CEO Shaygan Kheradpir says Juniper‘s new operating plan is off to a strong start, using the company’s first-quarter results, announced yesterday, as evidence.
Sales to service providers — one group Juniper is emphasizing — contributed to what Kheradpir described as a robust quarter. “We are on our way,” Kheradpir said during yesterday’s conference call with analysts.
Specifics, such as the products involved or the size of Juniper’s involvement, aren’t available yet. “Suffice to say, it’s material,” Kheradpir said on the call.
Juniper wants these kinds of customers: big carriers and web 2.0 types that are going through massive changes in the network. As Kheradpir acknowledged on the call, Juniper has been allocating more of its technical people toward large accounts, hoping to catch those customers as they make the transition into software-defined networking (SDN).
No Word on More Cuts
On the call, executives wouldn’t talk about the possibility of further staff cuts, nor did they take the bait when analysts suggested product lines that could be trimmed, such as wireless LAN.
But some analysts believe Juniper will have layoffs beyond the 570 it’s already announced. Reuters quoted Michael Genovese of MKM Partners saying cuts of about 2 percent of the workforce wouldn’t be surprising as Juniper tries to reach its goal of $160 million per year in savings.
There wasn’t specific news to share about Contrail yesterday, either, but Juniper did want to show progress. Contrail is in “two to three dozen engagements and live trials,” said Rami Rahim, executive vice president of the newly formed Juniper development and Innovation organization (JDI), on the earnings call.
Running the Numbers
For its first quarter, which ended March 31, Juniper reported revenues of $1.17 billion — a 10 percent jump from the same quarter a year ago.
Net income was $111 million, or 22 cents per diluted share, but that included a benefit from the sale of equity investments and a restructuring charge related to those layoffs. Remove those factors, and Juniper’s non-GAAP net income was 29 cents per share, compared with 24 cents a year ago.
Juniper is predicting second-quarter revenues of $1.2 billion to $1.23 billion, compared with an analyst consensus of $1.21 billion according to Bloomberg. Second-quarter earnings should be 36 to 39 cents per share, Juniper says; analysts were predicting 36 cents.
Juniper shares were down 29 cents (1%) at $25.60 in after-hours trading last night.