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.