Juniper Networks Reports Preliminary Second Quarter 2019 Financial Results

Juniper Networks reported preliminary financial results for the three months ended June 30, 2019 and provided its outlook for the three months ending September 30, 2019.

Second Quarter 2019 Financial Performance

• Net revenues were $1,102.5 million, a decrease of 8% year-over-year, and an increase of 10% sequentially.
• GAAP operating margin was 7.5%, a decrease from 13.3% in the second quarter of 2018, and an increase from 4.3% in the first quarter of 2019.
• Non-GAAP operating margin was 15.8%, a decrease from 18.5% in the second quarter of 2018, and an increase from 11.2% in the first quarter of 2019.
• GAAP net income was $46.2 million, a decrease of 60% year-over-year, and an increase of 49% sequentially, resulting in diluted earnings per share of $0.13.
• Non-GAAP net income was $139.5 million, a decrease of 18% year-over-year, and an increase of 50% sequentially, resulting in non-GAAP diluted earnings per share of $0.40.

“We experienced encouraging trends during the June quarter, as we saw sequential revenue growth across industry verticals and technologies,” said Rami Rahim, chief executive officer, Juniper Networks. “We are making progress with our sales transformation efforts which, along with our strong pipeline of opportunities, is providing confidence in our ability to not only deliver sequential revenue growth through the remainder of the year, but also a return to year-over-year growth during the December quarter.”

“We executed well during the June quarter, achieving our revenue guidance and exceeding the midpoint of our non-GAAP earnings per share outlook, despite incremental China tariffs and a higher  non-GAAP tax rate,” said Ken Miller, chief financial officer, Juniper Networks. “We have made substantial progress mitigating the impact of the incremental China tariffs and will continue to further optimize our supply chain. These factors, along with sequential second half revenue growth; and strong cost management should enable us to deliver improved profitability in the back half of 2019.”