Juniper revenue, earnings fall

Ethernet router and switch maker hits Q2 targets but remains challenged

Juniper Networks posted a 34% drop in earnings on an 11% dip in revenue for its second quarter ended June 30.

Net revenues increased 3% to $786.4 million from $764.2 million reported in the first quarter of 2009, ahead of Juniper's guidance of flat growth. The company recorded net income, minus expenses, charges and other items, of $103.8 million, an increase of 12% quarter-over-quarter and a decrease of 34% from the second quarter of 2008.

IBM strikes OEM deal to resell Juniper Ethernet switches, routers

Adding expenses, charges and other items – including a non-recurring income tax charge of $52.1 million – second quarter income dropped 88% to $14.8 million.

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Juniper Networks posted a 34% drop in earnings on an 11% dip in revenue for its second quarter ended June 30.

Net revenues increased 3% to $786.4 million from $764.2 million reported in the first quarter of 2009, ahead of Juniper's guidance of flat growth. The company recorded net income, minus expenses, charges and other items, of $103.8 million, an increase of 12% quarter-over-quarter and a decrease of 34% from the second quarter of 2008.

IBM strikes OEM deal to resell Juniper Ethernet switches, routers

Adding expenses, charges and other items – including a non-recurring income tax charge of $52.1 million – second quarter income dropped 88% to $14.8 million.

"We continue to take a disciplined approach to controlling operating expenses as we navigate this challenging economic period," said CEO Kevin Johnson in a statement. "With service provider sales relatively flat quarter-over-quarter, our sequential revenue increase was supported by double digit quarter-over-quarter growth in the enterprise market."

Revenue in Juniper's Infrastructure products group – comprised mostly of service provider routers -- declined 13 % from the second quarter of last year. Sales in the company's Service Layer Technology group – comprised of security appliances, WAN optimization and enterprise technologies – dipped 2%.

"Stability continues to improve," Johnson said in a conference call with Wall Street analysts. "And there are some areas where visibility to projects is improved, yet our ability to predict the timing of orders still remains somewhat limited. We will continue to remain cautious in our operating approach."

Juniper said it expects a flat third quarter but offered a wide revenue range -- $717 million to $805 million. Earnings are expected to range from $101.3 million to $112 million.

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