Juniper had a rough first quarter of 2016 due to product transitions, delays related to some of its large service provider customers, and some internal administrative issues, CEO Rami Rahim said on the company’s earnings call this afternoon.

Juniper warned Wall Street a couple of weeks ago that its first-quarter revenue would likely be $1.09 billion to $1.1 billion, compared to its previous guidance of $1.15 billion to $1.19 billion.

On today’s call, the company reported net revenues for the first quarter of 2016 of $1.09 billion, an increase of 3 percent year-over-year and a decrease of 17 percent sequentially.

Non-GAAP net income was $142.2 million, or 37 cents per diluted share, for the first quarter of 2016, an increase of 8 percent year-over-over and a decrease of 43 percent sequentially.

“We experienced unexpected delays in certain service provider deployments,” said Rahim, explaining the company was hit by timing delays from Tier 1 service providers in the United States and EMEA.

Of the three elements of Juniper’s business — security, routing, and switching — Rahim said security had a tough quarter, primarily because of several product transitions, including enhanced SRX products and its Sky Advanced Threat Prevention product.

He said campus-switching product transitions, particularly the EX Series, also hurt the company.

Finally, Juniper also blamed its lower revenues on its internal enterprise resource planning (ERP) software, which got overhauled and restarted on January 15, but caused delays in invoicing and payments. However, the company anticipates its days of sales outstanding (DSO) to return to the norm.

“We are looking at revenue increasing for the full-year 2016,” said Rahim. “We should have a good second half of the year, based on discussions with customers. Our new products in the market are going to start to ramp in the second half of the year.”

Firewall for Containers

Juniper cited new security product transitions as one of its trouble spots, but that may improve in future quarters.

Earlier this week, Juniper announced a new virtual firewall, the cSRX, built for container workloads. It provides a way to wrap security services around every workload and to scale up to high multitenancy.

“People like containers because they get more for their money on compute,” said Scott Miles, a senior director of cloud marketing with Juniper. “But containers are not inherently secure; they’re isolated but not secure.”

As a container firewall, the cSRX boots in less than a second, and it has a small memory footprint.

“Containers are typically in a high-volume, very elastic environment,” said Miles. “They need a firewall that can spin up fast and get torn down fast.”

Additionally, Juniper announced an increase in performance on its virtual firewall vSRX, which is expected to be capable of reaching 100 Gb/s by using multiple cores on a single CPU socket.