Feeds

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

Heads on chopping block just in time for Christmas

Boost IT visibility and business value

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." ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.