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Juniper Networks, Inc. Reports Q2'07 Financial Results

Q2'07 Net Revenue of $664.9M, up 17% from Q2'06; GAAP Diluted EPS $0.15; Non-GAAP Diluted EPS $0.20

Reported Q2'07 Financial Results 62 KB

SUNNYVALE, Calif., July 18, 2007 - Juniper Networks, Inc. (NASDAQ: JNPR) today reported its results for the three and six months ended June 30, 2007.

Net revenues for the second quarter of 2007 were $664.9 million, compared with $567.5 million for the second quarter of 2006, an increase of 17 percent. Net revenues for the six months ended June 30, 2007 were $1,291.9 million, compared with $1,134.2 million for the same period last year, an increase of 14 percent.

Net income on a GAAP basis for the second quarter of 2007 was $86.2 million or $0.15 per share, compared with a GAAP net loss of $1,206.5 million or $2.13 per share for the second quarter of 2006. Non-GAAP net income for the second quarter of 2007 was $116.0 million or $0.20 per share, compared with non-GAAP net income of $107.0 million or $0.18 per share for the second quarter of 2006. Net income on a GAAP basis for the six months ended June 30, 2007 was $152.8 million or $0.26 per share, compared with a GAAP net loss of $1,130.7 million, including $1,283.4 million impairment charges, or $2.00 per share for the same period last year. Non-GAAP net income for the six months ended June 30, 2007 was $228.3 million or $0.39 per share, compared with non-GAAP net income of $221.5 million or $0.37 per share for the same period in 2006. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Product Revenue by Operating Segment table below.

Net cash provided by operations for the second quarter of 2007 were $204.0 million, compared to cash provided by operations of $217.9 million for the second quarter of 2006. Net cash flows from operations for the six months ended June 30, 2007 were $356.6 million, compared to cash provided by operations of $356.5 million for the same period in 2006.

Capital expenditures and depreciation during the second quarter of 2007 were $42.7 million and $24.8 million, respectively. Capital expenditures and depreciation during the first six months of 2007 were $75.1 million and $47.0 million, respectively.

"We are pleased with our progress in the second quarter and first half of 2007, and we also remain fully aware of the ongoing work that lies ahead," said Scott Kriens, Juniper Networks' Chairman and CEO. "As we continue to focus intently on execution across the company, we're optimistic about the feedback we're receiving from customers and the opportunities we see in the marketplace for high-performance networking."

Q2 Highlights: High-Performance Network Infrastructure

For service providers, Juniper announced the newest member of the T-series family, the T1600 core router. Capable of delivering an industry-leading 1.6 Tbps of throughput in a single half-rack chassis, the service-aware T1600 core router will ease the transition to next-generation networks and enable service providers to accelerate the deployment of the experience-based services that subscribers expect today with the agility and service control to address future requirements. Fully supported by JUNOS, the T1600 is policy-enabled and managed through the Session Resource Control (SRC) product family to maximize service control and speed the deployment of multiplay applications. And as the industry's most energy efficient core router, the T1600 will consume 30 percent less power and require 30 percent less cooling than competitive platforms to deliver operational excellence and superior investment protection.

Juniper also announced the newest member of the market-leading E-series family, the E120 Broadband Services Router. The E120 mirrors the advanced feature set, high-performance and reliability of the E320 in a smaller, highly efficient form factor, enabling service providers to quickly and cost-effectively extend multiplay services to untapped markets served by smaller points of presence. In parallel Juniper announced the successful completion of interoperability and joint solution testing with an initial set of partners of several new advertising technologies that will enable IPTV service providers to, for the first time, gather real-time subscriber viewing statistics and deliver highly-targeted advertisements to pursue significant new revenue opportunities.

For enterprises, Juniper expanded its high-performance network infrastructure with new software releases for the Integrated Security Gateway (ISG) and Secure Services Gateway (SSG) firewall/VPNs and IDP products. For the first time, enterprises will have advanced granular visibility and control of business applications and users, enabling them to set and enforce security policies across the network and enhance application delivery and performance to improve user productivity and keep pace with escalating business requirements.

Juniper also announced two new J-series routers, the J2320 and J2350, two new SSG platforms, the SSG320M and SSG350M, as well as the latest versions of the NetScreen-Security Manager (NSM) Central Manager and NSMXpress network management appliances. With the addition of these new high-performance products, Juniper continues to demonstrate its commitment to providing best-in-class and highly integrated secure networking technologies for branch offices.

In addition, Juniper continued to strengthen its industry partnerships, working closely with Microsoft to provide customers and partners with open standards-based interoperability between Juniper Networks Unified Access Control (UAC) and Microsoft Network Access Protection (NAP). Once this work is completed, interoperability between Microsoft's NAP and the Juniper Networks UAC solution will provide enterprises with greater choice, flexibility and investment protection for network access control (NAC) deployments.

Fueling High-Performance Businesses

In the service provider market, Juniper realized strength in the core where the T-series and TX Matrix continued to gain momentum. The company announced the expansion of China Telecom Shanghai's next generation network with the TX matrix and T640 core routers to support the growth of IPTV and multiplay applications. Japan's National Institute for Informatics (NII), the country's largest and most advanced academic research institution, upgraded its nationwide SINET3 next generation network with Juniper Networks T-series routers to efficiently support high-bandwidth applications and ensure future scalability. In addition, Bayanant Al-oula, a new service provider based in the Kingdom of Saudi Arabia, selected Juniper Networks M- and T-series routers for the build-out of its new IP/MPLS-based next generation network to enable premium multiplay voice, video and IPTV services for its expanding base of residential and business subscribers.

In the enterprise, Juniper high-performance routing, security and application acceleration offerings continued to gain momentum. The Turkish Directorate-General of Security Forces deployed M- and J-series routers to create Pol-Net, an IP/MPLS-based network that will underpin police and security-related communications throughout Turkey. The National University of Singapore (NUS) deployed Juniper SSL VPN appliances to securely deliver online examinations to its students. Cooper-Standard Automotive, a leading manufacturer and OEM supplier to the automobile industry, deployed Juniper Networks SSL VPN appliances to enable secure high-performance global remote access to its corporate intranet from a variety of computer platforms including the newly released Windows Vista operating system. Carlsberg A/S, one of the world's best-known beer brands, deployed Juniper Networks DX data center application acceleration platforms and See's Candies enhanced the performance of their retail website through the deployment of Juniper Networks WX application acceleration platforms.

Juniper Networks will host a conference call web cast today, July 18, 2007 at 1:45 p.m. (Pacific Time), to be broadcasted live over the Internet https://www.juniper.net/company/investor/conferencecall.html. To participate via telephone, the dial-in number is 800-263-9153, or 212-676-5370 for international callers. Please call ten minutes prior to the scheduled conference call time. The conference call will be archived on the Juniper Networks website until September 14, 2007. A replay will be accessible by telephone on July 18, 2007 after 4:00 p.m. Pacific Time through July 25, 2007 by dialing 800-633-8284 (or 402-977-9140), reservation number, 21343325. The replays will be available 24 hours/day, including weekends.

About Juniper Networks, Inc.

Juniper Networks, Inc. is the leader in high-performance networking. Juniper offers a high-performance network infrastructure that creates a responsive and trusted environment for accelerating the deployment of services and applications over a single network. This fuels high-performance businesses. Additional information can be found at www.juniper.net.

Juniper Networks, the Juniper Networks logo and NetScreen are registered trademarks of Juniper Networks, Inc. in the United States and other countries. JUNOS is a trademark of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

Statements in this release concerning Juniper Networks' business outlook, future financial and operating results, future product availability 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.

Reported Q2'07 Financial Results 62 KB