About Juniper

Press Releases

Navigation
Juniper Networks, Inc. Reports Q1'03 Financial Results

Net Revenue $157.2M; GAAP EPS $0.01; Non-GAAP EPS $0.02

Sunnyvale, CA - April 10, 2003 - Juniper Networks, Inc. (NASDAQ: JNPR) today reported its first quarter results for the period ending March 31, 2003.

Net revenues for the first quarter were $157.2 million, compared with $122.2 million for the same period last year, an increase of 29%.

GAAP net income for the first quarter was $3.7 million or $0.01 per share, compared with a net loss of $46.0 million or $0.14 per share in the first quarter of 2002. Non-GAAP net income, which excludes amortization of purchased intangibles and deferred compensation and a gain on the sale of investments, was $6.3 million or $0.02 per share, compared with non-GAAP net income of $0.4 million or $0.00 per share in the first quarter of 2002.

Cash provided by operations was $12.4 million for the first quarter, compared to cash provided by operations of $12.0 million in the first quarter of 2002.

“The first quarter was solid,” said Scott Kriens, Chairman and CEO of Juniper Networks. “We are in a unique position to help our customers transform their business of networking.”

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.

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 most recent Form 10K.

JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
    March 31,
2003
  December 31,
2002
     
ASSETS (unaudited) (A)
Current assets:    
  Cash and cash equivalents
$ 250,342
$ 194,435
  Short-term investments 305,687 384,036
  Accounts receivable, net 84,508 78,501
  Prepaid expenses and other current assets 26,331 23,957
     
    Total current assets 666,868 680,929
Property and equipment, net 259,317 266,962
Long-term investments 625,796 583,664
Goodwill 987,661 987,661
Purchased intangible assets, net and other long-term assets 88,188 95,453
     
   Total Assets
$ 2,627,830
$ 2,614,669
     
 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
  Accounts payable
$ 61,729
$ 51,747
  Accrued warranty 31,948 32,358
  Other accrued liabilities 94,705 111,773
  Deferred revenue 51,558 46,146
     
    Total current liabilities 239,940 242,024
Convertible subordinated notes 942,114 942,114
 
Stockholders’ equity:
  Common stock and additional paid-in capital 1,472,275 1,461,910
  Deferred stock compensation (8,195) (11,113)
  Accumulated other comprehensive income 15,331 17,052
  Accumulated deficit (33,635) (37,318)
     
    Total stockholders’ equity 1,445,776 1,430,531
     
    Total Liabilities and Stockholders' Equity
$ 2,627,830
$ 2,614,669
     
 
(A) The balance sheet at December 31, 2002 has been derived from the audited consolidated financial statements at that date.


Juniper Networks, Inc.
Condensed Consolidated Statement of Operations

(In thousands, except per share amounts)
(unaudited)
    Three Months Ended March 31,
  2003   2002
     
   
Net revenues:  
  Product
$ 135,174
$ 104,546
  Service 22,033 17,673
     
    Total net revenues 157,207 122,219
 
Cost of revenues    
  Product 48,371 39,711
  Service 12,980 10,285
     
    Total cost of revenues 61,351 49,996
     
Gross profit 95,856 72,223
Operating expenses:  
  Research and development 43,470 35,069
  Sales and marketing 32,984 27,578
  General and administrative 7,472 9,549
  Amortization of purchased intangible assets and deferred stock compensation 7,522 15,275
     
    Total operating expenses 91,448 87,471
     
Operating income (loss) 4,408 (15,248)
Interest income 9,252 16,752
Interest expense (11,949) (15,132)
Gain on sale of investments 4,352 -
Write-down of investments - (30,600)
Equity in net loss of joint venture - (1,025)
     
Income (loss) before income taxes 6,063 (45,253)
Provision for income taxes 2,380 750
     
Net income (loss)
$ 3,683
$ (46,003)
     
 
Net income (loss) per share:
  Basic
$ 0.01
$ (0.14)
     
  Diluted
$ 0.01
$ (0.14)
     
Shares used in computing net income (loss) per share:    
  Basic 375,549 329,367
     
  Diluted 390,947 329,367
     
 


Juniper Networks, Inc.
Non-GAAP Condensed Consolidated Statement of Operations (1)

(In thousands, except per share amounts)
(unaudited)
    Three Months Ended March 31,
  2003   2002
     
   
Net revenues:  
  Product
$ 135,174
$ 104,546
  Service 22,033 17,673
     
    Total net revenues 157,207 122,219
 
Cost of revenues    
  Product 48,371 39,711
  Service 12,980 10,285
     
    Total cost of revenues 61,351 49,996
     
Gross profit 95,856 72,223
Operating expenses:
  Research and development 43,470 35,069
  Sales and marketing 32,984 27,578
  General and administrative 7,472 9,549
     
    Total operating expenses 83,926 72,196
     
Operating income 11,930 27
Interest income 9,252 16,752
Interest expense (11,949) (15,132)
Equity in net loss of joint venture - (1,025)
     
Income before income taxes 9,233 622
Provision for income taxes 2,955 199
     
Net income
$ 6,278
$ 423
     
 
Net income per share:
  Basic
$ 0.02
$ 0.00
     
  Diluted
$ 0.02
$ 0.00
     
Shares used in computing net income per share:    
  Basic 375,549 329,367
     
  Diluted 390,947 342,831
     
 
(1) The non-GAAP statements exclude the impact of the amortization of purchased intangibles and deferred stock compensation, the gain from the sale of investments and the impairment write-down of investments in all applicable periods. See reconciliation to GAAP information on page 5.


Juniper Networks, Inc.
Reconciliation of Non-GAAP to GAAP Condensed Consolidated Statements of Operations

(in thousands)
    Three Months Ended March 31,
  2003   2002
     
   
Non-GAAP net income
$ 6,278
$ 423
Amortization of purchased intangible assets and deferred stock compensation (7,522) (15,275)
Gain on sale of investments 4,352 -
Write-down of investments - (30,600)
 Income tax effect 575 (551)
     
Net income
$ 3,683
$ (46,003)
     
 


Juniper Networks, Inc.
Condensed Consolidated Statements of Cash Flows

(in thousands)
(unaudited)
    Three Months Ended March 31,
  2003   2002
     
OPERATING ACTIVITIES:  
Net income (loss)
$ 3,683
$ (46,003)
Adjustments to reconcile net income (loss) to net cash from operating activities:    
  Depreciation 12,867 8,171
  Amortization of purchased intangibles and deferred stock compensation 7,522 16,229
  Amortization of debt related charges 778 -
  Gain on sale of investments (4,352) -
  Write-down of investments - 30,600
  Changes in operating assets and liabilities:    
    Accounts receivable (6,007) 37,608
    Prepaid expenses, other current assets and other long-term assets (5) 3,717
    Accounts payable 9,982 (23,290)
    Accrued warranty (410) (864)
    Other accrued liabilities (17,068) (7,970)
    Deferred revenue 5,412 (6,214)
     
      Net cash provided by operating activities 12,402 11,984
     
INVESTING ACTIVITIES:    
Purchases of property and equipment, net (5,222) (5,776)
Purchases of available-for-sale investments (163,723) (331,840)
Maturities and sales of available-for-sale investments 201,386 417,566
Minority equity investments - (1,000)
     
      Net cash provided by investing activities 32,441 78,950
     
FINANCING ACTIVITIES:    
Proceeds from issuance of common stock 11,064 7,405
     
      Net cash provided by financing activities 11,064 7,405
     
      Net increase in cash and cash equivalents 55,907 98,339
      Cash and cash equivalents at beginning of period 194,435 606,845
     
      Cash and cash equivalents at end of period
$ 250,342
$ 705,184
     
     
Supplemental Disclosures of Cash Flow Information:    
Cash paid for interest
$ 22,375
$ 27,313