Juniper Networks Lowers Forecast for 1st-Qtr Revenue (Update5)
By Justin Baer
03/27 19:15
quote.bloomberg.com
Sunnyvale, California, March 27 (Bloomberg) -- Juniper Networks Inc., the world's second-biggest maker of equipment to direct Internet traffic, reduced its first-quarter sales forecast after phone companies decreased spending on networking gear. The shares fell as much as 12 percent.
Sales will be $120 million to $125 million, below the previous estimate of $150 million to $155 million. First-quarter profit, excluding certain expenses, will be ``somewhat above breakeven,'' Juniper said in a statement.
The company's revenue has fallen in the past year as customers, including Qwest Communications International Inc., cut spending amid slumping demand. Juniper, whose market value is a 10th of what it was in December 2000, sells primarily to phone companies. Larger rival Cisco Systems Inc. has regained market share from Juniper by selling more gear to corporate clients.
``It's going to be ugly with a capital `U' for equipment makers in the short term,'' said Kevin Risen, a fund manager at Neuberger Berman Inc., which owned Juniper shares in December, according to Bloomberg data. Juniper's customers ``have to improve their cash flow, so they're putting on hold as much capital spending as possible.'' |
