RealTime IT News

Juniper's Revenue Hit Hard in First Quarter

Juniper Networks might be the second-largest equipment manufacturer and supplier in the U.S., but that couldn't save the company from an industry-wide fallout that saw its revenues drop 63 percent in the past year.

The company announced its dismal first quarter 2002 results at a press conference Thursday: $46 million in net losses, and pro forma (or before expenses) net income of a paltry $423,000. That's a far cry from its pro forma net income last year at this time, which topped $85 million.

Scott Kriens, Juniper chairman and chief executive officer, said 2002 would be a rebuilding year.

"The critical objective for Juniper Networks is to position ourselves for the industry recovery," he said. "The company benefits from increased customer reception, and remains financially healthy while committed to investment and innovation across multiple markets, which will drive our growth as the industry outlook improves."

Industry experts say Juniper's low revenue results stem from its dependence on the service provider industry, which has cut back spending on network equipment significantly since early 2001. Two of Juniper's biggest customers, WorldCom and Qwest, have been especially hard-hit the past year.

But despite the apparent slowdown in the market, Kriens has no intentions of bowing out of the carrier market.

"Juniper won't lose its focus of working with service providers and our position when (the industry) rebounds will be better than ever," he said. "Every day, there are more and more emails in my inbox."

Current financial woes haven't stopped the company from awarding a salary bonus, though. In a filing with the U.S. Securities and Exchange Commission Thursday, the company said Kriens would receive a bonus of $432,960. According to Dow Jones, company executives deferred stock options due to them for 2001 to take part in a new options plan starting May 28.

Juniper financial officials expect to spend $35 million in capital expenditures this year.