Juniper Exits Junos Pulse Business with $250 Million Sale

Juniper CEO wants his company to stay focused on high-growth areas of the market, including switching and SDN.

By Sean Michael Kerner | Posted Jul 23, 2014
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Juniper Networks is continuing to sharpen its focus by divesting its Junos Pulse SSL VPN business. The news comes as the company announces its second quarter fiscal 2014 earnings.

For the quarter, Juniper reported revenue of $1.23 billion, a seven percent year-over-year gain. Net income was reported at $221.1 million. Looking forward, Juniper provided guidance for third quarter revenue in the range of $1.15 billion to $1.20 billion.

As part of Juniper's continuing efforts to focus the business, the Junos Pulse product portfolio is being sold to private equity firm Siris Capital for $250 million. The deal is expected to close in the third quarter of Juniper's fiscal year.

"We have focused our go-to-market and R&D resources on projects with highest potential for growth and we continue to leverage engineering across our routing, switching and security products via Junos, Silicon and end systems," Shaygan Kheradpir, CEO of Juniper, said during his company's earnings call. "Today we announced that sale of our Junos Pulse business, which is our SSL VPN solution for securing remote network access."

Junos Pulse was first announced by Juniper back in 2009. The effort expanded in 2010, evolving Junos Pulse into a smartphone mobile security initiative.

"We are making the pivot fully toward our stated high-growth strategy of Cloud-Builder and High-IQ networks, for which security is essential, and we are shifting our resources into security areas to commensurate with this strategy," Kheradpir said.

Juniper's overall security product business did not perform well during the quarter, either. Juniper's security product revenue for the quarter was reported at $112 million, an 11 percent year-over-year decline.

Other areas of Juniper's business are doing well, notably the switching product line, with revenue coming in at $200 million for a 25 percent year-over-year gain.

Juniper is also optimistic about its Software Defined Networking (SDN) initiatives and its Contrail controller.

"Many of our customers are going into production with Contrail as they look to automate and orchestrate the creation of highly scalable virtual networks," Kheradpir said. said. "In Q2, we have had two large public clouds go live with Contrail, one in APAC and the other CloudWatt, the largest cloud in France. "

Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist.

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