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Juniper Networks, Inc. Reports Q3'00 Financial Results Net Revenue $201.2M; Pro forma EPS $0.17

Sunnyvale, CA - October 12, 2000 - 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, 2000.

Net revenues for the third quarter were $201.2 million, compared with $113.0 million for the second quarter, an increase of 78%. Pro forma net income, which excludes the amortization of goodwill of $1.9 million and the deferred compensation charge of $415,000, was $60.3 million or $0.17 per share, compared with a pro forma net income of $28.6 million or $0.08 per share in the second quarter of 2000.

Actual net income for the third quarter, including the above-mentioned amortization of goodwill and deferred compensation charges, was $58.1 million or $0.17 per share, compared with $19.6 million or $0.06 per share in the second quarter of 2000.

Net revenues for the first nine months of 2000 were $378.1 million, compared with $57.2 million for the same nine month period in 1999. Pro forma net income for the first nine months of 2000 was $99.4 million or $0.29 per share, compared with pro forma net loss of $9.5 million or $(0.06) per share during the same nine month period in 1999. Actual net income for the first nine months of 2000 was $85.8 million or $0.25 per share, compared with actual net loss of $12.1 million or $(0.08) per share during the same nine month period in 1999.

"Our performance during the third quarter reflects the return on our commitment and focus on continued execution," said Scott Kriens, Chairman and CEO of Juniper Networks. "The expansion of our product portfolio and our customer base throughout the world further solidify our opportunities in the IP infrastructure market," 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 purpose-built 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 https://www.juniper.net.

Juniper Networks is a registered trademark 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)
    September 30,
2000
  December 31,
1999
     
Assets (unaudited) (1)
Current assets:    
  Cash and cash equivalents
$ 571,201
$ 158,043
  Short-term investments 567,731 187,915
  Accounts receivable, net 116,319 23,950
  Prepaid expenses and other current assets 20,775 7,925
     
    Total current assets 1,276,026 377,833
Property and equipment, net 33,039 12,416
Long-term investments 508,630 97,201
Other long-term assets 127,730 25,928
     
   Total Assets
$ 1,945,425
$ 513,378
     
 
Liabilities and Stockholders' Equity    
Current liabilities:    
  Accounts payable
$ 48,431
$ 15,368
  Other accrued liabilities 108,105 21,025
  Deferred revenue 34,770 19,270
     
    Total current liabilities 191,306 55,663
Convertible subordinated notes and other long-term liabilities 1,161,080 -
 
Common stock and additional paid-in capital 540,315 513,698
Deferred stock compensation (1,595) (3,001)
Accumulated other comprehensive income (loss) 20,727 (815)
Retained earnings/(Accumulated deficit) 33,592 (52,167)
     
   Total Liabilities and Stockholders' Equity
$ 1,945,425
$ 513,378
     
 
(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,
2000 1999 2000 1999
(unaudited) (unaudited)
Net revenues
$ 201,201
$ 29,564
$ 378,115
$ 57,164
Cost of revenues 70,291 12,490 136,144 26,883
Gross profit 130,910 17,074 241,971 30,281
Operating expenses:
  Research and development 23,600 11,510 57,590 25,682
  Sales and marketing 23,385 5,610 52,137 12,062
  General and administrative 5,446 1,701 12,631 3,454
    Total operating expenses 52,431 18,821 122,358 41,198
Operating income/(loss) 78,479 (1,747) 119,613 (10,917)
Interest income, net 11,645 1,365 28,157 1,925
Income/(loss) before income taxes 90,124 (382) 147,770 (8,992)
Provision for income taxes 29,781 403 48,333 525
Net income/(loss)
$ 60,343
$ (785)
$ 99,437
$ (9,517)
Basic net income/(loss) per share
$ 0.20
$ (0.00)
$ 0.33
$ (0.06)
Shares used in computing basic
net income/(loss) per share
307,679 270,918 301,701 156,054
Diluted net income/(loss) per share
$ 0.17
$ (0.00)
$ 0.29
$ (0.06)
Shares used in computing diluted
net income/(loss) per share
349,721 270,918 347,309 156,054
(i) The statements exclude the impact of the amortization of goodwill, deferred stock compensation and charitable contribution charges in all periods.


JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

    Three Months Ended
September 30,
  Nine Months Ended
September 30,
     
  2000   1999 2000   1999
     
  (unaudited) (unaudited)
 
Net revenues
$ 201,201
 
$ 29,564
$ 378,115
 
$ 57,164
 
Cost of revenues 70,291 12,490 136,144 26,883
     
 
Gross profit 130,910 17,074 241,971 30,281
 
Operating expenses:
  Research and development 23,600 11,510 57,590 25,682
  Sales and marketing 23,385 5,610 52,137 12,062
  General and administrative 5,446 1,701 12,631 3,454
Goodwill and deferred stock compensation 2,272 802 6,977 2,597
  Charitable contribution - - 10,000 -
     
    Total operating expenses 54,703 19,623 139,335 43,795
     
 
Operating income/(loss) 76,207 (2,549) 102,636 (13,514)
 
Interest income, net 11,645 1,365 28,157 1,925
     
 
Income/(loss) before income taxes 87,852 (1,184) 130,793 (11,589)
 
Provision for income taxes 29,781 403 45,033 525
     
 
Net income/(loss)
$ 58,071
$ (1,587)
$ 85,760
$ (12,114)
     
 
Basic net income/(loss) per share
$ 0.19
$ (0.01)
$ 0.28
$ (0.08)
     
Shares used in computing basic
net income/(loss) per share
307,679 270,918 301,701 156,054
     
 
Diluted net income/(loss) per share
$ 0.17
$ (0.01)
$ 0.25
$ (0.08)
     
Shares used in computing diluted
net income/(loss) per share
349,721 270,918 347,309 156,054