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Juniper Networks Reports Preliminary First Quarter 2009 Financial Results

  • Q1 Revenue: $764.2 million (down 7% year over year)
  • Q1 Operating Margin: 10.6% GAAP; 16.4% non-GAAP
  • Q1 GAAP Net Loss Per Share: $(0.01) diluted (reflects a non-recurring, non-cash tax charge of $61.8 million or $0.12 per diluted share)
  • Q1 Non-GAAP Net Income Per Share: $0.17 diluted (down 37% year over year)

Juniper Networks Reports Preliminary First Quarter 2009 Financial Results

SUNNYVALE, Calif., April 23, 2009 - Juniper Networks, Inc. (NASDAQ: JNPR) today reported preliminary financial results for the three months ended March 31, 2009, that included revenue and operating margin consistent with preliminary results announced earlier this month.

Net revenues for the first quarter of 2009 declined 7% on a year-over-year basis to $764.2 million. The Company posted GAAP net loss of $(4.5) million, or $(0.01) per diluted share, and non-GAAP net income of $91.6 million, or $0.17 per diluted share. Net loss on a GAAP basis includes a non-recurring $61.8 million, or $0.12 per diluted share, non-cash charge related to the impairment of certain net deferred tax assets due to a change in California income tax law enacted during the first quarter of 2009. The non-GAAP EPS figure represents a decrease of 37% from the $0.27 per diluted share reported for the first quarter of 2008. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Revenues by Reportable Segment table below.

"Juniper has responded well to the challenging macroeconomic environment. Our focus remains on balancing short-term market realities with our commitment to creating long-term shareholder value. We're doing that by aggressively and thoughtfully managing operating expenses to ensure that we maintain strong levels of investment in our innovation and customer focused initiatives," stated Kevin Johnson, Juniper's Chief Executive Officer. "Our March quarter results indicate that we're executing on this plan, as operating margin was better than expected and new product introductions in our EX, SRX and TX lines are gaining good traction with customers."

Juniper's operating margin for the first quarter of 2009 declined to 10.6% on a GAAP basis from 17.3% in the same quarter a year ago. Non-GAAP operating margin for the first quarter of 2009 declined to 16.4% from 23.5% in the first quarter of 2008.

Juniper generated net cash from operations for the first quarter of 2009 of $163.9 million, compared to net cash provided by operations of $254.9 million for the same quarter of 2008.

Capital expenditures as well as depreciation and amortization expense during the first quarter of 2009 were $34.2 million and $37.5 million, respectively.

"During the March quarter, we took aggressive steps to reduce expenses," stated Robyn Denholm, Chief Financial Officer of Juniper Networks. "The reduction in revenue was a reflection of the current macro economic environment and I am pleased with how quickly the team was able to implement cost reductions and deliver on our operating margin and EPS targets. In addition, we posted strong cash flows from operations and maintained a strong balance sheet. We will continue to take the actions needed in order to align our cost-structure with anticipated revenue levels."

Juniper Networks will host a conference call web cast today, April 23, 2009 at 1:45 p.m. (Pacific Time), to be broadcasted live over the Internet at: https://www.juniper.net/company/investor/conferencecall.html.

To participate via telephone, in the U.S. the toll free dial-in number is 877-407-8033; outside of the U.S. dial 201-689-8033. Please call ten minutes prior to the scheduled conference call time. The webcast replay of the conference call will be archived on the Juniper Networks website until June 12, 2009.

About Juniper Networks

Juniper Networks is in the business of network innovation. From devices to data centers, from consumers to cloud providers, Juniper Networks delivers the software, silicon and systems that transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net).

Juniper Networks and Junos are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks and Junos logos are trademarks 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, 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; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; manufacturing and supply chain constraints; ability to establish and maintain relationships with distributors and resellers; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks products, services or the networking 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 Juniper Networks' most recent report on Form 10-K 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.