Juniper sees pickup in demand from Ch. Telecom in Q2
HONG KONG, Feb 28 (Reuters) - Juniper Networks Inc (NasdaqNM:JNPR - news), the number-two maker of routers that manage communications traffic, expects a pick-up in purchases by China Telecom in the second quarter, after delays over the mainland fixed-line giant's restructuring deferred procurement.
``We're still seeing business coming from them, but primarily it'll be coming in the next quarter,'' said Gregory Perry, vice president for Asia-Pacific operations at California-based Juniper.
The restructuring of China Telecom, which is being split into two companies along north-south lines, was previously expected to have been completed by mid-February but has been delayed, as has an initial public offering for the southern carrier that could be worth some US$3-$5 billion.
The southern carrier will inherit the China Telecom name, while the northern firm will merge with wholesale carrier China Netcom.
``From what we can tell, the regulatory changes should be over in a month or two,'' Perry said following a media briefing.
Part of the problem, he said, is not knowing who within China Telecom has decision-making power over purchasing.
``When they get the senior people in place that can say: 'go buy this' -- that's the only part that's missing,'' Perry said.
Juniper and market-leader Cisco Systems Inc (NasdaqNM:CSCO - news), along with other communications gear makers, have suffered as carriers globally have slashed spending following a capacity building frenzy that peaked in early 2000.
Shares in Juniper fell 6.67 percent on Wednesday to close at US$9.51, far below a year high of US$78.50 and just above a low of US$8.90.
China, however, has been one of the few growth engines for equipment sellers. Juniper said its biggest mainland customer is top wireless carrier China Mobile Communications Corp, parent of China Mobile (Hong Kong).
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