Juniper Networks' financial fortunes continued to improve in the first quarter of 2021. The company today posted $1.07 billion in revenues, up 8% year over year and narrowly exceeding guidance.

While Juniper looks to put the pandemic — which the company blamed in previous quarters for depressed revenues — in the rearview mirror, it now faces a new challenge in the ongoing semiconductor shortage, which threatens to hobble the networking giant.

“There is a worldwide shortage of semiconductors impacting many industries. Similar to others, we are experiencing ongoing supply constraints which have resulted in extended lead times,” Juniper CFO Ken Miller said on Tuesday’s earnings call. “We have invested to strengthen our supply chain, and have increased inventory levels over the course of last year.”

As a result, Miller expressed confidence that, apart from extended lead times over the next few quarters, the semiconductor shortage would not negatively impact Juniper’s financials.

“At this point in time, we believe we will have access to sufficient semiconductor supply to meet our full year financial forecast,” he said.

Even with another challenge on the horizon, CEO Rami Rahim expressed confidence in Juniper’s future.

“Near term, visibility is strong, and given the momentum we're seeing, we now expect to grow our business four to 5% in 2021 on a full-year basis,” he said.

This growth will be driven by what he called “deliberate actions” to strengthen the company’s product portfolio. These include the acquisition of Mist in 2019, as well as 128 Technologies, NetRounds, and Apstra last year.

“We're seeing good early interest in Apstra, 128 Technologies, and NetRounds, which are not only strengthening our position in several attractive end markets, but also enhancing the success of the broader Juniper portfolio,” Rahim. “Our go to market organization is executing well, and the investments we’ve made over the last few years are paying off in the form of improved productivity and customer diversity.”

Rahim said these investments have positioned Juniper to grow as market conditions improve as well as capture share in new markets. They include the company’s investments in artificial intelligence and SD-WAN, as well as the adoption of 400 Gb/s routing and switching platforms in the cloud and service provider verticals.

While Juniper posted its second sequential quarter of year-over-year growth in Q1, revenues were overshadowed slightly by a narrow net loss of $31.1 million, a decrease of 252% year over year, and 201% sequentially.

Miller notes that the company’s revenues would likely have been higher if not for cash outflows associated with the acquisition of Apstra and the purchase of outstanding debt, which was refinanced in Q4. As a result, Q1 revenues were down 12% sequentially.

Q1 also marked a change in reporting for Juniper, rather than breaking out revenues for each product category, Juniper has consolidated its reporting into four core business groups.

The company’s Automated WAN and AI-Driven Enterprise business units saw the strongest annual growth in Q1, with the former up 18.4% to $386.4 million and the latter up 11% to $161.2 million.

Juniper's Hardware Maintenance and Professional Services group saw modest growth at 1.3% year over to $369.4 million, while the company’s Cloud-Driven Data Center unit declined 10% year over year to $157.4 million during the same period.

Looking to Q2, Juniper expects to grow revenues 5% to $1.14 billion.