Juniper Networks “confident” on long-term outlook
30 July 2020 | Melanie Mingas
The CEO and CFO of Juniper Networks (NYSE: JNPR) have expressed their confidence in the firm’s financial outlook as they reported “solid demand” during Q2.
Juniper recorded a net revenue decrease of 1% year-on-year, and an increase of 9% sequentially in its preliminary Q2 financial results.
The GAAP operating margin was 8.3%, an increase from 7.5% in the second quarter of 2019, and an increase from 3.9% in the first quarter of 2020. While the non-GAAP operating margin was 14.3%, a decrease from 15.9% in the second quarter of 2019, and an increase from 10.2% in the first quarter of 2020.
Net income was $61.2 million, an increase of 32% year-over-year, and an increase of 200% sequentially, resulting in diluted earnings per share of $0.18. Non-GAAP net income was $116.3 million, a decrease of 17% year-over-year, and an increase of 51% sequentially, resulting in non-GAAP diluted earnings per share of $0.35.
CEO, Rami Rahim (pictured), said: “We experienced solid demand during the June quarter, as our combination of technological differentiation and go- to-market execution drove a second consecutive quarter of positive order growth.
“While the global macro environment remains uncertain, the strategic importance of the global network has never been clearer and we remain confident regarding the long-term outlook for our business.”
Looking ahead to Q3, Juniper expects revenue to reach $1,125 million, “plus or minus $50 million”, while it expects its Non-GAAP gross margin to be approximately 59.5%.
Meanwhile, non-GAAP operating expenses are expected to reach $478 million – with a margin for error of $5 million – and the non-GAAP operating margin will be approximately 17% at the mid-point of revenue guidance.
Net income per share will be approximately $0.43, plus or minus $0.05. This assumes a share count of approximately 334 million.
“We delivered better than expected results during the June quarter, with both revenue and non-GAAP earnings per share exceeding the mid-point of our guidance,” said CFO, Ken Miller.
“We are entering Q3 with healthy backlog and are optimistic regarding our ability to navigate Covid-19 related supply chain challenges and deliver improved profitability during the upcoming quarter,” Miller added.
There's more on Q2 and H1 financial results in episode 14 of The Digital Digest.
19h | Alan Burkitt-Gray
19h | Natalie Bannerman
19h | Melanie Mingas
19h | Melanie Mingas