Juniper Networks, Inc. Reports Q4'02 and Year End 2002 Financial Results

Juniper Networks, Inc. Reports Q4'02 and Year End 2002 Financial Results

Q4'02 Net Revenue $155.3M; Pro forma EPS $0.01
2002 Net Revenue $546.5M; Pro forma EPS $(0.01)

Sunnyvale, CA - January 16, 2003—Juniper Networks, Inc. (NASDAQ: JNPR) today reported its fourth quarter results for the period ending December 31, 2002.

Actual net income for the fourth quarter, which includes amortization of purchased intangibles, a deferred compensation credit and a change in an estimated restructuring charge, was $8.5 million or $0.02 per share, compared with a net loss of $5.1 million or $0.02 per share in the fourth quarter of 2001.

Net revenues for the year ended December 31, 2002 were $546.5 million, compared with $887.0 million for the year ended December 31, 2001. Pro forma net loss for 2002 was $4.8 million or $0.01 per share, compared with pro forma net income of $169.9 million or $0.50 per share during 2001. Actual net loss for 2002 was $119.6 million or $0.34 per share, compared with $13.4 million or $0.04 per share during 2001.

"We are entering 2003 with a position of improved confidence, which is a designed result of our focus and execution over the last year," said Scott Kriens, Chairman and CEO of Juniper Networks. "As the industry transformation to IP continues the market is moving towards exactly the solutions that Juniper was built to deliver."

 

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
		December 31, 2002		December 31, 2001
Assets
Current assets:
Cash and cash equivalents		$ 194,435		$ 606,845
Short-term investments		384,036		382,797
Accounts receivable, net		78,501		103,524
Prepaid expenses and other current assets		23,957		32,882
Total current assets		680,929		1,126,048
Property and equipment, net		266,962		251,811
Long-term investments		583,664		708,232
Goodwill, purchased intangible assets and other long- term assets, net		1,083,114		303,497
Total Assets		$ 2,614,669		$ 2,389,588
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 51,747	$ 76,417
Other accrued liabilities	144,131	128,960
Deferred revenue	46,146	36,842
Total current liabilities	242,024	242,219
Convertible subordinated notes	942,114	1,150,000
Common stock and additional paid-in capital	1,461,910	959,684
Deferred stock compensation	(11,113)	(63,065)
Accumulated other comprehensive income	17,052	18,418
Retained earnings (Accumulated deficit)	(37,318)	82,332
Total Liabilities and Stockholders' Equity	$ 2,614,669	$ 2,389,588

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,
		2002		2001		2002		2001
Revenues:
Product Revenues	$ 133,829		$   133,058	$ 467,651		$   830,899
Service Revenues	21,437		17,975	78,896		56,123
Net revenues	155,266		151,033	546,547		887,022
Cost of revenues	63,092	58,783	230,108	332,903
Gross profit	92,174	92,250	316,439	554,119
Operating expenses:
Research and development	44,281	32,565	161,891	155,530
Sales and marketing	35,582	29,531	126,803	140,407
General and administrative	6,502	8,462	34,263	37,554
Total operating expenses	86,365	70,558	322,957	333,491
Operating income (loss)	5,809	21,692	(6,518)	220,628
Interest income (expense), net	(1,794)	3,274	799	33,370
Equity in joint venture	-	(1,515)	(1,316)	(4,076)
Income (loss) before income taxes	4,015	23,451	(7,035)	249,922
Provision (benefit) for income taxes	1,285	7,504	(2,251)	79,975
Net income (loss)	$ 2,730	$ 15,947	$ (4,784)	$ 169,947
Basic net income (loss) per share	$ 0.01	$ 0.05	$ (0.01)	$ 0.53
Shares used in computing per share information	372,511	323,570	350,695	319,378
Diluted net income (loss) per share	$ 0.01	$ 0.05	$ (0.01)	$ 0.50
Shares used in computing per share information	382,504	338,841	350,695	340,768
(i) The pro forma statements exclude the impact of the contract manufacturer charge, amortization of purchased intangibles, deferred stock compensation, restructuring and other operating costs, in-process research and development, integration costs, gains from debt extinguishment and losses on equity investments in all applicable periods. See reconciliation to GAAP information on page 5.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended December 31,				Year Ended December 31,
		2002		2001		2002		2001
Revenues:
Product Revenues	$ 133,829		$   133,058	$ 467,651		$   830,899
Service Revenues	21,437		17,975	78,896		56,123
Net revenues	155,266		151,033	546,547		887,022
Cost of revenues	63,092	58,783	230,108	372,771
Gross profit	92,174	92,250	316,439	514,251
Operating expenses:
Research and development	44,281	32,565	161,891	155,530
Sales and marketing	35,582	29,531	126,803	140,407
General and administrative	6,502	8,462	34,263	37,554
Goodwill, purchased intangibles and deferred stock compensation	(3,336)	27,691	14,304	123,357
Restructuring and other operating costs	(2,601)	-	20,229	12,340
In-process research and development	-	4,200	83,479	4,200
Integration costs	-	-	2,507	-
Total operating expenses	80,428	102,449	443,476	473,388
Operating income (loss)	11,746	(10,199)	(127,037)	40,863
Interest income (expense), net	(1,794)	3,274	799	33,370
Gain from Debt extinguishment	-	-	62,855	-
Losses on equity investments	-	-	(50,451)	(53,620)
Equity in joint venture	-	(1,515)	(1,316)	(4,076)
Income (loss) before income taxes	9,952	(8,440)	(115,150)	16,537
Provision (benefit) for income taxes	1,500	(3,314)	4,500	29,954
Net income (loss)	$ 8,452	$ (5,126)	$ (119,650)	$ (13,417)
Basic net income (loss) per share	$ 0.02	$ (0.02)	$ (0.34)	$ (0.04)
Shares used in computing per share information	372,511	323,570	350,695	319,378
Diluted net income (loss) per share	$ 0.02	$ (0.02)	$ (0.34)	$ (0.04)
Shares used in computing per share information	382,504	323,570	350,695	319,378

About Juniper Networks, Inc.

Juniper Networks leads the industry in turning network innovation into the reliable delivery of core, edge, 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, ERX, ESP, G1, G10, G-series, Internet Processor, JUNOS, JUNOScript, M5, M10, M20, M40, M40e, M160, M-series, NMC-RX, SDX, ServiceGuard, T320, T640, T-series, UMC, and Unison are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.