Juniper gains on Q2 results

By Susan Rush
from CED Broadband Direct, July 12, 2002

Networking gear maker Juniper Networks Inc. gave the Street something to smile about today, posting second-quarter results that beat analysts' expectations. The news gave Juniper shares a shot in the arm, which jumped more than 10 percent in early trading.

Juniper posted a profit of $6.2 million, or two cents a share, in the second quarter. In the year earlier period, the company reported a loss of $37.1 million, or 12 cents a share. Juniper plays second fiddle to No. 1 networking gear maker Cisco Systems Inc.

Weak demand from telecom carriers and network service providers dragged down Juniper's Q2 revenue. The company reported revenue of $117 million, a 42 percent drop from the $202.2 million posted in the second quarter 2001. Despite the significant drop in revenue, Juniper still managed to beat analysts' expectations. On average, analysts were expecting revenue of $109.6 million, according to Thomson Financial/First Call.

In the first quarter, Juniper posted a net loss of $46 million, or 14 cents a share, compared with net income of $58.6 million, or 17 cents a share, in the year-ago quarter.

In May, the IP infrastructure company said it would fork over $375 million in cash and 36.5 million shares to acquire Unisphere Networks from its parent Siemens. In November, Juniper snatched up Pacific Broadband to expand its core market strategy to provide equipment for telecom networks.

Looking ahead to the third quarter, Juniper expects to post revenue the range of $155 million to $160 million, with a pro forma loss of 2 cents a share. As expected, the company plans to cut 10 percent of its staff by July 22. The cuts will result in savings of $7 million in the third quarter, according to Chief Financial Officer Marcel Gani. The cuts are designed to integrate the Juniper and Unisphere staffs, and eliminate redundant positions, the company said.