Juniper Networks, INC. Reports Q1’07 Financial Results

Juniper Networks, Inc. (NASDAQ: JNPR) today reported its results for the first quarter ended March 31, 2007.

Net revenues for the first quarter of 2007 were $626.9 million, compared with $566.7 million for the first quarter of 2006, an increase of 11 percent.

Net income on a GAAP basis for the first quarter of 2007 was $66.6 million or $0.11 per share, compared with a GAAP net income of $75.8 million or $0.13 per share for the first quarter of 2006. Non-GAAP net income for the first quarter of 2007 was $112.4 million or $0.19 per share, compared with non-GAAP net income of $113.4 million or $0.19 per share for the first quarter of 2006. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Product Revenue by Operating Segment table.

Net cash flows from operations for the first quarter of 2007 were $152.6 million, compared to cash provided by operations of $138.6 million for the first quarter of 2006.

Capital expenditures and depreciation during the first quarter of 2007 were $32.4 million and $22.2 million, respectively.

“Our first quarter results were in line with our expectations,” said Scott Kriens, Juniper Networks’ Chairman and CEO. “We continue to see a solid opportunity for Juniper moving forward and remain focused on meeting the strategic needs of our customers and sharpening our execution.”

Highlights:
Continued focus on execution was reflected across all aspects of Juniper’s business in the first quarter.

As service providers continue their next generation network build-outs Juniper realized strength in the adoption of the T- and M-series routers. Virgin Media Group, the UK’s largest cable operator, deployed T-series core routers, including the multi-terabit TX Matrix, to upgrade its IP backbone network. In addition, through partner Nokia Siemens Networks the South African Second National Operator (SNO) Neotel, Johannesburg is building out a nationwide IP core network utilizing Juniper Networks T-and M-series routers. At the network edge we realized strength across the E-series as well as expanding interest in the MX960 Ethernet Services Router.

Juniper introduced a portfolio of open and scalable Session and Resource Control (SRC) solutions that provide comprehensive subscriber management capabilities, enabling service providers to ensure a high-quality user experience for multiplay and mobile services in next generation networks.

The company realized increased adoption of Juniper security products as service providers strive to deliver enhanced security across their networks and services. T-Mobile Austria will secure network traffic with Juniper’s integrated security products and BT Plc selected Juniper Networks M-and J-series routers and security solutions for the UK’s Defence Fixed Telecommunications Service project.

In the enterprise the company experienced increased acceptance of Juniper integrated security platforms with particular strength across the Integrated Security Gateway (ISG) with Intrusion Detection and Prevention (IDP) and Secure Services Gateway (SSG) products. The Juniper Networks SSG was bestowed the “Best Security Product 2007” from UK published Network Computing and the ISG with IDP earned the Information Security “Hot Pick” award.

Juniper Networks M-and J-series routers gained continued acceptance in the enterprise and the Philadelphia Stock Exchange selected the M-series for the roll out of their brand new Institutional Regional Optical Network. This new high performance network positions the Exchange to be one of the fastest and most reliable trading venues in the world.

From a channel perspective both VARBusiness and GovernmentVAR magazines recognized Juniper as a “5-Star Partner” for the high quality of Juniper J-partner programs across the commercial and public sectors. From a partner perspective we announced the readiness of a joint voice over Internet protocol (VOIP) solution with Avaya that embeds a media gateway into the telephony-ready Juniper Networks J-series routers for branch office deployments.

Juniper Networks will host a conference call web cast today, April 23, 2007 at 1:45 p.m. (Pacific Time), to be broadcasted live over the Internet http://www.juniper.net/company/investor/conferencecall.html. The conference call will be archived on the Juniper Networks website until May 23, 2007. A replay will be accessible by telephone on April 23, 2007 after 4:00 p.m. Pacific Time through April 30, 2007 by dialing 800-633-8284 (or 402-977-9140), reservation number, 21333911. The replays will be available 24 hours/day, including weekends.