Feeds

Juniper Networks swings $4.5m loss in Q1

Blames economic death and taxes

Build a business case: developing custom apps

Juniper Networks swung a net loss of $4.5 million in its first quarter of 2009, as a hefty one-time tax charge mixed rather nastily with telcos cutting their network spending in the recession.

Net income of -$4.5m in Juniper's three month quarter ended March 31 compared to a $110.4m gain in the same quarter last year. Not counting the non-recurring charges, net income was $91.6m, down 37 per cent year-over-year.

Juniper's coffers were made lighter by a $61.8m charge from "a change in California income tax law enacted during the first quarter of 2009." Then there were restructuring charges related to laying off 140 positions — which the firm says is half the planned workforce reductions in 2009.

Juniper financial chief Robyn Denholm said in the company's earnings conference call Thursday that most of the Q1 sackings were in sales and marketing. But when additional hirings in R&D and customer service during the quarter are taken into account, the company eliminated a net of 39 positions.

Net revenue was $764.2m, down 7 per cent year-over-year from $822.9m.

“Juniper has responded well to the challenging macroeconomic environment. "Our focus remains on balancing short-term market realities with our commitment to creating long-term shareholder value," said Kevin Johnson, Juniper's CEO in a prepared statement. "We’re doing that by aggressively and thoughtfully managing operating expenses to ensure that we maintain strong levels of investment in our innovation and customer focused initiatives."

Juniper's operating margin in Q1 declined to 10.6 per cent from 17.3 per cent in the same quarter a year ago.

Johnson said he's seeing more stability in the market because more customers now have their recession-ready budgets in place. Despite this, Johnson said visibility of what's ahead is still low.

Juniper expects the current quarter to be roughly flat with Q1, arriving somewhere between $740m and $780m. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.