Juniper Networks announce 59% rise in quarterly profits
24 January 2014 | Kavit Majithia
Juniper Networks has announced a 59% quarterly profit rise, declaring higher spending from US telecoms carriers as a major reason behind the favourable results.
Net income also rose to $151.8 million in Q4 ending December, rising from $95.7 a year earlier, with the company cashing in on increasing competition from US telecoms companies.
The equipment maker has forecasted that Q1 2014 adjusted profits will rise on revenue from $1.12 billion to $1.16 billion and is largely in line with analysts’ expectations.
The news has proved welcome for the much maligned equipments vendors, which have faced problems in recent years due to lower spend from carriers globally.
Juniper Networks were recently urged to cut costs, buy back shares and consider slimming its operations by shareholder Elliott Management.
The hedge fund advised Juniper to focus on its core business of making routers and switches for large carriers, including Verizon and A&T.