About Juniper

Press Releases

Navigation
Juniper Networks, Inc. Reports Q4'03 and Year End 2003 Financial Results

Q4'03 Net Revenue $207.0M; GAAP EPS $0.04; Non-GAAP EPS $0.07; 2003 Net Revenue $701.4M; GAAP EPS $0.10; Non-GAAP EPS $0.15

Sunnyvale, CA - January 15, 2004 - Juniper Networks, Inc. (NASDAQ: JNPR) today reported its results for the fourth quarter and annual periods ending December 31, 2003.

Net revenues for the fourth quarter were $207.0 million, compared with $155.3 million for the same period last year, an increase of 33 percent.

GAAP net income for the fourth quarter was $14.7 million or $0.04 per share, compared with a GAAP net income of $8.5 million or $0.02 per share in the fourth quarter of 2002. Non-GAAP net income, which excludes restructuring expenses, the amortization of purchased intangibles and deferred compensation, and the loss on the partial retirement of the 4.75% Convertible Subordinated Notes was $27.7 million or $0.07 per share, compared with non-GAAP net income of $2.7 million or $0.01 per share in the fourth quarter of 2002.

Net revenues for the year ended December 31, 2003 were $701.4 million, compared with $546.5 million for year ended December 31, 2002, an increase of 28 percent.

GAAP net income for the year ended December 31, 2003 was $39.2 million or $0.10 per share, compared with a GAAP net loss of $119.7 million or $0.34 per share for the same period last year. Non-GAAP net income, which excludes restructuring expenses, in-process research and development expenses, integration expenses, the amortization of purchased intangibles and deferred compensation, an adjustment to the purchase price of an acquisition, the gain on the sale of investments, the write-down of investments and the gain (loss) on the partial retirement of the 4.75% Convertible Subordinated Notes was $59.0 million or $0.15 per share, compared with non-GAAP net loss of $4.8 million or $0.01 per share for the same period last year.

Cash provided by operations was $62.9 million for the fourth quarter, which brings cash provided by operations for the year ended December 31, 2003 to $178.6 million, compared to cash provided by operations of $2.4 million for the year ended December 31, 2002. Capital expenditures and depreciation during the fourth quarter were $5.3 million and $8.2 million respectively.

"The fourth quarter was exceptionally strong, and the value Juniper brings to market is clearly reflected in all aspects of our financial results," said Scott Kriens, chairman and CEO of Juniper Networks. "We are pleased with our progress throughout 2003, and encouraged by the confidence our customers have placed in Juniper as we look forward to 2004."

Juniper Networks will host a conference call web cast today, January 15, 2004 at 1:45 p.m. PT/4:45 p.m. ET at: https://www.juniper.net/company/investor/conferencecall.html. In addition, there will be an audio replay available at https://www.juniper.net/company/investor/conferencecall.html or you can call the replay at 800-633-8284 (or 402-977-9140) and enter the reservation number, 21180428, through January 22, 2004. The replays will be available 24 hours/day, including weekends.

About Juniper Networks, Inc.

Juniper Networks transforms the business of networking by converting a commodity - bandwidth - into a dependable, secure and highly valuable corporate asset. Founded in 1996 to meet the stringent demands of service providers, Juniper Networks is now relied upon by the world's leading network operators, government agencies, research and education institutions, and information-intensive enterprises as the foundation for uncompromising networks. The Infranet Initiative uses Juniper Networks MINT (Model for InfraNet Transformation) as its underlying framework. Juniper Networks is headquartered in Sunnyvale, California. Additional information can be found 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. ERX, ESP, E-series, Internet Processor, J-Protect, JUNOS, JUNOScript, JUNOSe, M5, M7i, M10, M10i, M20, M40, M40e, M160, M-series, NMC-RX, SDX, T320, T640, and T-series are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they ever materialize or prove incorrect, could cause the results of Juniper Networks to differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of earnings, revenues, margins, synergies or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing; and other risks that are described from time to time in Securities and Exchange Commission reports filed after Juniper Networks' Annual Report on Form 10-K for the fiscal year ended December 31, 2003. Juniper Networks assumes no obligation and does not intend to update these forward-looking statements.

Juniper Networks, Inc.
Condensed Consolidated Balance Sheets

(in thousands)
    December 31,
   
  2003   2002
     
ASSETS    
Current assets:    
  Cash and cash equivalents
$ 365,606
$ 194,435
  Short-term investments 215,906 384,036
  Accounts receivable, net 77,964 78,501
  Prepaid expenses and other current assets 31,333 23,957
     
    Total current assets 690,809 680,929
Property and equipment, net 244,491 266,962
Long-term investments 394,297 583,664
Restricted cash 30,837 -
Goodwill 983,397 987,661
Purchased intangible assets, net and other long-term assets 67,266 95,453
     
   Total Assets
$ 2,411,097
$ 2,614,669
     
 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
  Accounts payable
$ 61,237
$ 51,747
  Accrued compensation and related liabilities 42,650 25,122
  Accrued warranty 35,324 32,358
  Interest payable 1,968 13,197
  Other accrued liabilities 74,322 73,454
  Deferred revenue 75,312 46,146
     
    Total current liabilities 290,813 242,024
Convertible subordinated notes and other 157,841 942,114
Convertible senior notes 400,000 -
 
Commitments and contingencies
 
Stockholders’ equity:
  Common stock and additional paid-in capital 1,557,376 1,461,910
  Deferred stock compensation (1,228) (11,113)
  Accumulated other comprehensive income 4,414 17,052
  Retained earnings (accumulated deficit) 1,881 (37,318)
     
    Total stockholders’ equity 1,562,443 1,430,531
     
    Total liabilities and stockholders' equity
$ 2,411,097
$ 2,614,669
     
 


Juniper Networks, Inc.
Condensed Consolidated Statement of Operations

(in thousands, except per share amounts)


Three months ended
December 31,
Year ended
December 31,
2003 2002 2003 2002
Net revenues:
   Product
$ 179,104
$ 133,829
$ 602,455
$ 467,651
   Service 27,851 21,437 98,938 78,896
      Total net revenues 206,955 155,266 701,393 546,547
Cost of revenues:
   Product 54,753 49,521 200,621 179,721
   Service 15,876 13,571 56,728 50,387
      Total cost of revenues 70,629 63,092 257,349 230,108
Gross margin 136,326 92,174 444,044 316,439
Operating expenses:
   Research and development 44,695 44,281 176,104 161,891
   Sales and marketing 44,380 35,582 145,784 126,803
   General and administrative 7,170 6,502 28,462 34,263
   Restructuring and other - (2,601) 13,985 20,229
   In-process research and development - - - 83,479
   Integration - - - 2,507
(1)Amortization of purchased intangible
assets and deferred stock compensation
5,375 (3,336) 22,698 14,304
     Total operating expenses 101,620 80,428 387,033 443,476
     Operating income (loss) 34,706 11,746 57,011 (127,037)
Interest and other income 6,128 10,285 33,428 56,404
Interest and other expense (5,410) (12,079) (39,099) (55,605)
Gain on sale of investments - - 8,739 -
Write-down of investments - - - (50,451)
Gain (loss) on retirement of convertible subordinated notes, net (15,193) - (1,085) 62,855
Equity in net loss of joint venture - - - (1,316)
     Income (loss) before income taxes 20,231 9,952 58,994 (115,150)
Provision for income taxes 5,498 1,500 19,795 4,500
     Net income (loss)
$ 14,733
$ 8,452
$ 39,199
$ (119,650)
Net income (loss) per share:
     Basic
$ 0.04
$ 0.02
$ 0.10
$ (0.34)
     Diluted
$ 0.04
$ 0.02
$ 0.10
$ (0.34)
Shares used in computing net income (loss) per share:
     Basic
389,343
372,511
382,180
350,695
     Diluted 413,716 382,504 403,072 350,695
(1) Amortization of deferred stock compensation
relates to the following cost and expense categories by period:
   Cost of revenues
$ 15
$ 145
$ (33)
$ 1,072
   Research and development 511 (8,156) 1,925 (2,800)
   Sales and marketing 78 (784) 205 921
   General and administrative 17 157 (60) 1,215
      Total
$ 621
$ (8,638)
$ 2,037
$ 408


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

(in thousands, except per share amounts)

    Three months ended
December 31,
  Year ended
December 31,
     
  2003   2002 2003   2002
     
Net revenues:  
   Product
$ 179,104
 
$ 133,829
$ 602,455
 
$ 467,651
   Service 27,851 21,437 98,938 78,896
     
     Total net revenues 206,955 155,266 701,393 546,547
 
Cost of revenues:        
   Product 54,753 49,521 200,621 179,721
   Service 15,876 13,571 56,728 50,387
     
      Total cost of revenues 70,629 63,092 257,349 230,108
     
Gross margin 136,326 92,174 444,044 316,439
 
Operating expenses:  
   Research and development 44,695 44,281 176,104 161,891
   Sales and marketing 44,380 35,582 145,784 126,803
   General and administrative 7,170 6,502 28,462 34,263
     
     Total operating expenses 96,245 86,365 350,350 322,957
     
Operating income (loss) 40,081 5,809 93,694 (6,518)
Interest and other income 6,128 10,285 32,238 56,404
Interest and other expense (5,410) (12,079) (39,099) (55,605)
Equity in net loss of joint venture - - - (1,316)
     
Income (loss) before income taxes 40,799 4,015 86,833 (7,035)
Provision (benefit) for income taxes 13,056 1,285 27,787 (2,251)
     
 
Net income (loss)
$ 27,743
$ 2,730
$ 59,046
$ (4,784)
     
Net income (loss) per share:
   Basic
$ 0.07
$ 0.01
$ 0.15
$ (0.01)
     
   Diluted
$ 0.07
$ 0.01
$ 0.15
$ (0.01)
     
Shares used in computing net income (loss) per share:
   Basic
  389,343
  372,511
  382,180
  350,695
     
   Diluted
  413,716
  382,504
  403,072
  350,695
     
 
(1) The non-GAAP statements exclude the restructuring expenses, the in-process research and development expenses, the integration expenses, the impact of the amortization of purchased intangibles and deferred stock compensation, an adjustment to the purchase price of an acquisition, the gain from the sale of investments, the impairment write-down of investments and the gain (loss) on the retirement of convertible subordinated notes. See reconciliation to GAAP information below.


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

(in thousands)

    Three months ended
December 31,
  Year ended
December 31,
     
  2003   2002 2003   2002
     
   
Non-GAAP net income (loss)
$ 27,743
 
$ 2,730
$ 59,046
 
$ (4,784)
Restructuring and other - 2,601 (13,985) (20,229)
In-process research and development - - - (83,479)
Integration - - - (2,507)
Amortization of purchased intangible assets and deferred stock compensation (5,375) 3,336 (22,698) (14,304)
Acquisition related adjustment - - 1,190 -
Gain on sale of investments - - 8,739 -
Write-down of investments - - - (50,451)
Gain (loss) on retirement of convertible subordinated notes, net (15,193) - (1,085) 62,855
Income tax effect 7,558 (215) 7,992 (6,751)
     
GAAP net income (loss)
$ 14,733
$ 8,452
$ 39,199
$ (119,650)
     
 


Juniper Networks, Inc.
Condensed Consolidated Statements of Cash Flows

(in thousands)
    Year ended December 31,
   
  2003   2002
     
OPERATING ACTIVITIES:  
Net income (loss)
$ 39,199
$ (119,650)
Adjustments to reconcile net income (loss) to net cash from operating activities:    
  Depreciation 43,998 41,570
  Amortization of purchased intangibles, deferred stock compensation, debt costs and other non-cash transactions 26,042 21,477
  In-process research and development - 83,479
  Restructuring and other 3,621 1,701
  Gain on sale of investments (8,739) -
  Write-down of investments - 50,451
  Loss (gain) on retirement of convertible subordinated notes, net 1,085 (62,856)
  Tax benefit of employee stock options and sale of investments 10,813 -
  Changes in operating assets and liabilities:    
     Accounts receivable, net 537 39,362
     Prepaid expenses and other current assets (2,758) 11,488
     Other assets (334) 1,790
     Accounts payable 12,963 9,093
     Accrued compensation and related liabilities 17,528 (3,183)
     Interest payable (11,229) (2,921)
     Other accrued liabilities 16,662 (64,730)
     Deferred revenue 29,166 (4,661)
     
       Net cash provided by operating activities 178,554 2,410
     
INVESTING ACTIVITIES:    
Purchases of property and equipment, net (19,388) (36,127)
Purchases of available-for-sale investments (734,679) (977,926)
Maturities and sales of available-for-sale investments 1,085,929 1,095,541
Increase in restricted cash (30,837) -
Cash paid in connection with the Unisphere Networks acquisition, net of cash and cash equivalents acquired - (375,803)
Minority equity investments (900) (1,150)
     
      Net cash provided by (used in) investing activities 300,125 (295,465)
     
FINANCING ACTIVITIES:    
Proceeds from issuance of common stock 91,755 26,620
Proceeds from issuance of convertible senior notes 392,750 -
Retirement of convertible subordinated notes (792,013) (145,975)
     
      Net cash used in financing activities (307,508) (119,355)
     
      Net increase (decrease) in cash and cash equivalents 171,171 (412,410)
      Cash and cash equivalents at beginning of period 194,435 606,845
     
      Cash and cash equivalents at end of period
$ 365,606
$ 194,435