Randy,
Do you own Juniper networks (Jnpr)? I'll probably sell all I have left...after the gap up tomorrow.
And try to buy it back when its cheaper.
>
Mountain View, California, April 13 (Bloomberg) -- Juniper Networks Inc., which competes with Cisco Systems Inc. in high- capacity computer-networking equipment, reported a first-quarter profit, compared with a year-earlier loss, as sales rose sixfold. The company also set a 2-for-1 stock split.
Net income was $8.07 million, or 5 cents a share, compared with a loss of $6.68 million, or 15 cents, a year earlier. Excluding amortization of goodwill and a deferred stock- compensation charge, net income was $10.5 million, or 7 cents a share, compared with a year-earlier loss of $5.77 million, or 13 cents. Revenue surged to $63.9 million from $10 million.
Last year, four-year-old Juniper grabbed 15 percent of the market for the most powerful routers, mainly at the expense of Cisco, whose share fell to 79 percent, according to researcher Dell'Oro Group. In the first quarter, Juniper began selling a new router that complements its main device and is about half as expensive. It also unveiled a more-powerful flagship router.
The new routers ``are going to help them gain even more market share in the next few quarters,' said Truc Do, an analyst at Wit SoundView who rates Juniper a ``strong buy.'
Stock Split
Analyst Paul Johnson of Robertson Stephens, who rates Juniper a ``buy,' said Juniper's market share has likely climbed above 20 percent by now.
Juniper began recognizing revenue from the less-expensive router, known as the M20, in the first quarter. On a conference call with analysts, company officials declined to break down revenue by product.
The company said it plans to begin recording sales of the new, most-powerful router, the M160, in the second quarter.
Juniper was expected to earn 3 cents a share, the average estimate of analysts polled by First Call/Thomson Financial. So- called whisper numbers published on the Internet were for profit as high as 6 cents a share.
Juniper said it will split its shares on June 15. Chief Executive Scott Kriens said the split will occur pending shareholder approval next month of an increase in Juniper's authorized shares to 1 billion from 200 million. The date for shareholders of record is May 15, he said.
The split is Juniper's second since its initial public offering last June. The company split its stock 3-for-1 in January.
Shares of Mountain View, California-based Juniper fell 29 1/8 to 175 today on the Nasdaq Stock Market. They rose as high as 204 1/8 after the earnings were released.
They've risen 15-fold since the IPO though the shares are down 43 percent from a March 28 high amid concern that the company's profit outlook doesn't justify the high valuation.
Apr/13/2000 20:45 |
