Low carrier sales hit Juniper's Q4
US operators slow infrastructure spend, depressing router sector, and vendor's new products will not ship until Q3
Published: 10 January, 2012
READ MORE: Financial | Juniper Networks | Core Network | Infrastructure
Low levels of carrier investment in routers hit Juniper's fourth quarter results, as the networking vendor warned that its revenue and profit would come in lower than its forecasts.
Based on preliminary figures, it seems that the firm will report sales between $1.11bn and $1.12bn, below its previous guidance of $1.16bn to $1.22bn. And earnings per share, excluding some expenses, will be 26-28 cents, not 32-36 cents as previously indicated.
The main culprit was a slowdown in telco spending, especially in the US. For instance, Verizon Wireless's has seen its 4G investment peak for now, and its purchasing of older technologies slowing sharply. However, another factor was that Juniper is in a transition phase on the carrier router side. Service providers are currently evaluating its latest products, which will not ship until the second half of the year - notably the T4000 core router, PTX packet/optical transport platform, and MobileNext enhanced packet core.
Despite the bad Q4, Juniper said its full year results would see record revenue. "2011 was a record year of revenue for Juniper, even though our fourth quarter revenue was weaker than expected due to service provider demand," said CEO Kevin Johnson in a statement.
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