Juniper Networks Reports Preliminary Third Quarter 2024 Financial Results
Juniper Networks (JNPR) reported Q3 2024 financial results with net revenues of $1,331.0 million, showing a 5% year-over-year decrease but a 12% sequential increase. The company's GAAP net income reached $92.6 million, up 22% year-over-year, with diluted EPS of $0.28. Product orders grew nearly 60% year-over-year, with strong demand from cloud customers for AI networking initiatives. The company declared a dividend of $0.22 per share. HPE's planned acquisition of Juniper for $40.00 per share ($14 billion) is expected to close in late 2024 or early 2025.
Juniper Networks (JNPR) ha riportato i risultati finanziari del terzo trimestre del 2024 con ricavi netti di 1.331,0 milioni di dollari, registrando una diminuzione del 5% rispetto all'anno precedente, ma un aumento del 12% rispetto al trimestre precedente. Il reddito netto GAAP dell'azienda ha raggiunto 92,6 milioni di dollari, con un incremento del 22% rispetto all'anno scorso, e un utile per azione diluito di $0,28. Gli ordini di prodotto sono aumentati di quasi il 60% su base annua, grazie a una forte domanda da parte dei clienti cloud per iniziative di rete AI. L'azienda ha dichiarato un dividendo di $0,22 per azione. L'acquisizione pianificata di Juniper da parte di HPE per $40,00 per azione (14 miliardi di dollari) è prevista per la fine del 2024 o l'inizio del 2025.
Juniper Networks (JNPR) reportó los resultados financieros del tercer trimestre de 2024 con ingresos netos de $1,331.0 millones, mostrando una disminución del 5% en comparación con el año anterior, pero un aumento del 12% en comparación con el trimestre anterior. El ingreso neto bajo GAAP de la compañía alcanzó $92.6 millones, un incremento del 22% en comparación con el año pasado, con ganancias por acción diluidas de $0.28. Los pedidos de productos crecieron casi un 60% en comparación con el año anterior, con una fuerte demanda de los clientes de la nube por iniciativas de redes de inteligencia artificial. La empresa declaró un dividendo de $0.22 por acción. La adquisición planeada de Juniper por parte de HPE por $40.00 por acción (14 mil millones de dólares) se espera que cierre a finales de 2024 o principios de 2025.
주니퍼 네트웍스 (JNPR)는 2024년 3분기 재무 결과를 발표했습니다. 순매출은 13억 3,310만 달러로, 전년 대비 5% 감소했지만, 전 분기 대비 12% 증가했습니다. 회사의 GAAP 순이익은 9260만 달러로, 전년 대비 22% 증가했으며, 희석 주당순이익은 $0.28입니다. 제품 주문은 전년 대비 거의 60% 증가했으며, 클라우드 고객들로부터 AI 네트워킹 이니셔티브에 대한 강력한 수요가 있었습니다. 회사는 주당 $0.22의 배당금을 선언했습니다. HPE가 주당 $40.00에 주니퍼를 인수할 계획은 2024년 말 또는 2025년 초에 마무리될 예정입니다.
Juniper Networks (JNPR) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus nets de 1,331.0 millions de dollars, montrant une diminution de 5% par rapport à l'année précédente, mais une augmentation de 12% par rapport au trimestre précédent. Le bénéfice net selon les normes GAAP de l'entreprise a atteint 92,6 millions de dollars, en hausse de 22% par rapport à l'année dernière, avec un BPA dilué de 0,28 $. Les commandes de produits ont augmenté de près de 60% par rapport à l'année précédente, avec une forte demande des clients cloud pour des initiatives de réseaux d'IA. L'entreprise a déclaré un dividende de 0,22 $ par action. L'acquisition annoncée de Juniper par HPE pour 40,00 $ par action (14 milliards de dollars) devrait être finalisée fin 2024 ou début 2025.
Juniper Networks (JNPR) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit Nettoumsätzen von 1.331,0 Millionen Dollar, was einem Rückgang von 5% im Jahresvergleich entspricht, jedoch einem Anstieg von 12% gegenüber dem Vorquartal. Der GAAP-Nettoeinkommen des Unternehmens betrug 92,6 Millionen Dollar, was einem Anstieg von 22% im Vergleich zum Vorjahr entspricht, mit einem verwässerten Gewinn pro Aktie von $0,28. Die Produktbestellungen stiegen im Jahresvergleich um fast 60%, wobei eine starke Nachfrage von Cloud-Kunden nach KI-Netzwerkinitiativen zu verzeichnen war. Das Unternehmen erklärte eine Dividende von $0,22 pro Aktie. Die geplante Übernahme von Juniper durch HPE zu $40,00 pro Aktie (14 Milliarden Dollar) wird voraussichtlich Ende 2024 oder Anfang 2025 abgeschlossen sein.
- Product orders grew nearly 60% year-over-year
- GAAP net income increased 22% year-over-year to $92.6 million
- Strong demand from cloud customers for AI networking initiatives
- Double-digit sequential and year-over-year order growth in enterprise and service provider verticals
- Cash position improved to $1,562.9 million from $1,418.0 million year-over-year
- Net revenues decreased 5% year-over-year to $1,331.0 million
- Non-GAAP operating margin declined to 15.0% from 17.5% year-over-year
- Non-GAAP net income decreased 18% year-over-year to $159.7 million
- Operating cash flow decreased to $192.2 million from $329.2 million year-over-year
- Stock repurchase program suspended due to HPE merger agreement
Insights
The Q3 results present a mixed picture with some concerning trends but also positive developments. Revenue declined
The GAAP operating margin improved to
With HPE's pending acquisition at
The surge in AI-related networking orders represents a significant strategic shift in Juniper's business landscape. The nearly
The double-digit growth in enterprise and service provider verticals suggests a well-balanced portfolio expansion beyond just cloud services. However, the pending HPE acquisition could reshape how these opportunities are pursued, potentially leading to enhanced market reach through combined capabilities. The focus on both front-end and back-end AI networking initiatives demonstrates Juniper's comprehensive approach to AI infrastructure requirements.
Proposed Merger with Hewlett Packard Enterprise
As announced on January 9, 2024, Hewlett Packard Enterprise Company (“HPE”) plans to acquire Juniper Networks in an all-cash transaction for
Third Quarter 2024 Financial Performance
Net revenues were
GAAP operating margin was
Non-GAAP operating margin was
GAAP net income was
Non-GAAP net income was
The reconciliation between GAAP and non-GAAP financial measures is provided in a table immediately following the Preliminary Net Revenues by Geographic Region table below.
“We experienced strong demand during the September quarter, with total product orders growing nearly
“Our Q3 financial results exceeded our expectations,” said Juniper’s CFO, Ken Miller. “We maintain strong momentum entering the December quarter and remain optimistic regarding our long-term financial prospects.”
Balance Sheet and Other Financial Results
Total cash, cash equivalents, and investments as of September 30, 2024 were
Net cash flows provided by operations for the third quarter of 2024 were
Days sales outstanding in accounts receivable was 65 days in the third quarter of 2024, compared to 60 days in the third quarter of 2023, and 66 days in the second quarter of 2024.
Capital expenditures were
Capital Return
Our Board of Directors has declared a cash dividend of
Third Quarter 2024 Financial Commentary Available Online
A CFO Commentary reviewing Juniper Networks’ preliminary third quarter 2024 financial results will be published on Juniper Networks’ website at http://investor.juniper.net.
In light of the proposed transaction with HPE, and as is customary during the pendency of an acquisition, Juniper Networks will not be providing financial guidance for 2024.
About Juniper Networks
Juniper Networks believes that connectivity is not the same as experiencing a great connection. Juniper's AI-Native Networking Platform is built from the ground up to leverage AI to deliver exceptional, highly secure and sustainable user experiences from the edge to the data center and cloud. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on X (formerly Twitter), LinkedIn, and Facebook.
Investors and others should note that Juniper Networks announces material financial and operational information to its investors using its Investor Relations website, press releases, SEC filings and public conference calls and webcasts. Juniper Networks also intends to use the X (formerly Twitter) account @JuniperNetworks and Juniper Networks’ blogs as a means of disclosing information about Juniper Networks and for complying with its disclosure obligations under Regulation FD. The social media channels that Juniper Networks intends to use as a means of disclosing information described above may be updated from time to time as listed on Juniper Networks’ Investor Relations website.
Juniper Networks, the Juniper Networks logo, Juniper, Junos, and other trademarks are registered trademarks of Juniper Networks, Inc. and/or its affiliates in
Safe Harbor; Forward-Looking Statements
Statements in this release concerning Juniper Networks’ business, economic and market outlook, our expectations regarding our liquidity and capital return program; deal, customer and product mix; costs and supply constraints; backlog; customer demand; the completion of the proposed transaction with HPE on anticipated terms and timing or at all, including obtaining regulatory approvals and other conditions to the completion of the transaction; and our overall future prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including: the completion of the proposed transaction with HPE on anticipated terms and timing or at all, including obtaining regulatory approvals and other conditions to the completion of the transaction; the fact that if the proposed transaction is completed, Juniper stockholders will forego the opportunity to realize the potential long-term value of the successful execution of Juniper’s current strategy as an independent company, which will also be affected by the ability of HPE to integrate and implement its plans, forecasts and other expectations with respect to Juniper’s business after the completion of the proposed transaction and realize additional opportunities for growth and innovation; the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement; Juniper’s ability to implement its business strategies; potential significant transaction costs associated with the proposed transaction; the risks related to HPE’s financing of the proposed transaction; potential litigation or regulatory actions relating to the proposed transaction; the risk that disruptions from the proposed transaction will harm Juniper’s business, including current plans and operations, and risks related to diverting management’s attention from Juniper’s ongoing business operations and relationships; the ability of Juniper to retain and hire personnel; potential adverse business uncertainty resulting from the announcement, pendency or completion of the proposed transaction, including restrictions during the pendency of the proposed transaction that may impact Juniper’s ability to pursue certain business opportunities or strategic transactions; legal, regulatory, tax and economic developments affecting Juniper’s business; the unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities or current or future pandemics or epidemics, as well as Juniper’s response to any of the aforementioned factors; general economic and political conditions globally or regionally, including the impact of a
Use of Non-GAAP Financial Information
Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to Juniper Networks’ financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the "Discussion of Non-GAAP Financial Measures" section of this press release. The following tables and reconciliations can also be found on our Investor Relations website at http://investor.juniper.net.
Juniper Networks, Inc. Preliminary Condensed Consolidated Statements of Operations (in millions, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net revenues: |
|
|
|
|
|
|
|
||||||||
Product |
$ |
816.7 |
|
$ |
898.1 |
|
|
$ |
2,149.8 |
|
|
$ |
2,773.9 |
|
|
Service |
|
514.3 |
|
|
|
499.7 |
|
|
|
1,519.7 |
|
|
|
1,425.8 |
|
Total net revenues |
|
1,331.0 |
|
|
|
1,397.8 |
|
|
|
3,669.5 |
|
|
|
4,199.7 |
|
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Product |
|
409.3 |
|
|
|
445.6 |
|
|
|
1,089.4 |
|
|
|
1,371.2 |
|
Service |
|
148.3 |
|
|
|
141.8 |
|
|
|
437.3 |
|
|
|
433.8 |
|
Total cost of revenues |
|
557.6 |
|
|
|
587.4 |
|
|
|
1,526.7 |
|
|
|
1,805.0 |
|
Gross margin |
|
773.4 |
|
|
|
810.4 |
|
|
|
2,142.8 |
|
|
|
2,394.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
290.6 |
|
|
|
288.5 |
|
|
|
861.8 |
|
|
|
855.3 |
|
Sales and marketing |
|
308.2 |
|
|
|
311.5 |
|
|
|
911.0 |
|
|
|
923.0 |
|
General and administrative |
|
62.1 |
|
|
|
60.3 |
|
|
|
183.6 |
|
|
|
193.5 |
|
Restructuring charges |
|
4.8 |
|
|
|
62.5 |
|
|
|
10.5 |
|
|
|
78.5 |
|
Merger-related charges (1) |
|
13.6 |
|
|
|
— |
|
|
|
51.0 |
|
|
|
— |
|
Total operating expenses |
|
679.3 |
|
|
|
722.8 |
|
|
|
2,017.9 |
|
|
|
2,050.3 |
|
Operating income |
|
94.1 |
|
|
|
87.6 |
|
|
|
124.9 |
|
|
|
344.4 |
|
Gain (loss) on privately-held investments, net |
|
0.5 |
|
|
|
— |
|
|
|
(13.1 |
) |
|
|
(92.0 |
) |
Other income (expense), net |
|
2.3 |
|
|
|
(4.8 |
) |
|
|
5.7 |
|
|
|
(21.0 |
) |
Income before income taxes and loss from equity method investment |
|
96.9 |
|
|
|
82.8 |
|
|
|
117.5 |
|
|
|
231.4 |
|
Income tax provision (benefit) |
|
2.1 |
|
|
|
5.0 |
|
|
|
(14.8 |
) |
|
|
39.6 |
|
Loss from equity method investment, net of tax |
|
2.2 |
|
|
|
1.7 |
|
|
|
6.4 |
|
|
|
5.9 |
|
Net income |
$ |
92.6 |
|
|
$ |
76.1 |
|
|
$ |
125.9 |
|
|
$ |
185.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.28 |
|
|
$ |
0.24 |
|
|
$ |
0.39 |
|
|
$ |
0.58 |
|
Diluted |
$ |
0.28 |
|
|
$ |
0.24 |
|
|
$ |
0.38 |
|
|
$ |
0.57 |
|
Weighted-average shares used to compute net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
329.4 |
|
|
|
319.3 |
|
|
|
325.7 |
|
|
|
320.3 |
|
Diluted |
|
335.9 |
|
|
|
323.8 |
|
|
|
333.4 |
|
|
|
326.3 |
|
__________________ |
|||||||||||||||
(1) Represents charges incurred directly in connection with the pending merger with HPE. |
|||||||||||||||
Juniper Networks, Inc. Preliminary Net Revenues by Customer Solution (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Customer Solutions(*): |
|
|
|
|
|
|
|
||||||||
Wide Area Networking |
$ |
363.2 |
|
$ |
436.1 |
|
$ |
1,054.4 |
|
$ |
1,385.2 |
||||
Data Center |
|
244.6 |
|
|
|
170.0 |
|
|
|
576.4 |
|
|
|
563.9 |
|
Campus and Branch |
|
319.3 |
|
|
|
382.5 |
|
|
|
839.7 |
|
|
|
1,070.6 |
|
Hardware Maintenance and Professional Services |
|
403.9 |
|
|
|
409.2 |
|
|
|
1,199.0 |
|
|
|
1,180.0 |
|
Total |
$ |
1,331.0 |
|
|
$ |
1,397.8 |
|
|
$ |
3,669.5 |
|
|
$ |
4,199.7 |
|
__________________ |
|||||||||||||||
(*) Effective as of the first quarter of 2024, our Customer Solution revenue categories include the following name changes, and historical revenue by customer solution was not impacted by the name change: 1) Automated WAN Solutions changed to Wide Area Networking, 2) Cloud-Ready Data Center changed to Data Center, and 3) AI-Driven Enterprise changed to Campus and Branch. |
|||||||||||||||
Juniper Networks, Inc. Preliminary Net Revenues by Vertical (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cloud |
$ |
349.6 |
|
$ |
269.6 |
|
$ |
867.5 |
|
$ |
845.5 |
||||
Service Provider |
|
389.0 |
|
|
|
418.8 |
|
|
|
1,138.0 |
|
|
|
1,442.3 |
|
Enterprise |
|
592.4 |
|
|
|
709.4 |
|
|
|
1,664.0 |
|
|
|
1,911.9 |
|
Total |
$ |
1,331.0 |
|
|
$ |
1,397.8 |
|
|
$ |
3,669.5 |
|
|
$ |
4,199.7 |
|
Juniper Networks, Inc. Preliminary Net Revenues by Geographic Region (in millions) (unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
$ |
844.1 |
|
$ |
836.5 |
|
$ |
2,223.6 |
|
$ |
2,483.6 |
||||
|
|
302.1 |
|
|
|
345.4 |
|
|
|
909.6 |
|
|
|
1,069.9 |
|
|
|
184.8 |
|
|
|
215.9 |
|
|
|
536.3 |
|
|
|
646.2 |
|
Total |
$ |
1,331.0 |
|
|
$ |
1,397.8 |
|
|
$ |
3,669.5 |
|
|
$ |
4,199.7 |
|
Juniper Networks, Inc. Preliminary Reconciliations between GAAP and non-GAAP Financial Measures (in millions, except percentages and per share amounts) (unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
||||||
GAAP operating income |
|
$ |
94.1 |
|
|
$ |
45.0 |
|
|
$ |
87.6 |
|
GAAP operating margin |
|
|
7.1 |
% |
|
|
3.8 |
% |
|
|
6.3 |
% |
Share-based compensation expense |
C |
|
70.2 |
|
|
|
61.3 |
|
|
|
74.7 |
|
Share-based payroll tax expense |
C |
|
4.5 |
|
|
|
0.7 |
|
|
|
3.7 |
|
Amortization of purchased intangible assets |
A |
|
10.7 |
|
|
|
10.7 |
|
|
|
17.1 |
|
Restructuring charges |
B |
|
4.8 |
|
|
|
1.6 |
|
|
|
62.5 |
|
Merger-related charges |
B |
|
13.6 |
|
|
|
9.1 |
|
|
|
— |
|
Acquisition and integration-related benefits |
A |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Gain (loss) on non-qualified deferred compensation plan ("NQDC") |
B |
|
2.0 |
|
|
|
1.3 |
|
|
|
(0.9 |
) |
Others |
B |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP operating income |
|
$ |
200.0 |
|
|
$ |
129.7 |
|
|
$ |
244.8 |
|
Non-GAAP operating margin |
|
|
15.0 |
% |
|
|
10.9 |
% |
|
|
17.5 |
% |
|
|
|
|
|
|
|
||||||
GAAP net income |
|
$ |
92.6 |
|
|
$ |
34.1 |
|
|
$ |
76.1 |
|
Share-based compensation expense |
C |
|
70.2 |
|
|
|
61.3 |
|
|
|
74.7 |
|
Share-based payroll tax expense |
C |
|
4.5 |
|
|
|
0.7 |
|
|
|
3.7 |
|
Amortization of purchased intangible assets |
A |
|
10.7 |
|
|
|
10.7 |
|
|
|
17.1 |
|
Restructuring charges |
B |
|
4.8 |
|
|
|
1.6 |
|
|
|
62.5 |
|
Merger-related charges |
B |
|
13.6 |
|
|
|
9.1 |
|
|
|
— |
|
Acquisition and integration-related benefits |
A |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Gain on equity investments |
B |
|
(3.1 |
) |
|
|
(3.5 |
) |
|
|
(1.5 |
) |
Loss from equity method investment |
B |
|
2.2 |
|
|
|
2.1 |
|
|
|
1.7 |
|
Income tax effect of tax legislation |
B |
|
— |
|
|
|
— |
|
|
|
(7.8 |
) |
Income tax effect of non-GAAP exclusions |
B |
|
(35.4 |
) |
|
|
(13.8 |
) |
|
|
(32.7 |
) |
Others |
B |
|
(0.4 |
) |
|
|
(0.7 |
) |
|
|
— |
|
Non-GAAP net income |
|
$ |
159.7 |
|
|
$ |
101.6 |
|
|
$ |
193.9 |
|
|
|
|
|
|
|
|
||||||
GAAP diluted net income per share |
|
$ |
0.28 |
|
|
$ |
0.10 |
|
|
$ |
0.24 |
|
Non-GAAP diluted net income per share |
D |
$ |
0.48 |
|
|
$ |
0.31 |
|
|
$ |
0.60 |
|
Shares used in computing diluted net income per share |
|
|
335.9 |
|
|
|
332.7 |
|
|
|
323.8 |
|
Discussion of Non-GAAP Financial Measures
Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations.
This press release, including the tables above, includes the following non-GAAP financial measures derived from our Preliminary Consolidated Statements of Operations: operating income; operating margin; net income; and diluted net income per share. These measures are not presented in accordance with, nor are they a substitute for GAAP. In addition, these measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The non-GAAP financial measures used in the table above should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Certain of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.
We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures presented above to be helpful in assessing the performance of the continuing operation of our business. By continuing operation, we mean the ongoing revenue and expenses of the business, excluding certain items that render comparisons with prior periods or analysis of on-going operating trends more difficult, such as expenses not directly related to the actual cash costs of development, sale, delivery or support of our products and services, or expenses that are reflected in periods unrelated to when the actual amounts were incurred or paid. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. In addition, we have historically reported non-GAAP results to the investment community and believe that continuing to provide non-GAAP measures provides investors with a tool for comparing results over time. In assessing the overall health of our business for the periods covered by the table above and, in particular, in evaluating the financial line items presented in the table above, we have excluded items in the following three general categories, each of which are described below: Acquisition Related Charges, Other Items, and Share-Based Compensation Related Items. We also provide additional detail below regarding the shares used to calculate our non-GAAP net income per share. Notes identified for line items in the table above correspond to the appropriate note description below.
The above tables and reconciliations can also be found on our Investor Relations website at http://investor.juniper.net.
Note A: Acquisition Related Charges. We exclude certain expense items resulting from acquisitions including amortization of purchased intangible assets associated with our acquisitions. The amortization of purchased intangible assets associated with acquisitions results in recording expenses in our GAAP financial statements that were already expensed by the acquired company before the acquisition and for which we have not expended cash. Moreover, had we internally developed the products acquired, the amortization of intangible assets, and the expenses of uncompleted research and development would have been expensed in prior periods. Accordingly, we analyze the performance of our operations in each period without regard to such expenses. In addition, acquisitions result in non-continuing operating expenses, which would not otherwise have been incurred by us in the normal course of our business operations. We believe that providing non-GAAP information for acquisition-related expense items in addition to the corresponding GAAP information allows the users of our financial statements to better review and understand the historic and current results of our continuing operations, and also facilitates comparisons to less acquisitive peer companies.
Note B: Other Items. We exclude certain other items that are the result of either unique, infrequent or unplanned events, including the following, when applicable: (i) strategic investment-related gain or loss, including gain or loss from our equity method investment and our privately-held investments; (ii) legal reserve and settlement charges or benefits; (iii) gain or loss on significant isolated events or transactions, including divestitures and the
In addition, we exclude restructuring benefits or charges as these result from events that arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. As such, we believe these expenses do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred or comparisons to past operating results. We also exclude gains or losses related to strategic investments as well as significant isolated events as they are directly related to an event that is distinct and does not reflect current ongoing business operations. In the case of legal reserves and settlements, these gains or losses are recorded in the period in which the matter is concluded or resolved even though the subject matter of the underlying dispute may relate to multiple or different periods. As such, we believe that these expenses do not accurately reflect the underlying performance of our continuing operations for the period in which they are incurred. Additionally, we exclude previously unrecognized tax benefits that are non-recurring in nature which are recorded in the period in which applicable statutes of limitation lapse or upon the completion of tax review cycles as the tax matter may relate to multiple or different periods. Further, certain items related to global tax reform may continue to impact the business and are generally unrelated to the current level of business activity. We believe these tax events limit the comparability with prior periods and that these expenses or benefits do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. We also believe providing financial information with and without the income tax effect of excluding items related to our non-GAAP financial measures provide our management and users of the financial statements with better clarity regarding the on-going performance and future liquidity of our business. Because of these factors, we assess our operating performance with these amounts both included and excluded, and by providing this information, we believe the users of our financial statements are better able to understand the financial results of what we consider our continuing operations.
Note C: Share-Based Compensation Related Items. We provide non-GAAP information relative to our expense for share-based compensation and related payroll tax. Due to the varying available valuation methodologies, subjective assumptions and the variety of award types, which affect the calculations of share-based compensation, we believe that the exclusion of share-based compensation and related payroll tax allows for more accurate comparisons of our operating results to our peer companies and is useful to investors to understand the impact of share-based compensation on our results of operations. Further, expense associated with granting share-based awards does not reflect any cash expenditures by the company as no cash is expended.
Note D: Non-GAAP Net Income Per Share Items. We provide diluted non-GAAP net income per share. The diluted non-GAAP net income per share includes additional dilution from potential issuance of common stock, except when such issuances would be anti-dilutive.
Juniper Networks, Inc. Preliminary Condensed Consolidated Balance Sheets (in millions) (unaudited) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,065.0 |
|
$ |
1,068.1 |
||
Short-term investments |
|
166.7 |
|
|
|
139.4 |
|
Accounts receivable, net of allowances |
|
958.1 |
|
|
|
1,044.1 |
|
Inventory |
|
872.5 |
|
|
|
952.4 |
|
Prepaid expenses and other current assets |
|
463.2 |
|
|
|
591.5 |
|
Total current assets |
|
3,525.5 |
|
|
|
3,795.5 |
|
Property and equipment, net |
|
684.9 |
|
|
|
689.9 |
|
Operating lease assets |
|
148.5 |
|
|
|
111.4 |
|
Long-term investments |
|
331.2 |
|
|
|
116.8 |
|
Purchased intangible assets, net |
|
53.1 |
|
|
|
91.8 |
|
Goodwill |
|
3,734.4 |
|
|
|
3,734.4 |
|
Other long-term assets |
|
1,118.0 |
|
|
|
978.7 |
|
Total assets |
$ |
9,595.6 |
|
|
$ |
9,518.5 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
258.0 |
|
|
$ |
295.1 |
|
Accrued compensation |
|
314.4 |
|
|
|
292.2 |
|
Deferred revenue |
|
1,118.1 |
|
|
|
1,130.0 |
|
Other accrued liabilities |
|
357.6 |
|
|
|
386.7 |
|
Total current liabilities |
|
2,048.1 |
|
|
|
2,104.0 |
|
Long-term debt |
|
1,632.6 |
|
|
|
1,616.8 |
|
Long-term deferred revenue |
|
950.2 |
|
|
|
894.9 |
|
Long-term income taxes payable |
|
81.1 |
|
|
|
204.5 |
|
Long-term operating lease liabilities |
|
124.0 |
|
|
|
82.9 |
|
Other long-term liabilities |
|
116.9 |
|
|
|
122.7 |
|
Total liabilities |
|
4,952.9 |
|
|
|
5,025.8 |
|
Total stockholders' equity |
|
4,642.7 |
|
|
|
4,492.7 |
|
Total liabilities and stockholders' equity |
$ |
9,595.6 |
|
|
$ |
9,518.5 |
|
Juniper Networks, Inc. Preliminary Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
125.9 |
|
|
$ |
185.9 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Share-based compensation expense |
|
211.4 |
|
|
|
197.6 |
|
Depreciation, amortization, and accretion |
|
119.6 |
|
|
|
147.4 |
|
Deferred income taxes |
|
(147.6 |
) |
|
|
(154.5 |
) |
Provision for inventory excess and obsolescence (1) |
|
26.3 |
|
|
|
100.5 |
|
Operating lease assets expense |
|
32.3 |
|
|
|
30.5 |
|
Loss on privately-held investments, net |
|
13.1 |
|
|
|
92.0 |
|
Loss from equity method investment |
|
6.4 |
|
|
|
5.9 |
|
Impairment of assets |
|
5.2 |
|
|
|
26.1 |
|
Other |
|
(7.3 |
) |
|
|
(2.3 |
) |
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable, net |
|
86.4 |
|
|
|
289.7 |
|
Inventory (1) |
|
34.8 |
|
|
|
(472.6 |
) |
Prepaid expenses and other assets |
|
130.2 |
|
|
|
193.3 |
|
Accounts payable |
|
(31.2 |
) |
|
|
(21.9 |
) |
Accrued compensation |
|
22.5 |
|
|
|
(82.5 |
) |
Income taxes payable |
|
(97.6 |
) |
|
|
135.7 |
|
Other accrued liabilities (1) |
|
(65.6 |
) |
|
|
16.4 |
|
Deferred revenue |
|
43.5 |
|
|
|
176.5 |
|
Net cash provided by operating activities |
|
508.3 |
|
|
|
863.7 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(88.3 |
) |
|
|
(124.0 |
) |
Purchases of available-for-sale debt securities |
|
(471.3 |
) |
|
|
(28.1 |
) |
Proceeds from sales of available-for-sale debt securities |
|
36.7 |
|
|
|
28.2 |
|
Proceeds from maturities and redemptions of available-for-sale debt securities |
|
182.3 |
|
|
|
175.1 |
|
Purchases of equity securities |
|
(7.1 |
) |
|
|
(5.5 |
) |
Proceeds from sales of equity securities |
|
5.5 |
|
|
|
11.0 |
|
Funding of loan receivable |
|
— |
|
|
|
(7.7 |
) |
Other |
|
— |
|
|
|
1.8 |
|
Net cash (used in) provided by investing activities |
|
(342.2 |
) |
|
|
50.8 |
|
Cash flows from financing activities: |
|
|
|
||||
Repurchase and retirement of common stock |
|
(15.2 |
) |
|
|
(396.8 |
) |
Proceeds from issuance of common stock |
|
60.5 |
|
|
|
61.7 |
|
Payment of dividends |
|
(215.6 |
) |
|
|
(210.5 |
) |
Payment of debt issuance costs |
|
— |
|
|
|
(1.3 |
) |
Other |
|
1.4 |
|
|
|
— |
|
Net cash used in financing activities |
|
(168.9 |
) |
|
|
(546.9 |
) |
Effect of foreign currency exchange rates on cash, cash equivalents, and restricted cash |
|
(1.1 |
) |
|
|
(4.1 |
) |
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(3.9 |
) |
|
|
363.5 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
1,084.3 |
|
|
|
897.7 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
1,080.4 |
|
|
$ |
1,261.2 |
|
__________________ |
|||||||
(1) The prior period amounts have been reclassified to conform to the current period presentation. |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031068251/en/
Investor Relations:
Jess Lubert
Juniper Networks
(408) 936-3734
jlubert@juniper.net
Media Relations:
Penny Still
Juniper Networks
+441372385692
pstill@juniper.net
Source: Juniper Networks
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