Update: Juniper meets first-quarter estimates, warns for next quarter

Juniper Networks Thursday posted first quarter 2001 results in line with analyst expectations, but warned that second quarter and full-year results could disappoint.

For the period ending March 31, Juniper's net revenue was $332.1 million, compared with $63.9 million for the same period last year, an increase of 420%. Pro forma net income was $85.4 million, or 25 cents per share, compared with pro forma net income of $10.5 million, or 3 cents per share, for the first quarter of 2000.

Juniper's results met consensus analyst estimates of earnings of 25 cents per share on revenue of $336 million. The company sold 1,704 units and 19,385 ports this quarter, Juniper Chairman and CEO Scott Kriens says.

Also, large enterprises building internal Internet service provisioning networks for employees, business partners and customers are adopting Juniper's M5 and M10 units, Kriens says.

Actual net income for the first quarter, which includes amortization of goodwill and other purchased intangibles of $12.3 million, and amortization of deferred compensation of $24.3 million, was $58.6 million, or 17 cents per share. Actual net income for the first quarter of 2000 was $8.1 million, or 2 cents per share.

"We are particularly pleased to report the continued growth and execution of Juniper Networks, especially given the challenges of today's economy," Kriens said in a statement. "These results reflect not only the strength of the company, our products, and our global customer base, but also our continued focus on the financial fundamentals."

Ericsson, a reseller of Juniper's routers, accounted for greater than 10% of the company's sales for the first quarter. WorldCom, on the other hand, dropped from the ranks of a "10%" revenue contributor to Juniper, due to reduced spending.

Other than Ericsson, no other network operator or users accounted for 10% of Juniper's revenue in the quarter, Kriens says.

Juniper said, however, that due to limited visibility, second quarter results could be flat compared to the first quarter. Analysts expect Juniper to earn a penny more per share on revenue of $381 million.

Also, Juniper is forecasting revenue growth of 85% to 100% over fiscal 2000, and earnings of 90 cents to $1.00 per share. Analysts had expected revenue to grow 137% and earnings to come in at $1.05 per share.

But Juniper is "nimble," Kriens says, and "well positioned to prosper during these times." Investors are listening, as Juniper shares were up almost 5.5 points at midday today, benefiting from an upgrade by investment firm CIBC World Markets.

Contact Edge Managing Editor Jim Duffy

Other recent articles by Duffy