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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