Juniper Networks, Inc. Reports Q1'01 Financial Results Net Revenue $332.1M, up 420%; Pro forma EPS $0.25

Juniper Networks, Inc. Reports Q1'01 Financial Results Net Revenue $332.1M, up 420%; Pro forma EPS $0.25

Sunnyvale, CA - April 12, 2001 — 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, 2001.

Net revenues for the first quarter were $332.1 million, compared with $63.9 million for the same period last year, an increase of 420%. Pro forma net income was $85.4 million or $0.25 per share, compared with pro forma net income of $10.5 million or $0.03 per share for the first quarter of 2000.

Actual net income for the first quarter, which includes amortization of goodwill and other purchased intangibles of $12.3 million and amortization of deferred compensation of $24.3 million, was $58.6 million or $0.17 per share, compared with net income of $8.1 million or $0.02 per share in the first quarter of 2000.

"We are particularly pleased to report the continued growth and execution of Juniper Networks, especially given the challenges of today's economy," said Scott Kriens, Chairman and CEO of Juniper Networks. "These results reflect not only the strength of the company, our products, and our global customer base, but also our continued focus on the financial fundamentals."

Juniper Networks will have a conference call Webcast at http://www.juniper.net/conferencecall to discuss these results on Thursday, April 12, 2001 beginning at 5:00 A.M. Pacific Time.

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)
		March 31, 2001		December 31, 2000
Assets		(unaudited)		(1)
Current assets:
Cash and cash equivalents		$ 557,742		$ 563,005
Short-term investments		504,872		581,738
Accounts receivable, net		193,169		176,535
Prepaid expenses and other current assets		26,131		27,269
Total current assets		1,281,914		1,348,547
Property and equipment, net		250,702		36,440
Long-term investments		447,756		450,568
Other long-term assets		248,600		267,574
Total Assets		$ 2,228,972		$ 2,103,129
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 86,074	$ 72,347
Other accrued liabilities	134,272	109,436
Deferred revenue	25,506	34,625
Total current liabilities	245,852	216,408
Convertible subordinated notes	1,152,356	1,156,719
Common stock and additional paid-in capital	756,006	735,103
Deferred stock compensation	(87,569)	(111,813)
Accumulated other comprehensive income	8,012	10,963
Retained earnings	154,315	95,749
Total Liabilities and Stockholders' Equity	$ 2,228,972	$ 2,103,129
(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,
		2001		2000
		(unaudited)
Net revenues	$ 332,105	$ 63,886
Cost of revenues	113,741	25,101
Gross profit	218,364	38,785
Operating expenses:
Research and development	42,991	15,990
Sales and marketing	41,322	11,505
General and administrative	10,468	3,014
Total operating expenses	94,781	30,509
Operating income	123,583	8,276
Interest income, net	1,992	6,636
Income before income taxes	125,575	14,912
Provision for income taxes	40,183	4,450
Net income	$ 85,392	$ 10,462
Basic net income per share	$ 0.27	$ 0.04
Shares used in computing basic net income per share	315,571	295,554
Diluted net income per share	$ 0.25	$ 0.03
Shares used in computing diluted net income per share	344,918	350,290
(i) The statements exclude the impact of the amortization of goodwill, other purchased intangibles, 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,
		2001		2000
		(unaudited)
Net revenues	$ 332,105	$ 63,886
Cost of revenues	113,741	25,101
Gross profit	218,364	38,785
Operating expenses:
Research and development	42,991	15,990
Sales and marketing	41,322	11,505
General and administrative	10,468	3,014
Goodwill, purchased intangibles,   and deferred stock compensation	36,583	2,391
Total operating expenses	131,364	32,900
Operating income	87,000	5,885
Interest income, net	1,992	6,636
Income before income taxes	88,992	12,521
Provision for income taxes	30,426	4,450
Net income	$ 58,566	$ 8,071
Basic net income per share	$ 0.19	$ 0.03
Shares used in computing basic net income per share	315,571	295,554
Diluted net income per share	$ 0.17	$ 0.02
Shares used in computing diluted net income per share	344,918	350,290