Sunnyvale, CA - June 8, 2001 - Juniper Networks, Inc. (Nasdaq: JNPR), a leading provider of next-generation IP infrastructure systems, today presented a revised outlook for its second quarter results for the period which will end June 30, 2001.
Juniper Networks expects revenue for the second quarter of 2001 to be approximately $200-$210 million, down from original guidance of $300-$330 million. These forecasted results represent an increase of almost 80% from the same period last year. We expect pro forma earnings per share to be approximately $0.08-$0.09.
Our revised expectations are a result of a challenging service provider and global carrier business environment, brought about by a capacity absorption cycle taking place currently throughout the industry. The underlying demand for bandwidth, Internet access, and IP services, continues to increase and customers continue to prefer Juniper Networks M-series infrastructure systems with the reliability and scalability of JUNOS software and the uncompromised multi-service packet-processing performance of the Internet Processor II ASIC.
Given the current market and service provider industry conditions, Juniper Networks is implementing cost cutting measures, reducing our headcount by approximately 8-9% and taking a one-time charge of up to $45 million, which includes costs associated with the reduced headcount and a revaluation of our investment portfolio to better reflect the reduced valuation in our private and public investments. These measures will not compromise Juniper Networks innovation, market creation, or product development.
"Obviously we would prefer to be in markets that grow without hesitation or pause," said Scott Kriens, Chairman and CEO of Juniper Networks. "However, we remain committed to and capable of running the business profitably and successfully under all conditions, including this current period of absorption. Juniper Networks has proven its ability to focus and execute since inception and this will remain our priority independent of business cycles."
Conference Call information
Juniper Networks will have a conference call and Web cast today, June 8, 2001, beginning at 5:30 AM Pacific Time. The call can be accessed by dialing 888-740-8120 (International callers can dial 212-993-0249) or at www.juniper.net/conferencecall/.
There will be an audio replay available on Juniper.net at www.juniper.net/conferencecall/. In addition, you can call the replay at 800-633-8284 (or 858-812-6440) and enter the reservation number 19099635, through June 15, 2001. The replay will be available 24 hours/day, including weekends.
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 https://www.juniper.net.
Juniper Networks is a registered trademark of Juniper Networks, Inc. Internet Processor II and JUNOS 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.
This announcement contains forward-looking statements regarding our estimates of revenue and earnings per share for the second quarter, which will end on June 30, 2001. Actual results could differ materially from the forward-looking statements in this release as a result of certain factors, including the amount of sales completed during the remainder of the quarter; any accounting adjustments made during the close of the Company's quarter and unforeseen expenses that the Company may incur during the remainder of the quarter; the inability to identify expenses which can be eliminated; business and economic conditions and growth in the networking industry in various geographic regions; global economic conditions; service provider capital spending in the data or IP segments; variations in customer demand for products and services; the timing of orders and manufacturing lead times; changes in customer order patterns; mix of products sold; managing expenses; increased competition in the networking industry; and those set forth in the risk factors described in the Company's SEC filings, including our most recent Forms 10K and 10Q. All forward-looking statements included in this document are based upon information available to Juniper Networks as of the date hereof, and Juniper Networks assumes no obligation to update any such forward-looking statements.