for implementation on the J-series services router to enhance the security and reduce the complexity of small office and branch networks. Following the end of Q1'08, Juniper extended its security offerings with the introduction of a series of next-generation SSL VPN appliances designed to ensure fast, reliable and secure remote access to applications and services for the most complex and demanding secure environments; new Intrusion Detection and Prevention (IDP) appliances that scale up to 10 Gbps, which represents the industry's highest real-world throughput, performance and density combination; and in the first quarter Juniper also introduced the Security Threat Response Manager (STRM), capable of providing businesses with a centralized scalable and effective way to log and manage a rapidly evolving threat landscape, while sustaining adherence to compliance mandates.
For the service provider market, Juniper introduced an advanced mobile IP/MPLS solution portfolio with the new BX 7000 multi-access gateway router for the cell site, a new M-series circuit emulation and physical interface cards for the aggregation site and a suite of software features designed to simplify deployment, provisioning and management of mobile backhaul networks. This advanced solution will enable mobile operators to preserve their current investments and services, while accelerating the roll-out of new user-centric services. Juniper also introduced the JCS 1200, the industry's first high-performance control plane scaling platform. The independent scale of control and forwarding plane resources will help carriers to maximize service growth, operational efficiencies and control. When deployed in conjunction with the T1600 router, the JCS 1200 can create hardware-virtualized routers, delivering as much as three times the forwarding capacity of competitive systems, while using 25 percent less rack space. This unique architecture enables service providers to rapidly expand their service offerings and helps to reduce capital and operating expenditures.
Fueling High-Performance Businesses
In the service provider market, Juniper completed its first full quarter of shipping the T1600 multi-terabit core router, and exiting the quarter had booked orders for more than 105 units and shipped more than 77 units to customers for deployment in production networks around the world. T-series customer deployments in the quarter included Tiscali International Network, the wholesale carrier division of the Tiscali Group, and HiNet, a wholly owned subsidiary of Chunghwa Telecom in Taiwan. Global adoption of the MX-series, Juniper's carrier Ethernet services router family, continued through the quarter with deployment announcements from PeterStar, a leading Russian telecommunications provider, SpectrumNet, a leading Bulgarian telecommunications provider, nLayer, a leading North American provider of Internet connectivity and wholesale bandwidth and Carphone Warehouse, one of the largest independent service providers in the U.K.
In the enterprise market, Juniper continues to build momentum and deliver the networking solutions high-performance businesses need to reduce operational complexity and costs, accelerate the roll-out of business critical applications and services, and differentiate themselves in the market. Secure access to applications continues to be a focus, with customers, including Bankdata, a leading financial services provider in Denmark, which is deploying Juniper SSL VPN solutions to grant secure access to network resources. In the public sector, Juniper participated in the National "Cyber Storm II" exercise sponsored by the U.S. Department of Homeland Security, which aimed to examine the processes, procedures, tools and organizational responses required to successfully defend against a multi-sector coordinated attack on the global cyber infrastructure, or respond to a natural disaster.
Juniper Networks will host a conference call web cast today, April 24, 2008 at 1:45 p.m.(Pacific Time), to be broadcasted live over the Internet at: http://www.juniper.net/....
To participate via telephone, the dial-in number is 212-231-2939. 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 June 13, 2008.
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.
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