GEC NEWS WIREJuniper Networks reported preliminary financial results for the three months ended March 31, 2019 and provided its outlook for the three months ending June 30, 2019.
First Quarter 2019 Financial Performance
Net revenues were $1,001.7 million, a decrease of 7% year-over-year, and 15% sequentially.
GAAP operating margin was 4.3%, a decrease from 5.1% in the first quarter of 2018, and a decrease from 16.7% in the fourth quarter of 2018.
Non-GAAP operating margin was 11.2%, a decrease from 12.3% in the first quarter of 2018, and a decrease from 21.1% in the fourth quarter of 2018.
GAAP net income was $31.1 million, a decrease of 10% year-over-year, and a decrease of 84% sequentially, resulting in diluted earnings per share of $0.09.
Non-GAAP net income was $92.7 million, a decrease of 7% year-over-year and a decrease of 55% sequentially, resulting in non-GAAP diluted earnings per share of $0.26.
“The first quarter played out largely as we expected, with slightly better than forecasted sales across each of our core verticals,” said Rami Rahim, chief executive officer, Juniper Networks. “While we are pleased with the progress we experienced versus our guidance, we are not satisfied with these results and remain focused on delivering a return to growth later this year. We believe the investments we are making in our go-to-market organization, new products we are bringing to market and the acquisition of Mist Systems should position us to achieve this objective.”
“We exceeded our profitability targets during the first quarter, with non-GAAP gross margin, non-GAAP operating margin and non-GAAP earnings per share all coming in above the mid-point of our guidance,” said Ken Miller, chief financial officer, Juniper Networks. “While we were delayed in executing our proposed $300 million accelerated share repurchase program during the first quarter, due to our acquisition of Mist Systems, we plan to execute this program during the current quarter given our ongoing belief in our future prospects.”
