Its net revenues for the quarter were $1.25 billion, a decrease of 2 percent year-over-year and 4 percent sequentially. Non-GAAP operating margin was 23.5 percent, a decrease from 24.4 percent in the third quarter of 2016, and a decrease from 24.2 percent in the second quarter of 2017. Non-GAAP net income decreased 5 percent year-over-year and 4 percent sequentially, resulting in diluted earnings per share of $0.55.
Today, Juniper said it had “initiated a realignment of its workforce in Q4, as it continues to prioritize its investments in the most critical areas of its business.”
Questioned on the realignment, Ken Miller, Juniper’s chief financial officer, said “We continue to be laser-focused on cost discipline. With today’s workforce realignment, we’re making sure we are doing that prudently. You can count on us to continue to focus on earnings. Revenue headwinds hit us harder than expected. I do think we are managing the bottom line quite effectively.”
Juniper did not specify how many people would be laid off as part of today’s announcement. Rumors of layoffs at Juniper have circulated for months. According to the company’s 8-K filed today, Juniper’s headcount at the end of Q3 was 9,694, a decrease of 169 employees year-over-year.
Juniper did not immediately respond to an emailed request to quantify the latest round of layoffs. On today’s call Juniper CEO Rami Rahim said, “We have streamlined our organization; we are operating far more efficiently than we have in the past.”
Juniper attributed its disappointing third quarter revenue results to the “timing of switching deployments” within its cloud vertical.
One analyst asked Rahim what Juniper is doing in terms of software-defined wide area networking (SD-WAN) and why the company’s name does not come up that often in regard to the technology. Rahim said, “We’ve taken a deliberate strategy” focused on a scalable, multi-tenant, extensible architecture with security built-in. He said Juniper is focused on helping its service provider customers deliver SD-WAN.
Juniper unveiled its Cloud-Enabled Branch (CEB) more than a year ago and said it does much more than SD-WAN.
For its four quarter, ending Dec. 31, 2017, Juniper gave guidance predicting revenues of about $1.23 billion, plus or minus $30 million. And it projects non-GAAP net income per share will be about $0.52, plus or minus $0.03.
The company’s stock was down about 6.54 percent in after hours trading today.