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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (5523)	7/13/2001 8:10:20 AM
From: DebtBomb	Read Replies (1) \| Respond to of 208838

Hee hee, you like robbie. SCALPO is good sometimes.

To: 2MAR$ who wrote (5523)	7/13/2001 8:16:38 AM
From: 2MAR$	Respond to of 208838

Juniper Sees 3Q Pro Forma Earnings Of 9c A Share >JNPR By Hollister H. Hovey Of DOW JONES NEWSWIRES (This report was originally published late Thursday.) NEW YORK (Dow Jones)--Juniper Networks Inc. (JNPR) expects to post pro forma earnings of 9 cents a share in the third quarter, in line with analysts' consensus estimate. But revenue for the year will come in $20 million to $30 million short of Wall Street's expectations, Juniper management said. Revenues for fiscal 2001 will likely come in within the $940 million to $950 million range, Chief Financial Officer Marcel Gani said on a conference call to discuss the company's second-quarter earnings. A Thomson/First Call survey calls for $970.19 million in revenues for the year. Third-quarter revenue will be flat with the second quarter, Gani said. Gani said he expects Juniper to post fourth-quarter earnings of 10 cents a share, a penny short of analysts' views. Earlier Thursday, Juniper said its net loss for the second quarter, which includes goodwill, amortization and other items, was $37.1 million, or 12 cents a share, compared with net income of $19.6 million, or 6 cents a share, in the second quarter of 2000. Excluding those items, Juniper posted pro forma earnings of 9 cents a share in the second quarter, one cent better that Wall Street's consensus estimate and its second-quarter pro forma earnings last year. Revenue rose 79% to $202.2 million from $113.0 million last year, falling within the $200 million to $210 million range the company had expected, but short of Wall Street's $218.67 million consensus estimate. The reduced revenue guidance shows that the slowdown in capital spending by telecommunications service providers will continue to weigh on Juniper's sales. Juniper sells high-speed routers that are designed to improve the delivery of Internet traffic at the core of metropolitan area networks. That said, Juniper's visibility, or ability to predict its exact financial performance in relation to the marcoeconomic environment, remains "limited," Gani said. Gani expects the company's gross margins to hover around 60% in the near term, he said. Even if times get tough, though, management remains confident with its approach, and Chief Executive Scott Kriens is adamant that the company won't change its strategy, he said on the conference call. One large part of that strategy is a commitment to booking and maintaining large customers, Kriens said. He wouldn't comment on Juniper's market-share position against networking giant Cisco Systems Inc. (CSCO), but said he's "comfortable" with the company's win ratio and "encouraged by" its win strategy, which he believes is a better measure of the company's strength. Cisco and other competitors haven't started slashing their router prices enough, or at all, to make Juniper feel pricing pressure, Kriens said. But some of Juniper's customers are demanding cheaper prices, he said. The largest customers, like WorldCom Inc. (WCOM) and Global Crossing Ltd. (GX), continue to invest in Juniper technology, he said. WorldCom's business makes up at least 10% of Juniper's revenue, while Swedish telecom concern Ericsson (ERICY), which resells Juniper's routers, contributes at least 10% of revenue as well. Management is placing some optimism on international sales, which it expects will make up around 35% to 40% of total revenues for the year. Juniper had $1.6 billion cash on hand at the end of the second quarter. -Hollister H. Hovey; Dow Jones Newswires; 201-938-2007; hollister.hovey@dowjones.com (END) DOW JO