| | Juniper's Net More Than Doubles,
Lifted by Growth in Broadband
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
Juniper Networks Inc. more than doubled its net income in the second quarter, as demand for high-speed Internet products helped fuel 41% revenue growth.
The Sunnyvale, Calif., networking company reported net income of $13.6 million, or three cents a share, compared with earnings of $6.2 million, or two cents a share, the previous year. Revenue jumped to $165.1 million from $117 million.
Excluding gains from the sale of investments and retirement of debt and other one-time items, Juniper earned $10.3 million, still three cents a share, compared with break-even per-share results a year earlier.
The results beat Juniper's guidance in April of earnings of two cents a share on revenue between $157 million and $160 million. Analysts had been expecting profit of two cents a share, according to Thomson First Call.
"The second quarter was strong," said Scott Kriens, Juniper's chairman and chief executive. "We continue to be encouraged by both the broadband momentum around the world as well as the sound financial footing of Juniper Networks in the marketplace."
Juniper makes routers that direct traffic across the Internet. In May, Mr. Kriens doesn't think the sector has stabilized and said that a further shakeout of struggling companies will likely occur. However, he said the company should be able to be profitable, even if customer spending remains flat.
Capital spending is a hot issue in the telecommunications industry, as spending has steadily declined in recent quarters while customers grapple with their own financial constraints.
In 4 p.m. trading on the Nasdaq Stock Market, Juniper shares fell 76 cents, or 5.1%, to $14.11. Juniper reported its results after the market close.
Updated July 10, 2003 4:39 p.m. |
|
