Juniper Networks, Inc. Reports Q3'01 Financial Results Net Revenue $201.7M; Pro forma EPS $0.10

Juniper Networks, Inc. Reports Q3'01 Financial Results Net Revenue $201.7M; Pro forma EPS $0.10

Sunnyvale, CA - October 11, 2001 -- 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, 2001.

Net revenues for the third quarter were $201.7 million, compared with $201.2 million for the same period last year. Pro forma net income was $32.5 million or $0.10 per share, compared with pro forma net income of $60.3 million or $0.17 per share for the third quarter of 2000.

Actual net loss for the third quarter, which includes amortization of goodwill and other purchased intangibles of $12.1 million, amortization of deferred compensation of $15.9 million, a charge to contract manufacturers of $39.9 million and impairment write-downs in equity investments totaling $11.0 million, was $29.7 million or $0.09 per share, compared with net income of $58.1 million or $0.17 per share in the third quarter of 2000.

Net revenues for the first nine months of 2001 were $736.0 million, up 95%, compared with $378.1 million for the same nine month period in 2000. Pro forma net income for the first nine months of 2001 was $154.0 million or $0.45 per share, compared with pro forma net income of $99.4 million or $0.29 per share during the same nine month period in 2000. Actual net loss for the first nine months of 2001 was $8.3 million or $0.03 per share, compared with actual net income of $85.8 million or $0.25 per share during the same nine month period in 2000.

In addition, the Board of Directors authorized a stock repurchase program of up to $200 million over the next two years, effective immediately.

"The ability to deliver a strong bottom line in difficult times is strategic," said Scott Kriens, Chairman and CEO of Juniper Networks. "Our focus on financial fundamentals enables us to fund and extend our product and technology advantages in support of our long-term vision of building the new public network," 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 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 registered in the U.S. Patent and Trademark Office and in other countries as a trademark of Juniper Networks, Inc. Internet Processor, Internet Processor II, JUNOS, JUNOScript, M5, M10, M20, M40, and M160 are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are 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, 2001		December 31, 2000
Assets		(unaudited)		(1)
Current assets:
Cash and cash equivalents		$ 666,472		$ 563,005
Short-term investments		411,450		581,738
Accounts receivable, net		111,905		176,535
Prepaid expenses and other current assets		25,776		27,269
Total current assets		1,215,603		1,348,547
Property and equipment, net		252,715		36,440
Long-term investments		610,760		450,568
Other long-term assets		187,698		267,574
Total Assets		$ 2,266,776		$ 2,103,129
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 56,484	$ 72,347
Other accrued liabilities	204,581	109,436
Deferred revenue	32,064	34,625
Total current liabilities	293,129	216,408
Convertible subordinated notes and other long-term liabilities	1,150,000	1,156,719
Common stock and additional paid-in capital	772,827	735,103
Deferred stock compensation	(52,904)	(111,813)
Accumulated other comprehensive income	16,266	10,963
Retained earnings	87,458	95,749
Total Liabilities and Stockholders' Equity	$ 2,266,776	$ 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 September 30,				Nine Months Ended September 30,
		2001		2000		2001		2000
		(unaudited)				(unaudited)
Net revenues	$ 201,703		$ 201,201	$ 735,989		$ 378,115
Cost of revenues	79,899	70,291	274,120	136,144
Gross profit	121,804	130,910	461,869	241,971
Operating expenses:
Research and development	37,897	23,600	122,965	57,590
Sales and marketing	33,591	23,385	110,876	52,137
General and administrative	9,185	5,446	29,092	12,631
Total operating expenses	80,673	52,431	262,933	122,358
Operating income	41,131	78,479	198,936	119,613
Interest income, net	8,188	11,645	30,096	28,157
Equity in joint venture	(1,476)	-	(2,561)	-
Income before income taxes	47,843	90,124	226,471	147,770
Provision for income taxes	15,310	29,781	72,471	48,333
Net income	$ 32,533	$ 60,343	$ 154,000	$ 99,437
Basic net income per share	$ 0.10	$ 0.20	$ 0.48	$ 0.33
Shares used in computing basic net income per share	320,178	307,679	317,981	301,701
Diluted net income per share	$ 0.10	$ 0.17	$ 0.45	$ 0.29
Shares used in computing diluted net income per share	337,106	349,721	341,411	347,309
(i) The pro forma statements exclude the impact of a settlement charge to contract manufacturers of $39.9 million in Q3 of 2001, the amortization of goodwill and deferred stock compensation in all periods, restructuring costs in Q2 of 2001, minority investment write-downs in Q1, Q2 and Q3 of 2001 and a charitable contribution charge in Q2 of 2000.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2001		2000		2001		2000
		(unaudited)				(unaudited)
Net revenues	$ 201,703		$ 201,201	$ 735,989		$ 378,115
Cost of revenues	119,767	70,291	313,988	136,144
Gross profit	81,936	130,910	422,001	241,971
Operating expenses:
Research and development	37,897	23,600	122,965	57,590
Sales and marketing	33,591	23,385	110,876	52,137
General and administrative	9,185	5,446	29,092	12,631
Goodwill and deferred stock compensation	27,966	2,272	95,666	6,977
Restructuring costs	-	-	12,340	-
Charitable contribution	-	-	-	10,000
Total operating expenses	108,639	54,703	370,939	139,335
Operating income/(loss)	(26,703)	76,207	51,062	102,636
Interest income, net	8,188	11,645	30,096	28,157
Losses realized on minority investments	(11,000)	-	(53,620)	-
Equity in joint venture	(1,476)	-	(2,561)	-
Income/(loss) before income taxes	(30,991)	87,852	24,977	130,793
Provision for income taxes	(1,265)	29,781	33,268	45,033
Net income/(loss)	$ (29,726)	$ 58,071	$ (8,291)	$ 85,760
Basic net income/(loss) per share	$ (0.09)	$ 0.19	$ (0.03)	$ 0.28
Shares used in computing basic net income/(loss) per share	320,178	307,679	317,981	301,701
Diluted net income/(loss) per share	$ (0.09)	$ 0.17	$ (0.03)	$ 0.25
Shares used in computing diluted net income/(loss) per share	320,178	349,721	317,981	347,309