Sector,
Don't know if you read IBD but the New America section had an article on Juniper yesterday. A few excerpts:
"Juniper's router is the most powerful out there right now, and they're positioning them in the core of networks," said analyst Ritu Saini of DataquestInc.
Internet routers are only a $175 million sliver of the huge Internet pie. But that piece is expected to widen to $3.1 billion by 2003, Dataquest says...<snip>
The router market is dominated by Cisco Systems Inc.'s 7000 series products. Cisco has an 86.6% share of the market, followed by Lucent Technologies Inc. with 6.7% and Juniper with 5.7%. Saini believes Juniper's third-place position is pretty good given that it just started shipping its product.
Juniper's main clients include UUNet, MCI WorldCom Inc.'s Internet service, Verio Inc., Cable & Wireless PLC and L.M. Erickson Telephone Co.
The company lost 9 cents a share in the second quarter, vs. a 20-cent loss a year before. Sales, though, jumped to $17.6 million, from zero. <snip>
Article says Juniper uses ASICs from IBM.
Yet, as always in the information age, there's something bigger and faster on the horizon:the terabit router.
Several firms, including Nexabit, Netcore, Avici and Pluris, are working on these routers. Their search programs could reach 100 million packets per second. Although the terabit won't reach the market soon, they will present a threat down the line.
"Juniper will definitely be pushed from the core to the edge as the new terabit routers come online," Saini said.
Analysts expect the company to lose 39 cents a share this year and 4 cents in 2000, First Call says. Juniper trades as JNPR near 224.
Investor's Business Daily, August 24, 1999, pps.A10-11
Do you agree with their numbers and basic analysis? I wish we could get one of your great comparisons of performance, sales and market cap published next to this article with the caption "What's Wrong with this Picture."
Bob |
