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

To: Ibexx who wrote (3063)	3/4/2002 3:33:06 PM
From: Ibexx	Read Replies (2) \| Respond to of 3350

Special report: Juniper makes gains in core and edge router markets - February 26, 2002 NetworkWatch News Despite the stomach-churning slowdown in the core router market in North America, there was good news for Juniper Networks. In the overall market, sales in North America plummeted 30% to $1.0 billion from 2000 to 2001. Nonetheless, Juniper won significant share against Cisco during the period, taking 31% of the market, up from 21% in 2000. Cisco’s lead in North America slipped from 78% to 64%. Avici also edged up, from 1% to 5%. Worldwide, Cisco’s dominance remains unchallenged. In the $1.7-billion worldwide market, it leads with a 69% share, followed by Juniper with 28% and Avici with 3%. <Pie chart> The shift away from Cisco in the domestic market is surprising given the flurry of product enhancements the vendor delivered last year, which included a OC-192 card for the 12000 series. But though Juniper has established itself as a strong contender, a stagnant market will make further gains difficult. Last year, carriers delayed and re-evaluated network upgrade plans, scaling back capital expenditures and focusing on maximum utilization in the core. Quarterly revenues in North America were flat through 2001, with unit sales 8% lower than in 2000. Lower ASPs exacerbated the revenue decline, causing the 30% drop in 2001. With no new wide-scale deployments, there was little change in the market share picture overall and not much more expected for 2002. Quarterly growth rates in Europe and Asia suggest the slowdown has reached international markets. Core router sales in these regions were strongest early in the year, but comprised a smaller share of worldwide revenue in the second half. Edge aggregation - a rare bright spot Juniper also made significant progress in the North American IP aggregation market, tripling its share from 6% in 2000 to 19% in 2001. Unisphere’s share also increased, from 2% in 2000 to 7%. Cisco’s share fell by a corresponding amount, from 93% to 74%. <Pie chart> The IP edge is a rare bright spot in the telecommunications market today. Globally, edge IP routers surpassed core IP routers in terms of annual revenue, reaching $2.0 billion in 2001, with North America generating nearly half of the total. Cisco dominated all regional markets and captured 73% of global revenue. Juniper ranks second in the world, with 13% market share; Unisphere ranks third with 10%. Ericsson’s international strength helped it capture a 4% global share. With the core router market stagnating as carriers work through excess capacity, vendors are increasing their focus on the edge. Service providers are demanding expanded functionality, but are unwilling to sacrifice speed or reliability. Cisco and Juniper are responding to this challenge by expanding and enhancing their edge product lines, while Unisphere is focusing solely on offering advanced capabilities at the edge. This preview contains highlights of RHK’s forthcoming Switching & Routing: Edge IP Devices Global 2001 Market Share Report, scheduled for publication later this quarter. The IP edge market includes sales of IP aggregation routers, session managers and service creation systems. For more information, contact info@rhk.com networkwatch.rhk.com Ibexx