Feeds

Juniper ELIMINATES 300 jobs, braces wallet for US gov shutdown blow

Heads on chopping block just in time for Christmas

Reducing security risks from open source software

Jittery Juniper Networks is axing hundreds of workers amid concerns the US government shutdown could hamper its stateside federal business.

The cuts were confirmed during a conference call with analysts last night to discuss the firm's third-quarter results. Juniper also revealed sales had risen to $1.185bn, up three per cent sequentially and six per cent versus the same period a year ago.

This was the fifth consecutive quarter of year-on-year growth, but despite that the company's top bean counter Robyn Denholm confirmed some bloodletting is planned.

"We have taken some restructuring and rebalancing action in October that will result in the elimination of approximately 280 positions in the fourth quarter," the chief financial officer said nearing the end of her prepared remarks. This equates to a three per cent cut in global headcount.

Juniper will also continue with "real estate consolidation" but gave no indication of where this is happening. Denholm said she expected the December quarter to see "strong service provider demand" and a lift in enterprise spending: "We are carefully monitoring any impacts in federal spending from the recent US government shutdown."

Back to the third-quarter figures, product sales contributed $900.8m to the top line and services brought in $284.8m.

Hardware in the Platform Systems Division (PSD) enjoyed a revenue bounce, with routing gear up nearly 22 per cent year-on-year to $594.3m and switching gear up $2m to $147.6m. PSD services sales were up 1.3 per cent to $197.4m.

The slight growth in switching kit was due to "variability in service-provider demand for data-centre solutions". It's understood enterprises and other customers are consolidating their data centres, which is driving routing sales.

It was, however, a quarter of declines for the Software Solutions Division: sales from its security and routing products were down 17.8 and 49.5 per cent respectively, year on year, to $144.3m and $14.6m.

Denolm said the company was seeing "early signs" of this business "turning around".

The cost of transacting sales was $439.1m, down from $444.5m in the same period a year earlier, leaving a gross margin of $746.5m, up from $673.8m. After discounting total operating expenses, operating profit stood at $145m versus $42.8m.

Once the Internal Revenue Service took a slice of taxes, the net profit was $99.1m compared to just $16.8m a year ago.

Outgoing CEO Kevin Johnson, who is to retire once a successor is found, said last night: "We're in the later stages of the process." ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.