After the bell Wednesday, Juniper Networks Inc. (JNPR) announced financial results for its second quarter, reporting a profit compared to a loss last year benefiting from higher sales of equipment, which are used to handle growing Internet traffic. On a non-GAAP basis, the company's earnings per share rose 11% year-over-year and came in line with the Wall Street expectations. Revenues for the quarter increased 17.2% from the same period last year and topped the analysts' estimate. Separately, Juniper Networks announced the appointment of Mike Rose, former executive vice president and chief information officer of Royal Dutch Shell plc (RDSB), to the Juniper Networks board of directors effective immediately. Following the news, shares of Juniper Networks rose 37 cents or 1.38% to $27.10 in after-hours trading.
The Sunnyvale, California-based Juniper Networks reported net income on a GAAP basis for the quarter of $86.2 million or $0.15 per share, compared with a GAAP net loss of $1,206.5 million or $2.13 per share for the second quarter of 2006.
Non-GAAP net income for the second quarter was $116.0 million or $0.20 per share, compared with a non-GAAP net income of $107.0 million or $0.18 per share for the second quarter of 2006.
On an average, twenty-three analysts polled by First Call/ Thomson Financial expected the company to report earnings of $0.20 per share for the second quarter.
Net revenues for the second quarter were $664.9 million, compared with $567.5 million for the second quarter of 2006, an increase of 17%. Twenty-two analysts had a revenue consensus estimate of $649.61 million for the second quarter.
In April, Juniper Networks said it expects non-GAAP earnings of $0.20 per share and revenue of $640 million to $650 million for the second quarter.
We are pleased with our progress in the second quarter and first half of 2007, and we also remain fully aware of the ongoing work that lies ahead, said Scott Kriens, Juniper Networks' Chairman and CEO.
As we continue to focus intently on execution across the company, we're optimistic about the feedback we're receiving from customers and the opportunities we see in the marketplace for high-performance networking, Kriens added.
Net cash provided by operations for the second quarter were $204.0 million, compared to cash provided by operations of $217.9 million for the second quarter of 2006.
For the six-month period, the company reported net income on a GAAP basis of $152.8 million or $0.26 per share, compared with a GAAP net loss of $1,130.7 million, including $1,283.4 million impairment charges, or $2.00 per share for the same period last year.
Non-GAAP net income for the six months ended June 30, 2007 was $228.3 million or $0.39 per share, compared with non-GAAP net income of $221.5 million or $0.37 per share for the same period in 2006.
Net revenues for the six months were $1,291.9 million, compared with $1,134.2 million for the same period last year, an increase of 14%. Net cash flows from operations for the six months were $356.6 million, compared to cash provided by operations of $356.5 million for the same period in 2006.
For its first quarter, Juniper Networks reported GAAP net income of $66.6 million or $0.11 per share, compared to $75.8 million or $0.13 per share for the year-ago quarter. Excluding items, non-GAAP net income for the first quarter was $112.4 million or $0.19 per share, compared to $113.4 million or $0.19 per share in the prior year quarter.
Revenue for the first quarter increased 11% to $626.94 million from $566.71 million in the same quarter last year. Products revenue for the quarter increased to $509.8 million from $474.1 million a year ago, while service revenue grew to $117.2 million from $92.6 million last year.
In a separate press release, Juniper Networks announced the appointment of Mike Rose, former executive VP and chief information officer of Royal Dutch Shell, to the Juniper Networks board of directors effective immediately.
Juniper Networks stated that Rose retired as executive VP and chief information officer of Royal Dutch Shell in November 2005. During Mike's four years at Shell, he led the organization's IT function through an ambitious turnaround program.
Prior to joining Shell, Mike was VP and controller of Hewlett-Packard Co. (HPQ). Mike joined HP in its Instrument Business in 1978 and later became its Controller. This was followed by assignments as area business manager.
JNPR closed Wednesday's regular trading session at $26.73, down 37 cents or 1.37%.
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