Juniper Refocuses Operations with Integrated Operating Plan

By Sean Michael Kerner | Apr 23, 2014 | Print this Page
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Juniper Networks is doubling down on its core competencies as it executes on its Integrated Operating Plan (IOP) to drive revenue growth. Juniper reported its first quarter fiscal 2014 earnings late Tuesday, showing areas of strength and weakness in its portfolio.

For the quarter, Juniper reported revenue of $1.17 billion, a 10 percent year-over-year gain. Net income came in at $110.6 million or $0.22 per share. Looking forward, Juniper provided second quarter guidance for revenue to range from $1.20 billion to $1.23 billion.

Looking at Juniper's core product categories, routing product revenue was $550 million, up seven percent year-over-year. Switching product revenue was $192 million, up 46 percent year-over-year. Total security product revenue was $134 million, down two percent year-over-year.

"I am pleased with our Q1 2014 results, which reflect continued momentum in the business," Shaygan Kheradpir, CEO of Juniper, said during his company's earnings call. "We saw continued demand from our service providers across Web 2.0, cable and carriers in all geographies, as well as from the Americas Enterprise customers, reflecting significant opportunity to capture share in the meaningful, high-growth segments of our Cloud Builder and High IQ networking across the globe."

Kheradpir became CEO of Juniper in November of 2013 and has since embarked on multiple strategic efforts to optimize and reorganize the business. One of those efforts is known as the the "One-Juniper" initiative.

"We have implemented a One-Juniper structure to create a more focused, connected, agile, and execution-oriented company centered around the fastest-growing opportunities in the marketplace," Kheradpir said.

The One-Juniper idea extends to both the operations and the development sides of Juniper.

"On the go-to-market side, we have evolved our model to one that is focused on targeted industry verticals," Kheradpir said. "This is the next stage in our evolution from a geography- and sector-based model."

In terms of research and development, Juniper now has a consolidated structure, intended to optimize engineering resources across product lines.

Rami Rahim, EVP of Juniper Development and Innovation (JDI), is a key executive helping Kheradpir transform Juniper. Rahim explained that Juniper is combining its three product marketing teams into an integrated business operations team focused on driving JDI execution.

In terms of areas of potential weakness, though Juniper's security revenues declined by two percent, Rahim emphasized that security is a core part of the business.

"We remain fully committed to our security business, focusing on what matters the most to our customers and where they are spending," Rahim said. "It’s important to note that security is a critical element of, and fully aligned with, our strategy and high-IQ networks and cloud."

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