Juniper Networks, Inc. Reports Q1 '02 Financial Results Net Revenue $122.2M; Pro forma EPS $0.00

Juniper Networks, Inc. Reports Q1 '02 Financial Results Net Revenue $122.2M; Pro forma EPS $0.00

Sunnyvale, CA - April 11, 2002 — Juniper Networks, Inc. (Nasdaq: JNPR), a leading provider of trusted IP infrastructures for the New Public Network, today reported its first quarter results for the period ending March 31, 2002

Net revenues for the first quarter were $122.2 million, compared with $332.1 million for the same period last year, a decrease of 63%. Pro forma net income was $423,000 or $0.00 per share, compared with pro forma net income of $85.4 million or $0.25 per share for the first quarter of 2001.

Actual net loss for the first quarter, which includes amortization of deferred compensation of $13.6 million, amortization of purchased intangibles of $1.6 million and write-downs in equity investments totaling $30.6 million, was $46.0 million or ($0.14) per share, compared with net income of $58.6 million or $0.17 per share in the first quarter of 2001.

"The critical objective for Juniper Networks is to position ourselves for the industry recovery," said Scott Kriens, Chairman and CEO of Juniper Networks. "The company benefits from increased customer reception, and remains financially healthy while committed to investment and innovation across multiple markets, which will drive our growth as the industry outlook improves."

About Juniper Networks, Inc.

Juniper Networks leads the industry in turning network innovation into the reliable delivery of edge, core, mobile, and cable Internet services at scale for the New Public Network. Headquartered in Sunnyvale, California, Juniper Networks offers additional information on its product and service offerings at 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. Broadband Cable Processor, G10, Internet Processor, Internet Processor II, JUNOS, JUNOScript, M5, M10, M20, M40, M40e 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)
		March 31, 2002		December 31, 2001
Assets		(unaudited)		(1)
Current assets:
Cash and cash equivalents		$ 705,184		$ 606,845
Short-term investments		346,882		382,797
Accounts receivable, net		65,916		103,524
Prepaid expenses and other current assets		29,347		32,882
Total current assets		1,147,329		1,126,048
Property and equipment, net		253,917		251,811
Long-term investments		645,672		708,232
Other long-term assets		274,073		303,497
Total Assets		$ 2,320,991		$ 2,389,588
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 53,127	$ 76,417
Other accrued liabilities	120,677	128,960
Deferred revenue	30,628	36,842
Total current liabilities	204,432	242,219
Convertible subordinated notes	1,150,000	1,150,000
Common stock and additional paid-in capital	974,074	959,684
Deferred stock compensation	(49,435)	(63,065)
Accumulated other comprehensive income	5,591	18,418
Retained earnings	36,329	82,332
Total Liabilities and Stockholders' Equity	$ 2,320,991	$ 2,389,588
(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,
		2002		2001
		(unaudited)
Revenues:
Product revenues		$ 104,546	$ 323,845
Service revenues		17,673	8,260
Net revenues		122,219	332,105
Cost of revenues	49,996	113,741
Gross profit	72,223	218,364
Operating expenses:
Research and development	35,069	42,991
Sales and marketing	27,578	41,322
General and administrative	9,549	10,468
Total operating expenses	72,196	94,781
Operating income	27	123,583
Other income, net	1,620	1,992
Equity in joint venture	(1,025)	-
Income before income taxes	622	125,575
Provision for income taxes	199	40,183
Net income	$ 423	$ 85,392
Basic net income per share	$ 0.00	$ 0.27
Shares used in computing basic net income per share	329,367	315,571
Diluted net income per share	$ 0.00	$ 0.25
Shares used in computing diluted net income per share	342,831	344,918
(i) The statement ended March 31, 2002 excludes the impact of amortization of deferred stock compensation, amortization of purchased intangibles and write-downs in equity investments and the statement ended March 31, 2001 excludes the impact of the amortization of goodwill, other purchased intangibles and deferred stock compensation.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended March 31,
		2002		2001
		(unaudited)
Revenues:
Product revenues		$ 104,546	$ 323,845
Service revenues		17,673	8,260
Net revenues		122,219	332,105
Cost of revenues	49,996	113,741
Gross profit	72,223	218,364
Operating expenses:
Research and development	35,069	42,991
Sales and marketing	27,578	41,322
General and administrative	9,549	10,468
Amortization of purchased intangibles   and deferred stock compensation	15,275	36,583
Total operating expenses	87,471	131,364
Operating income (loss)	(15,248)	87,000
Other income, net	1,620	11,992
Losses realized on minority investments	(30,600)	(10,000)
Equity in joint venture	(1,025)	-
Income (loss) before income taxes	(45,253)	88,992
Provision for income taxes	750	30,426
Net income (loss)	$ (46,003)	$ 58,566
Basic net income (loss) per share	$ (0.14)	$ 0.19
Shares used in computing basic net income (loss) per share	329,367	315,571
Diluted net income (loss) per share	$ (0.14)	$ 0.17
Shares used in computing diluted net income (loss) per share	329,367	344,918