April 22, 2014 / 11:22 PM / 4 years ago

Juniper's revenue rises as telecom clients ramp up networks

(Reuters) - Network gear maker Juniper Networks Inc (JNPR.N) reported a higher-than-expected 10 percent rise in quarterly revenue as U.S. telecom carriers spent more to ramp up their networks to manage increasing data traffic on smartphones and tablets.

A woman walks past a banner with the logo of Juniper Networks Inc. covering the facade of the New York Stock Exchange, October 29, 2009. REUTERS/Brendan McDermid

U.S. consumers will download and upload more data on their smartphones in 2018 than they did on their laptops in 2013, according to a February report by Cisco Systems Inc (CSCO.O).

Juniper’s revenue from telecom customers, including Verizon Communications Inc (VZ.N) and AT&T Inc (T.N), rose about 10 percent in the first quarter ended March 31.

The telecom services business accounted for more than two-thirds of Juniper’s total revenue.

Separately, AT&T said on Tuesday that it was adding Juniper as a supplier for its cloud network expansion program.

Juniper forecast an adjusted profit of 36-39 cents per share and revenue of $1.20 billion-$1.23 billion for the second quarter ending June 30.

Analysts on average were expecting a profit of 36 cents per share on revenue of $1.21 billion, according to Thomson Reuters

I/B/E/S.

Juniper, which has been under pressure from investors Elliott Management Corp and Jana Partners LLC to focus on its fast-growing networking business, said in February that it would cut $160 million in costs annually.

Earlier this month, Juniper said it would reduce its workforce by 6 percent as part of the plan.

MKM Partners analyst Michael Genovese said there was a possibility the company could announce further job cuts.

“I don’t think they have done all the cuts they need to do to get to $160 million in savings,” he said. “I think there will be (further) small cuts ... maybe 2 percent (of workforce) as they really get out of some of the lower-end products.”

Juniper’s net income rose to $110.6 million, or 22 cents per share, in the first quarter from $91.0 million, or 18 cents per share, a year earlier.

Revenue rose 10.4 percent to $1.17 billion.

Excluding items, the company earned 29 cents per share. Juniper took a restructuring charge of $122 million in the quarter.

Analysts on average had expected a profit of 29 cents per share on revenue of $1.15 billion.

The company bought back shares worth $900 million in the first quarter as part of a program to repurchase stock worth $3 billion over three years.

Juniper’s shares were little changed in extended trading. The stock, which has risen about 15 percent this year, closed at $25.89 on the New York Stock Exchange on Tuesday.

Editing by Kirti Pandey

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below