Juniper Networks, Inc. Reports Q3'00 Financial Results Net Revenue $201.2M; Pro forma EPS $0.17

Juniper Networks, Inc. Reports Q3'00 Financial Results Net Revenue $201.2M; Pro forma EPS $0.17

Sunnyvale, CA - October 12, 2000 — Juniper Networks, Inc. (Nasdaq:JNPR), a leading provider of next-generation IP infrastructure systems, today reported its third quarter results for the period ending September 30, 2000.

Net revenues for the third quarter were $201.2 million, compared with $113.0 million for the second quarter, an increase of 78%. Pro forma net income, which excludes the amortization of goodwill of $1.9 million and the deferred compensation charge of $415,000, was $60.3 million or $0.17 per share, compared with a pro forma net income of $28.6 million or $0.08 per share in the second quarter of 2000.

Actual net income for the third quarter, including the above-mentioned amortization of goodwill and deferred compensation charges, was $58.1 million or $0.17 per share, compared with $19.6 million or $0.06 per share in the second quarter of 2000.

Net revenues for the first nine months of 2000 were $378.1 million, compared with $57.2 million for the same nine month period in 1999. Pro forma net income for the first nine months of 2000 was $99.4 million or $0.29 per share, compared with pro forma net loss of $9.5 million or $(0.06) per share during the same nine month period in 1999. Actual net income for the first nine months of 2000 was $85.8 million or $0.25 per share, compared with actual net loss of $12.1 million or $(0.08) per share during the same nine month period in 1999.

"Our performance during the third quarter reflects the return on our commitment and focus on continued execution," said Scott Kriens, Chairman and CEO of Juniper Networks. "The expansion of our product portfolio and our customer base throughout the world further solidify our opportunities in the IP infrastructure market," 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 Sunnyvale, California. For more information, please visit the Web site at http://www.juniper.net.

Juniper Networks is a registered trademark 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)
		September 30, 2000		December 31, 1999
Assets		(unaudited)		(1)
Current assets:
Cash and cash equivalents		$ 571,201		$ 158,043
Short-term investments		567,731		187,915
Accounts receivable, net		116,319		23,950
Prepaid expenses and other current assets		20,775		7,925
Total current assets		1,276,026		377,833
Property and equipment, net		33,039		12,416
Long-term investments		508,630		97,201
Other long-term assets		127,730		25,928
Total Assets		$ 1,945,425		$ 513,378
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 48,431	$ 15,368
Other accrued liabilities	108,105	21,025
Deferred revenue	34,770	19,270
Total current liabilities	191,306	55,663
Convertible subordinated notes and other long-term liabilities	1,161,080	-
Common stock and additional paid-in capital	540,315	513,698
Deferred stock compensation	(1,595)	(3,001)
Accumulated other comprehensive income (loss)	20,727	(815)
Retained earnings/(Accumulated deficit)	33,592	(52,167)
Total Liabilities and Stockholders' Equity	$ 1,945,425	$ 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 September 30,   Nine Months Ended September 30,   2000   1999 2000   1999   (unaudited) (unaudited)   Net revenues $ 201,201   $ 29,564 $ 378,115   $ 57,164   Cost of revenues 70,291 12,490 136,144 26,883   Gross profit 130,910 17,074 241,971 30,281   Operating expenses:     Research and development 23,600 11,510 57,590 25,682   Sales and marketing 23,385 5,610 52,137 12,062   General and administrative 5,446 1,701 12,631 3,454     Total operating expenses 52,431 18,821 122,358 41,198   Operating income/(loss) 78,479 (1,747) 119,613 (10,917)   Interest income, net 11,645 1,365 28,157 1,925   Income/(loss) before income taxes 90,124 (382) 147,770 (8,992)   Provision for income taxes 29,781 403 48,333 525   Net income/(loss) $ 60,343 $ (785) $ 99,437 $ (9,517)   Basic net income/(loss) per share $ 0.20 $ (0.00) $ 0.33 $ (0.06) Shares used in computing basic net income/(loss) per share 307,679 270,918 301,701 156,054   Diluted net income/(loss) per share $ 0.17 $ (0.00) $ 0.29 $ (0.06) Shares used in computing diluted net income/(loss) per share 349,721 270,918 347,309 156,054   (i) The statements exclude the impact of the amortization of goodwill, deferred stock compensation and charitable contribution charges in all periods.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)     Three Months Ended September 30,   Nine Months Ended September 30,   2000   1999 2000   1999   (unaudited) (unaudited)   Net revenues $ 201,201   $ 29,564 $ 378,115   $ 57,164   Cost of revenues 70,291 12,490 136,144 26,883   Gross profit 130,910 17,074 241,971 30,281   Operating expenses:   Research and development 23,600 11,510 57,590 25,682   Sales and marketing 23,385 5,610 52,137 12,062   General and administrative 5,446 1,701 12,631 3,454 Goodwill and deferred stock compensation 2,272 802 6,977 2,597   Charitable contribution - - 10,000 -     Total operating expenses 54,703 19,623 139,335 43,795   Operating income/(loss) 76,207 (2,549) 102,636 (13,514)   Interest income, net 11,645 1,365 28,157 1,925   Income/(loss) before income taxes 87,852 (1,184) 130,793 (11,589)   Provision for income taxes 29,781 403 45,033 525   Net income/(loss) $ 58,071 $ (1,587) $ 85,760 $ (12,114)   Basic net income/(loss) per share $ 0.19 $ (0.01) $ 0.28 $ (0.08) Shares used in computing basic net income/(loss) per share 307,679 270,918 301,701 156,054   Diluted net income/(loss) per share $ 0.17 $ (0.01) $ 0.25 $ (0.08) Shares used in computing diluted net income/(loss) per share 349,721 270,918 347,309 156,054