Juniper Networks Hit By Service Provider Slowdown
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Juniper Networks (NYSE:JNPR) didn't finish its fiscal 2011 year quite as well as executives had hoped. The company reported fourth quarter fiscal 2011 and full year results late Thursday, showing a decline at the end of the year. The overall full-year results were positive, however. Moving forward, Juniper CEO Kevin Johnson sees growth coming from new products set to ship during 2012.
For the fourth quarter of 2011, Juniper reported net revenues of $1.12 billion, for a year-over-year decline of six percent. Net Income for the quarter was reported at $96.2 million or $0.18 per share. For the full year, the picture is a bit better with revenues coming in at $4.45 billion which is a nine percent gain over 2010. Net income for the year was reported at $425.1 million or $0.79 per share.
Moving forward, Juniper provided first quarter fiscal 2012 guidance for revenues in the range of $960 million and $990 million.
"The December quarter was an atypical and unexpectedly weak finish to the 2011 fiscal year," Juniper CFO, Robyn Denholm said during the company's earnings call.
Denholm attributed the weak finish to two main factors: Juniper's largest service provider customers reduced their spending intentions within the quarter. The second factor is that while Juniper's enterprise business did well, the growth was driven primarily by Federal spending, with a softer finish than expected in other areas.