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

To: Ibexx who wrote (3084)	3/8/2002 12:45:20 AM
From: Rich Wolf	Read Replies (1) \| Respond to of 3350

9:29AM Juniper Networks downgraded by CE Unterberg (JNPR) 12.29: CE Unterberg Towbin downgrades to long-term MKT PERFORM from Buy. Reduces 2002 est to ($0.02) from $0.20 and 2003 to $0.15 from $0.48. Changes driven by near-term service provider cap-ex issues and lack of spending catalysts. Juniper to Miss 1st-Quarter Estimates, Analyst Says (Update2) By Scott Lanman Sunnyvale, California, March 7 (Bloomberg) -- Juniper Networks Inc., the world's second-largest maker of equipment to direct Internet traffic, will miss first-quarter sales and profit targets as customers reduce spending, an analyst said. C.E. Unterberg Towbin analyst Martin Pyykkonen said in a research note that he expects a loss, excluding some expenses, of 2 cents a share, on revenue of $105 million. Pyykkonen previously forecast a profit of 3 cents a share on sales of $152.5 million. He cut his long-term rating to ``market perform'' from ``buy.'' Juniper sells its products exclusively to telecommunications companies, many of which have pared spending this year. The Sunnyvale, California-based company's biggest customers include WorldCom Inc. and Qwest Communications International Inc. Top rival Cisco Systems Inc. has recently regained market share from Juniper by selling more routers to corporate clients. ``There's nothing specific (Juniper) can do except be prudent and tightly manage costs,'' Pyykkonen said in an interview. He doesn't personally own Juniper stock. The shares are valued at $7 to $9 based on his targets, Pyykkonen wrote. They rose 28 cents to $12.57 and have plunged 79 percent in the past year. Juniper spokeswoman Kathy Durr said Pyykkonen's note is ``not something that we would comment on.'' Company Forecast The company said in January that first-quarter profit, excluding acquisition expenses and other costs, will be 3 cents a share on revenue of $150 million to $155 million. The average estimate of analysts polled by Thomson Financial/First Call is for profit of 3 cents on revenue of $148.4 million. If Juniper reports a first-quarter loss on that basis, it would be the company's first since the third quarter of 1999. In the year-ago first quarter, Juniper had net income of $58.6 million, or 17 cents a share. Trusco Capital Management technology analyst Christian Koch said he also expects Juniper to miss its first-quarter forecast, though sales probably won't be as low as Pyykkonen predicts. Trusco doesn't own Juniper shares. ``The bloom is off the rose now,'' Koch said. ``You no longer will have this high valuation level based on sales or earnings on the company because the track record is broken and the long-term business model is going to be called into question.'' Pyykkonen also reduced his 2002 revenue estimate to $463 million from $678 million and his profit forecast to 2 cents a share from 20 cents.