Juniper Networks, Inc. Reports Q1'00 Financial Results Net Revenue $63.9M; Pro forma EPS $0.066

Juniper Networks, Inc. Reports Q1'00 Financial Results Net Revenue $63.9M; Pro forma EPS $0.066

Mountain View, CA - April 13, 2000 - Juniper Networks, Inc. (Nasdaq:JNPR), a leading provider of next-generation IP infrastructure systems, today reported its first quarter results for the period ending March 31, 2000.

Net revenues for the first quarter were $63.9 million, compared with $45.4 million for the fourth quarter, an increase of 41%. Pro forma net income, which excludes the amortization of goodwill of $1.9 million and the deferred compensation charge of $0.5 million, was $10.5 million or $0.06 per share, compared with a pro forma net income of $4.8 million or $0.03 per share in the fourth quarter of 1999.

Actual net income for the first quarter, including the above-mentioned amortization of goodwill and deferred compensation charge, was $8.1 million or $0.05 per share, compared with an income of $3.1 million or $0.02 per share in the fourth quarter of 1999.

In addition, the Board of Directors authorized a two-for-one stock split. Shares resulting from the split are expected to be distributed by the transfer agent on June 15, 2000.

"We continue to see growth in the IP infrastructure market," said Scott Kriens, Chairman and CEO of Juniper Networks. "During the quarter we diversified our customer base, broadened our geographic coverage and expanded the product portfolio. As these results demonstrate, we remain focused on the consistent execution necessary to build a long-term franchise," Kriens said.

About Juniper Networks, Inc.

Juniper Networks, Inc. is a leading provider of purpose-built systems that meet the scalability, performance, density, and compatibility requirements of rapidly evolving, optically enabled IP networks. The company's purpose-built systems provide new IP infrastructure solutions for the world's leading service providers. Juniper Networks service, manufacturing teams, and IP engineers work closely with customers to build and support customer networks. The company is headquartered in Mountain View, California.

Juniper Networks is a registered trademark of Juniper Networks, Inc. JUNOS, M20, M40, and M160 are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks may be the property of their respective owners.

Actual results could differ materially from those anticipated in forward-looking statements in this release as a result of certain factors, including those set forth in the risk factors described in the Company's SEC filings, including its recent Form 10K.

 

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
		March 31, 2000		December 31, 1999
Assets		(unaudited)		(1)
Current assets:
Cash and cash equivalents		$ 1,068,529		$ 158,043
Short-term investments		281,475		187,915
Accounts receivable, net		29,964		23,950
Prepaid expenses and other current assets		11,844		7,925
Total current assets		1,391,812		377,833
Property and equipment, net		16,694		12,416
Long-term investments		214,545		97,201
Other long-term assets		71,834		25,928
Total Assets		$ 1,694,885		$ 513,378
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 18,100	$ 15,368
Other accrued liabilities	36,902	21,025
Deferred revenue	19,448	19,270
Current portion of obligations under capital leases	-	-
Total current liabilities	74,450	55,663
Convertible subordinated notes	1,150,000	-
Preferred stock, common stock and additional paid- in capital	517,922	513,698
Deferred stock compensation	(2,468)	(3,001)
Accumulated other comprehensive loss	(923)	(815)
Accumulated deficit	(44,096)	(52,167)
Total Liabilities and Stockholders' Equity	$ 1,694,885	$ 513,378
(1) Derived from audited financial statements

JUNIPER NETWORKS, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (i) (In thousands, except per share amounts)
		Three Months Ended March 31,
		2000		1999
		(unaudited)
Net revenues	$ 63,886	$ 10,044
Cost of revenues	25,101	6,347
Gross profit	38,785	3,697
Operating expenses:
Research and development	15,990	6,181
Sales and marketing	11,505	2,603
General and administrative	3,014	776
Total operating expenses	30,509	9,560
Operating income/(loss)	8,276	(5,863)
Interest income, net	6,636	112
Income/(loss) before income taxes	14,912	(5,751)
Provision for income taxes	4,450	20
Net income/(loss)	$ 10,462	$ (5,771)
Basic net income/(loss) per share	$ 0.07	$ (0.13)
Shares used in computing basic net income/(loss) per share	147,772	44,970
Diluted net income/(loss) per share	$ 0.06	$ (0.13)
Shares used in computing diluted net income/(loss) per share	175,145	44,970
(i) The statements exclude the impact of the amortization of goodwill and deferred stock compensation in both periods.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended March 31,
		2000		1999
		(unaudited)
Net revenues	$ 63,886	$ 10,044
Cost of revenues	25,101	6,347
Gross profit	38,785	3,697
Operating expenses:
Research and development	15,990	6,181
Sales and marketing	11,505	2,603
General and administrative	3,014	776
Goodwill and deferred stock compensation	2,391	904
Total operating expenses	32,900	10,464
Operating income/(loss)	5,885	(6,767)
Interest income, net	6,636	112
Income/(loss) before income taxes	12,521	(6,655)
Provision for income taxes	4,450	20
Net income/(loss)	$ 8,071	$ (6,675)
Basic net income/(loss) per share	$ 0.05	$ (0.15)
Shares used in computing basic net income/(loss) per share	147,772	44,970
Diluted net income/(loss) per share	$ 0.05	$ (0.15)
Shares used in computing diluted net income/(loss) per share	175,145	44,970
Pro forma basic and diluted net loss per share (i)		$ (0.06)
Shares used in computing pro forma basic and diluted net loss per share (i)		117,903
(i) Pro forma basic and diluted shares outstanding include convertible preferred stock using the if-converted method from the original date of issuance. The calculation excludes common stock equivalents, as their effect would be anti-dilutive.