Juniper Networks Q4 Revenues Decline
Juniper Networks (NYSE:JNPR) didn't finish its fiscal 2011 year quite as well as executives had hoped. The company reported fourth quarter fiscal 2011 and full year results late Thursday, showing a decline at the end of the year. The overall full-year results were positive, however. Moving forward, Juniper CEO Kevin Johnson sees growth coming from new products set to ship during 2012.
For the fourth quarter of 2011, Juniper reported net revenues of $1.12 billion, for a year-over-year decline of six percent. Net Income for the quarter was reported at $96.2 million or $0.18 per share. For the full year, the picture is a bit better with revenues coming in at $4.45 billion which is a nine percent gain over 2010. Net income for the year was reported at $425.1 million or $0.79 per share.
Moving forward, Juniper provided first quarter fiscal 2012 guidance for revenues in the range of $960 million and $990 million.
"The December quarter was an atypical and unexpectedly weak finish to the 2011 fiscal year," Juniper CFO, Robyn Denholm said during the company's earnings call.
Denholm attributed the weak finish to two main factors: Juniper's largest service provider customers reduced their spending intentions within the quarter. The second factor is that while Juniper's enterprise business did well, the growth was driven primarily by Federal spending, with a softer finish than expected in other areas.
Juniper CEO Kevin Johnson also attributed macro-economic challenges as being part of the decline.
"Our Q4 results felt the effect of increased macro volatility that escalated over the second half of the year due to the sovereign debt concerns in Europe and slowing recoveries in APAC countries as well as the U.S," Johnson said.
Even with the macro-economic concerns, Juniper is pushing forward with its planned innovation roadmap with includes new product releases and availability in 2012. One of the big new items that is set to ramp up in 2012 is Juniper's flagship T4000 core router platform which can deliver 4 terabits per second of routing capacity in a half-rack chassis. The T4000 was first announced in November of 2010 as the successor to Juniper's widely deployed T1600 platform. The T4000 competes against Cisco's CRS-3.
"There are some implications as we release new innovation into the market," Johnson said. "For example, we've just started shipping the T4000 as planned, and this may have slowed T-series orders over the last six months as customers awaited the new product."
The other big release for 2012 is the Juniper PTX Converged Supercore switch that was first announced in March of 2011. Johnson explained that the PTX collapses multiple layers of the network, though it doesn't replace the core.
"So I don't anticipate that the PTX is a product line the cannibalizes the core," Johnson said. "What it does is it now extends the core and allows that core network to be able to collapse multiple networks into a single point with the PTX."