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Juniper Networks Reports Preliminary Second Quarter 2019 Financial Results
 
Dubai - UAE, July 28, 2019 - Juniper Networks (NYSE: JNPR), a leader in secure, AI-driven networks, today reported preliminary financial results for the three months ended June 30, 2019 and provided its outlook for the three months ending September 30, 2019.
 
Second Quarter 2019 Financial Performance
 
Net revenues were $1,102.5 million, a decrease of 8% year-over-year, and an increase of 10% sequentially.
 
GAAP operating margin was 7.5%, a decrease from 13.3% in the second quarter of 2018, and an increase from 4.3% in the first quarter of 2019.
 
Non-GAAP operating margin was 15.8%, a decrease from 18.5% in the second quarter of 2018, and an increase from 11.2% in the first quarter of 2019.
 
GAAP net income was $46.2 million, a decrease of 60% year-over-year, and an increase of 49% sequentially, resulting in diluted earnings per share of $0.13.
 
Non-GAAP net income was $139.5 million, a decrease of 18% year-over-year, and an increase of 50% sequentially, resulting in non-GAAP diluted earnings per share of $0.40.
 
“We experienced encouraging trends during the June quarter, as we saw sequential revenue growth across industry verticals and technologies,” said Rami Rahim, chief executive officer, Juniper Networks. “We are making progress with our sales transformation efforts which, along with our strong pipeline of opportunities, is providing confidence in our ability to not only deliver sequential revenue growth through the remainder of the year, but also a return to year-over-year growth during the December quarter.”
 
“We executed well during the June quarter, achieving our revenue guidance and exceeding the midpoint of our non-GAAP earnings per share outlook, despite incremental China tariffs and a higher  non-GAAP tax rate,” said Ken Miller, chief financial officer, Juniper Networks. “We have made substantial progress mitigating the impact of the incremental China tariffs and will continue to further optimize our supply chain. These factors, along with sequential second half revenue growth; and strong cost management should enable us to deliver improved profitability in the back half of 2019.”
 
Balance Sheet and Other Financial Results
 
Total cash, cash equivalents, and investments as of June 30, 2019 were $2,875.0 million, compared to $3,530.5 million as of June 30, 2018, and $3,502.7 million as of March 31, 2019.
 
Net cash flows provided by operations for the second quarter of 2019 was $88.8 million, compared to $170.3 million in the second quarter of 2018, and $159.4 million in the first quarter of 2019.
 
Days sales outstanding in accounts receivable was 54 days in the second quarter of 2019, compared to 52 days in the second quarter of 2018, and 58 days in the first quarter of 2019.
 
Capital expenditures were $27.3 million, and depreciation and amortization expense were $56.4 million during the second quarter of 2019.
 
Juniper’s Board of Directors has declared a quarterly cash dividend of $0.19 per share to be paid on September 25, 2019 to shareholders of record as of the close of business on September 4, 2019.
 
Outlook
 
These metrics are provided on a non-GAAP basis, except for revenue and share count. Non-GAAP earnings per share is on a fully diluted basis. The outlook assumes that the exchange rate of the U.S. dollar to other currencies will remain relatively stable at current levels.
 
Our second-half revenue outlook reiterates the commentary we stated previously, which reflects our expectations on above normal seasonal trends and a return to year-over-year growth in the fourth quarter due to our current pipeline of opportunities as well as the expected positive impact from our go-to-market transformation activities.
 
We remain confident in the long-term financial model we outlined at our Investor Day in November last year.
Full-year non-GAAP gross margin is expected to continue to be pressured by China tariffs, despite our ongoing mitigation efforts. The increase in tariffs from 10% to 25% is expected to have a 30-50 basis point impact on full-year non-GAAP gross margin.
 
We plan to manage our operating expenses prudently; however, we continue to expect non-GAAP operating expenses on a full-year basis to be flat to slightly up versus 2018, inclusive of Mist Systems. In the second quarter of 2019, we adopted a full-year projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across reporting periods.
 
For the remainder of 2019, we expect a non-GAAP tax rate of approximately 19.5%.
 
Due to the increased China tariffs and a higher non-GAAP tax rate, we now expect our full-year non-GAAP earnings per share to be at the low-end of the previously stated range of $1.75 +/- $0.05.
 
Our guidance for the quarter ending September 30, 2019 is as follows:
  • Revenue will be approximately $1,145 million, plus or minus $30 million.
  • Non-GAAP gross margin will be approximately 60.0%, plus or minus 1%.
  • Non-GAAP operating expenses will be approximately $488 million, plus or minus $5 million.
  • Non-GAAP operating margin will be approximately 17.5% at the midpoint of revenue guidance.
  • Non-GAAP net income per share will be approximately $0.46, plus or minus $0.03. This assumes a share count of approximately 348 million.
All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring benefits or charges, impairment charges, strategic partnership-related charges, legal reserve and settlement charges or benefits, supplier component remediation charges and recoveries, gain or loss on equity investments, retroactive impact of certain tax settlements, significant effects of tax legislation and judicial or administrative interpretation of tax regulations, including the impact of income tax reform, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of further changes to previously announced tariffs and the impact of any future acquisitions, divestitures, or joint ventures that may occur in the period. Juniper is unable to provide a reconciliation of non-GAAP guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. For example, share-based compensation expense is impacted by the Company’s future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company’s stock will trade in those future periods. Amortization of intangible assets is significantly impacted by the timing and size of any future acquisitions. The items that are being excluded are difficult to predict and a reconciliation could result in disclosure that would be imprecise or potentially misleading. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically and may continue to vary significantly from quarter to quarter.
 
Second Quarter 2019 Financial Commentary Available Online
 
A CFO Commentary reviewing the Company’s second quarter 2019 financial results, as well as second quarter 2019 financial outlook will be furnished to the SEC on Form 8-K and published on the Company’s website at http://investor.juniper.net. Analysts and investors are encouraged to review this commentary prior to participating in the conference call webcast.
 
 
 
 


Posted by : Dubai PR Network Editorial Team
Viewed 3404 times
PR Category : Technology
Posted on : Sunday, July 28, 2019  12:22:00 PM UAE local time (GMT+4)
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