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Juniper Networks, Inc. Reports Q3'05 Financial Results

Q3'05 Net Revenue $546.4MM; GAAP EPS $0.14; Non-GAAP EPS $0.19

Complete Q3'05 Financial Results

Sunnyvale, CA - October 19, 2005 - Juniper Networks, Inc. (NASDAQ: JNPR) today reported its results for the quarter ended September 30, 2005.

Net revenues for the third quarter were $546.4 million, compared with $375.0 million for the same period last year, an increase of 46 percent.

GAAP net income for the third quarter was $84.1 million or $0.14 per share, compared with a GAAP net income of $48.8 million or $0.08 per share in the third quarter of 2004. Non-GAAP net income was $114.7 million or $0.19 per share, compared with non-GAAP net income of $73.5 million or $0.13 per share in the third quarter of 2004. See the table at the bottom of the Non-GAAP Condensed Consolidated Statements of Operations for a reconciliation of the non-GAAP net income to the GAAP net income.

Cash provided by operations was $144.9 million for the third quarter, compared to cash provided by operations of $105.2 million for the same period last year. Capital expenditures and depreciation during the third quarter were $18.2 million and $13.5 million, respectively.

"Once again we're very pleased with the results for the quarter, our momentum in the market, and the positive impact we're seeing as a result of our ongoing focus and innovation," commented Scott Kriens, chairman and CEO, Juniper Networks. "We continue to enjoy growing acceptance across our portfolio and with customers throughout the world."

  • During Q3 Juniper leveraged its innovation engine to drive the expansion of the portfolio. The new Secure Access 6000 SP, introduced this quarter, enables service providers to deliver additional revenue-generating network-based SSL VPN managed services. In addition, Juniper enhanced its Enterprise Infranet architecture with four new Secure SSL VPN hardware platforms and announced the availability of integrated IDP functionality on the ISG 1000/VPN appliance.
  • As service providers, such as KPN and Korea Telecom, transition to more advanced and profitable "triple play" offerings, they looked to Juniper to provide highly reliable, secure and scalable solutions for these demanding infrastructures.
  • The increasing demand for cross-portfolio solutions combining Juniper's best-in-class routing and security platforms was evident this quarter. Customers such as AvantGo, provider of rich personalized mobile websites to PDAs and smartphones, are deploying Juniper Networks routers, as well as its integrated security appliances, to deliver a secure and assured experience to their customers.
  • Juniper continued to experience market share momentum, having been recognized by Gartner as the leader in Broadband Aggregation and by Infonetics in SSL VPN and High-end Firewall/VPN. Juniper's Core Router platform holds more than a third of the total market share in its category, while the Multi-service Edge portfolio holds greater than 25%.

Juniper Networks will host a conference call web cast today, October 19, 2005 at 1:45 p.m. (Pacific Time), to be broadcasted live over the Internet https://www.juniper.net/company/investor/conferencecall.html. The conference call will be archived on the Juniper Networks website until November 19, 2005. A replay will be accessible by telephone after 3:00 p.m. Pacific Time through October 26th, 2005 by dialing 800-633-8284 (or 402-977-9140), reservation number, 21264032. The replays will be available 24 hours/day, including weekends.

About Juniper Networks, Inc.

Juniper Networks is the leader in enabling secure and assured communications over a single IP network. The company's purpose-built, high performance IP platforms enable customers to support many different services and applications at scale. Service providers, enterprises, governments and research and education institutions worldwide rely on Juniper Networks to deliver products for building networks that are tailored to the specific needs of their users, services and applications. Juniper Networks' portfolio of proven networking and security solutions supports the complex scale, security and performance requirements of the world's most demanding networks. Additional information can be found at www.juniper.net.

Juniper Networks, the Juniper Networks logo, NetScreen, NetScreen Technologies, the NetScreen logo, NetScreen-Global Pro, ScreenOS, and GigaScreen are registered trademarks of Juniper Networks, Inc. in the United States and other countries.

Statements in this release concerning Juniper Networks' business outlook, future financial and operating results, and overall future prospects are forward looking statements that involve a number of uncertainties and risks. Actual results could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: general economic conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending; the network capacity requirements of communication service providers; increases in competition; the timing of orders and their fulfillment; availability and cost of key parts and supplies; ability to establish and maintain relationships with distributors and resellers; variations in the expected mix of products sold; changes in customer mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of our products and services; rapid technological and market change; adoption of regulations or standards affecting our products, services or industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; currency fluctuations; litigation; and other factors listed in our most recent report on Form 10-Q filed with the Securities and Exchange Commission. All statements made in this press release are made only as of the date set forth at the beginning of this release. Juniper Networks undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release.

Complete Q3'05 Financial Results