Juniper Networks, Inc. Reports Q4'00 and Year End 2000 Financial Results Q4'00 Net Revenue $295.4M; Pro forma EPS $0.24 2000 Net Revenue $673.5M; Pro forma EPS $0.53

Juniper Networks, Inc. Reports Q4'00 and Year End 2000 Financial Results Q4'00 Net Revenue $295.4M; Pro forma EPS $0.24 2000 Net Revenue $673.5M; Pro forma EPS $0.53

Sunnyvale, CA - January 16, 2001 — Juniper Networks, Inc. (Nasdaq: JNPR), a leading provider of next-generation IP infrastructure systems, today reported its fourth quarter results for the period ending December 31, 2000.

Net revenues for the fourth quarter were $295.4 million, compared with $201.2 million for the third quarter, an increase of 47%. Pro forma net income was $84.6 million or $0.24 per share, compared with pro forma net income of $60.3 million or $0.17 per share in the third quarter of 2000.

Actual net income for the fourth quarter, which includes amortization of goodwill and other purchased intangibles of $5.3 million, amortization of deferred compensation of $11.5 million and in-process research and development of $10.0 million, was $62.2 million or $0.18 per share, compared with $58.1 million or $0.17 per share in the third quarter of 2000.

Net revenues for the year ended December 31, 2000 were $673.5 million, compared with $102.6 million for the year ended December 31, 1999. Pro forma net income for 2000 was $184.0 million or $0.53 per share, compared with pro forma net loss of $4.7 million or $(0.03) per share during 1999. Actual net income for 2000 was $147.9 million or $0.43 per share, compared with actual net loss of $9.0 million or $(0.05) per share during 1999.

"Our fourth quarter, as well as our full-year results, underscore the value of Juniper's commitment to focus and execution," said Scott Kriens, Chairman and CEO of Juniper Networks. "This commitment will continue and intensify in 2001 as we expand our delivery of networked services worldwide."

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 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. Internet Processor II, JUNOS, M5, M10, 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)
		December 31, 2000		December 31, 1999
Assets
Current assets:
Cash and cash equivalents	$ 563,005	$ 158,043
Short-term investments	581,738	187,915
Accounts receivable, net	176,535	23,950
Prepaid expenses and other current assets	27,269	7,925
Total current assets	1,348,547	377,833
Property and equipment, net	36,440	12,416
Long-term investments	450,568	97,201
Other long-term assets	267,574	25,928
Total Assets	$ 2,103,129	$ 513,378
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 72,347	$ 15,368
Other accrued liabilities	109,436	21,025
Deferred revenue	34,625	19,270
Total current liabilities	216,408	55,663
Convertible subordinated notes and other long-term liabilities	1,156,719	-
Common stock and additional paid-in capital	735,103	513,698
Deferred stock compensation	(111,813)	(3,001)
Accumulated other comprehensive income (loss)	10,963	(815)
Retained earnings/(Accumulated deficit)	95,749	(52,167)
Total Liabilities and Stockholders' Equity	$ 2,103,129	$ 513,378

JUNIPER NETWORKS, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (i) (In thousands, except per share amounts)
		Three Months Ended December 31,				Year Ended December 31,
		2000		1999		2000		1999
		(unaudited)
Net revenues	$ 295,386		$ 45,442	$ 673,501		$ 102,606
Cost of revenues	101,410	18,390	237,554	45,272
Gross profit	193,976	27,052	435,947	57,334
Operating expenses:
Research and development	30,243	15,819	87,833	41,502
Sales and marketing	36,892	8,869	89,029	20,931
General and administrative	8,545	1,781	21,176	5,235
Total operating expenses	75,680	26,469	198,038	67,668
Operating income/(loss)	118,296	583	237,909	(10,334)
Interest income, net	8,127	6,086	36,283	8,011
Income/(loss) before income taxes	126,423	6,669	274,192	(2,323)
Provision for income taxes	41,823	1,900	90,156	2,425
Net income/(loss)	$ 84,600	$ 4,769	$ 184,036	$ (4,748)
Basic net income/(loss) per share	$ 0.27	$ 0.02	$ 0.60	$ (0.03)
Shares used in computing basic net income/(loss) per share	312,423	287,810	304,381	189,322
Diluted net income/(loss) per share	$ 0.24	$ 0.01	$ 0.53	$ (0.03)
Shares used in computing diluted net income/(loss) per share	349,505	343,652	347,858	189,322
(i) The statements exclude the impact of the amortization of goodwill, deferred stock compensation, in-process R&D and charitable contribution charges in all periods.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended December 31,				Year Ended December 31,
		2000		1999		2000		1999
		(unaudited)
Net revenues	$ 295,386		$ 45,442	$ 673,501		$ 102,606
Cost of revenues	101,410	18,390	237,554	45,272
Gross profit	193,976	27,052	435,947	57,334
Operating expenses:
Research and development	30,243	15,819	87,833	41,502
Sales and marketing	36,892	8,869	89,029	20,931
General and administrative	8,545	1,781	21,176	5,235
Goodwill, purchased intangibles, and deferred stock compensation	16,843	1,689	23,820	4,286
In-process research and development	10,000	-	10,000	-
Charitable contribution	-	-	10,000	-
Total operating expenses	102,523	28,158	241,858	71,954
Operating income/(loss)	91,453	(1,106)	194,089	(14,620)
Interest income, net	8,127	6,086	36,283	8,011
Income/(loss) before income taxes	99,580	4,980	230,372	(6,609)
Provision for income taxes	37,423	1,900	82,456	2,425
Net income/(loss)	$ 62,157	$ 3,080	$ 147,916	$ (9,034)
Basic net income/(loss) per share	$ 0.20	$ 0.01	$ 0.49	$ (0.05)
Shares used in computing basic net income/(loss) per share	312,423	287,810	304,381	189,322
Diluted net income/(loss) per share	$ 0.18	$ 0.01	$ 0.43	$ (0.05)
Shares used in computing diluted net income/(loss) per share	349,505	343,652	347,858	189,322