Juniper Networks Posts 4th-Qtr Loss as Sales Fall 49% (Update1)
By Scott Lanman
Sunnyvale, California, Jan. 15 (Bloomberg) -- Juniper Networks Inc., the second-largest maker of equipment to direct Internet traffic, posted a fourth-quarter loss of $5.13 million on stock compensation and acquisition costs as customers reduced spending on its gear.
The loss was 2 cents a share, compared with net income of $62.2 million, or 18 cents, a year earlier, Juniper said in a statement. Revenue dropped 49 percent to $151 million from $295.4 million.
Sunnyvale, California-based Juniper made its mark by producing a faster Internet router than No. 1 networking-equipment maker Cisco Systems Inc., taking a third of the market. Juniper's sales and earnings began to decline last year as customers cut spending to preserve profit and Cisco caught up in the speed of its router, forcing Juniper to trim forecasts.
``Management should have been more conservative in their guidance,'' said Jim Moore, an analyst at State Street Research & Management Co., before results were released. Still, the company eventually will recover because customers such as Qwest Communications International Inc. will need to add Internet capacity to handle increased demand, he said.
State Street Research sold its Juniper shares last May...
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