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Juniper Networks Reports Preliminary Third Quarter 2010 Financial Results

  • Record Revenue of $1,012.4 million, up 23% year-over-year and up 3% sequentially
  • Operating Margin: 19.3% GAAP; 24.1% non-GAAP
  • GAAP Net Income Per Share: $0.25 diluted
  • Non-GAAP Net Income Per Share: $0.32 diluted, up 39% year-over-year and up 7% sequentially

Juniper Networks Reports Preliminary Third Quarter 2010 Financial Results

SUNNYVALE, Calif., October 19, 2010 - Juniper Networks (NYSE: JNPR) today reported preliminary financial results for the three months ended September 30, 2010.

Net revenues for the third quarter of 2010 increased 23% on a year-over-year basis, and increased 3% sequentially, to $1,012.4 million. The Company posted GAAP net income of $134.5 million, or $0.25 per diluted share, and non-GAAP net income of $171.5 million, or $0.32 per diluted share, for the third quarter of 2010. Non-GAAP net income per diluted share increased 39% compared to the third quarter of 2009 and increased 7% compared to last quarter. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Revenues by Market table below.

"Juniper's results reflect our ability to deliver on the promise of the New Network with cost effective solutions that scale to meet growing network demand," said Kevin Johnson, Juniper's chief executive officer. "We anticipate customer demand to remain healthy and are well-positioned to drive further gains as we enable the deployment of secure, scalable wireless networks and deliver solutions to the growing cloud computing market."

Juniper's operating margin for the third quarter of 2010 increased to 19.3% on a GAAP basis from 18.9% in the second quarter of 2010, and increased from 15.5% in the prior year third quarter. Non-GAAP operating margin for the third quarter of 2010 increased to 24.1% from 23.9% in the second quarter of 2010 and increased from 20.8% in the prior year third quarter.

Juniper generated net cash from operations for the third quarter of 2010 of $131.4 million, compared to net cash provided by operations of $221.3 million, in the second quarter of 2010, and $223.9 million in the same quarter of the prior year.

Capital expenditures, as well as depreciation and amortization expense during the third quarter of 2010, were $54.3 million and $39.6 million, respectively.

During the quarter, Juniper acquired SMobile Systems, Inc. for $69 million, a privately-held software company focused solely on smartphone and tablet security solutions for the enterprise, service provider, and consumer markets. With SMobile's product portfolio integrated with Junos® Pulse, the Company has extended its security focus.

"We continue to execute well against the operating principles that we set at the beginning of the year," said Robyn Denholm, Juniper's chief financial officer. "We exited this quarter with strong demand metrics and good momentum and we are on track to deliver 20% or higher revenue growth for the full year."

Juniper Networks will host a conference call web cast today, October 19, 2010 at 1:45 p.m. (Pacific Time), to be broadcast 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 December 14, 2010.

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. The company serves customers and partners worldwide, generating revenues exceeding $3 billion over the last year. Additional information can be found at 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, economic and market outlook, future financial and operating results, and overall future prospects are forward-looking statements that involve a number of uncertainties and risks. Actual results or events 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, resellers and other partners; 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; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation; and other factors listed in Juniper Networks' 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.

Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the discussion below.

Juniper Networks Reports Preliminary Third Quarter 2010 Financial Results