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Technology Stocks : Juniper Networks - JNPR -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (1697)	10/12/2000 8:17:46 PM
From: Bruce Brown	Read Replies (6) \| Respond to of 3350

Here are some of my notes as I listened to the live CC. • 78% sequential quarterly growth • 778 units sold and over 10K ports shipped • Customer diversification to 136 up from 113 last quarter (total 225 customers which they will not be able to track as closely anymore due to reseller sales and diversification growing) • Each large customer, due to the diversification of customers, becomes less and less a percentage of total revenues • Sustainable company now with a family of products. New JUNOS software. It's not simply a hardware game, but a software intensive game.... B2B and B2C driving broadband. Hmmm - I like that....being that i2, Ariba and C1 are holdings of mine. • 7 major release of software over the past two years. • customers in 30 countries • First 200 Million quarter and first 100 Million quarter in 2000 • Cisco is the only competitor and Juniper remains respectful of them and considers them the only other student in the class. • $201.2 Million revenue • Book to bill greater than 1 • No revenue from M5 and M10 during the quarter • 29% international revenue, down from 34% last quarter • 78% sequential, up from 70% sequential last quarter • $625 - 640 Million in 2001 is the guidance Dang, I just got cut off due to net congestion .... • 16 - 18% R&D is the new target • Aggressive hiring expansion will increase expenses to build out the global sales force • 39% operating margin up due to greater than expected revenue growth • target gross margin 62 - 65% is the new model for end of year 2001 • 29% net income • Cash $1.6 Billion (up $53 Million) • Due to parts shortages early in the Q, DSO was up a few days, but they still managed okay • Evaluating carrying inventory in response to the strong demand as well as the parts shortages experienced at the beginning of Q3 which increased the DSO • OC 48's are in full swing and moving to OC 192's by some is happening faster than any previous transitions, but is not yet the majority of circuits - 48's are. • Nortel relationship shows activity in selling Juniper, but it's below 10% of revenues or any of Juniper's single largest customer • ASP's rose up to $260K due to the strength of the M160 and high speed interface demand. That will go down as the M5 and M10 revenues start to roll in this quarter as they sell for less. • All three products were significant to the revenue contributions - M40/M60/M160 • Competition for the 5 and 10 series is ___________ • Cisco and Juniper are it for competition now - no room for third due to the complexity issues of interoperability. That's not to say that Cisco and Juniper will be the last two standing at the end of the game, but they are it for now. • PJ jumped in with some gorilla gaming chit chat trying to make the case that Cisco has not responded to any of Juniper's products and software update releases to date. Scott answered back with respect for Cisco and says Juniper is not taking Cisco lightly. They also say that Cisco is not going to give the space up lightly. I take it PJ wanted Scott to do some cheerleading and say we're kicking butt, but Scott refused to lose respect for Cisco in his comments. He maintains that Juniper and Cisco are 'thee' players. • Interoperability is critical for the carriers and the customers are under tremendous growth pressures as the network is built out. Tremendous growth pressures.... Hmmmm....I like that. • 581% y/y revenue growth • 2001 revenues will be double • 78% direct sales and the rest through the indirect channel. Margins are the same for both. • Every analyst said congratulations on the great quarter. • shareholders, investors and customers were thanked. BB