Switching key to Juniper Q3

Up 30% in solid quarter; company hints at upcoming products

Switching helped drive Juniper Network’s third quarter, which saw profits jump 34% on double digit revenue growth. Switching grew 30% highlighted by Juniper’s QFX and EX series products, specifically the newer QFX10000 and QFX5100.

Routing grew 13% from last year, driven by the MX and PTX. Juniper’s security business declined slightly from the third quarter of last year but appears to have stabilized – Q3 was the second consecutive quarter of year-over-year growth, excluding Junos Pulse, noted CEO Rami Rahim.

The service provider business, which accounts for 64% of Juniper’s revenue, was up 8.5%. Enterprise was up over 15% in the quarter.

Rahim also hinted at some upcoming products. A second version of the QFX10000 spine switches could be “into our customers hand before the end of the year,” he said.

Juniper is also participating in an ecosystem of partners to address IT convergence and hyperconvergence. Rahim says Juniper’s been working with about a half dozen partners in compute and storage to build converged stack offerings for verticals such as healthcare and retail.

“These are relatively new product offerings, but I actually I feel pretty confident in their ability to at least give us some access to that converged or hyper converged market,” he said in the Q3 conference call.

Rahim also addressed the expected loss of the Nokia channel partnership once the Alcatel-Lucent merger closes next year:

“We have enjoyed deep relationship with all of our customers around the world and where there is a need to make a change in our total market approach, we’re doing that and we’re doing it to a schedule that I think is working very well for us,” he said. “So no concerns on that.”

Only one of Juniper’s top 10 customers was an enterprise. Five were telcos, and four were cloud and cable providers. There were no 10% customers.

Juniper expects the beat to continue into Q4. The company expects healthy demand across all verticals and product lines to drive revenue 3% over Q3 and earnings-per-share to grow as much as 5%.

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