 Optical NetworkingNetwork World's Optical Networking Newsletter, 07/23/07Enterprise business improves in Juniper's Q2By Jim DuffyJuniper Networks’ enterprise business showed signs of life in the second quarter, as the company posted sales that exceeded guidance and earnings in line with forecasts. Sales of Juniper’s Service Layer Technology (SLT) products – made up mostly of enterprise security, WAN optimization and application acceleration gear – were $139 million in the quarter, compared to $125 million in the first quarter and $116 million in the second quarter of 2006. SLT sales exceeded at least one analyst’s expectations. “SLT sales were $6 million higher than our estimates,” stated UBS Warburg analyst Nikos Theodosopoulos in a report on the quarter.
“We believe signs of traction and product acceptance in the security/WAN optimization markets have started to surface. And with the new COO pushing for tighter execution, it’s likely that SLT continues to improve its performance and end the year at least breakeven operating margins.” Theodosopoulos stated previously that he believed Juniper should reconsider its enterprise strategy if SLT failed to turn a profit by year-end. Juniper invested $5 billion in enterprise and SLT over three years but the business has yet to reach profitability. Juniper six months ago brought COO Stephen Elop on board from Adobe Systems to help streamline the company’s execution. Another analyst, however, says Juniper still has its enterprise work cut out for it. “The key question involves Juniper's ability to deliver in its enterprise business on a consistent basis to support its margin expansion,” states CIBC World Markets analyst Ittai Kidron in a report on the quarter. “While signs suggest Juniper's enterprise business is now on track, we don't feel it's out of the woods just yet. The 4Q07 return to profitability milestone is key.” For the quarter overall, Juniper recorded net revenue of $664.9 million, an increase of 17% over the second quarter of 2006. Net income, excluding expenses and other items, was $116.0 million, compared with net income of $107.0 million for the same period a year ago. Net revenue for the six months ended June 30, was $1.3 billion, a 14% hike from the same period in 2006. Net income, excluding expenses, for the six-month period was $228.3 million, compared with $221.5 million for the same period in 2006.
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| Contact the author: Jim Duffy is managing editor of Network World's service provider equipment coverage. He has 18 years of high-tech reporting experience, including over 12 years at Network World. Previously, he was senior editor at Computer Systems News and associate editor/reporter at Electronic News and MIS Week. He can be reached at jduffy@nww.com. ARCHIVEArchive of the Optical Networking Newsletter. BONUS FEATUREIT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE International subscribers, click here. SUBSCRIPTION SERVICESTo subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007 |
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