Juniper Networks Profit Meets Views But Offers Bleak Guidance
Yet another legacy company hitting the skids. Aivars Lode avantce
Juniper Networks Profit Meets Views But Offers Bleak Guidance Networking Equipment Company Saw Weak Demand By Tess Stynes October 23, 2014 The networking equipment company also announced initiatives to reduce costs by an additional $100 million. The company didn’t provide specific details but said the cost-savings effort would focus on “careful management” of headcount, improved efficiencies and prioritization of revenue-generating projects. The Sunnyvale, Calif.-based company already has been focused on reducing costs. In April, Juniper said it reduced its global workforce by 6% and consolidated facilities in response to calls by two activist shareholders, Jana Partners LLC and Elliott Management Corp., that had pushed for Juniper to make large cuts to costs and enact programs toreturn capitalto shareholders.
Juniper Networks Inc. provided fourth-quarter guidance that missed analysts’ expectations though the networking equipment company posted a 4.5% increase in third-quarter earnings.
For the current quarter, Juniper forecast per-share earnings of 28 cents to 32 cents and revenue of $1.025 billion to $1.075 bllion. Analysts polled by Thomson Reuters expect per-share profit of 41 cents and revenue of $1.18 billion.
Earlier this month, the maker of infrastructure for telecommunications networks lowered its already downbeat third-quarter forecast, citing lower-than-expected demand from service providers--particularly in the U.S.
The company on Thursday reported that by market, service provider net revenue fell 5.9% to $741.5 million, while enterprise net revenue declined 3.2% to $384.4 million.
“We are disappointed in our third quarter revenue results” said Juniper Chief Executive Shaygan Kheradpir. “However, the underlying long-term demand trends in networking remain intact.”
Overall, Juniper Networks reported a profit of $103.6 million, or 23 cents a share, up from $99.1 million, or 19 cents a share, a year earlier. Excluding share-based compensation, restructuring-related charges and other items, earnings rose to 36 cents from 33 cents. Revenue decreased 5% to $1.13 billion.
Juniper expected per-share earnings of 34 cents to 36 cents and revenue of $1.11 billion to $1.12 billion.