Juniper Networks, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter Ending March 31, 2017 and Full Year 2017
January 27, 2017 at 03:24 am IST
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Juniper Networks, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported total net revenues of $1,385.6 million against $1,319.6 million for the same period a year ago. Operating income was $298 million against $279.1 million for the same period a year ago. Income before income taxes was $282.9 million against $260.6 million for the same period a year ago. Net income was $197.4 million or $0.51 per diluted share $197.8 million or $0.51 per diluted share for the same period a year ago. Non-GAAP operating income was $366.6 million against $342.7 million for the same period a year ago. Non-GAAP net income was $254.3 million or $0.66 per diluted share against $247.6 million or $0.63 per diluted share for the same period a year ago. Net cash flows provided by operations for the fourth quarter of 2016 was $334 million, compared to net cash flows provided by operations of $245 million in the third quarter of 2016, and $117 million in the fourth quarter of 2015. Capital expenditures were $52 million.
For the year, the company reported total net revenues of $4,990.1 million against $4,857.8 million for the same period a year ago. Operating income was $900.5 million against $912.0 million for the same period a year ago. Income before income taxes was $838.2 million against $852.2 million for the same period a year ago. Net income was $601.2 million or $1.55 per diluted share against $633.7 million or $1.59 per diluted share for the same period a year ago. Non-GAAP operating income was $1,167.1 million against $1,165.7 million for the same period a year ago. Non-GAAP net income was $810.1 million or $2.09 per diluted share against $809.7 million or $2.03 per diluted share for the same period a year ago. Net cash provided by operating activities was $1,106.0 million against $892.5 million for the same period a year ago. Purchases of property and equipment were $214.7 million against $210.3 million for the same period a year ago.
For the quarter ending March 31, 2017, revenues will be approximately $1,200 million, plus or minus $30 million, non-GAAP gross margin will be approximately 62.5%, plus or minus 0.5%, non-GAAP operating margin will be approximately 19.5% at the midpoint of revenue guidance, non-GAAP tax rate approximately flat from the fourth quarter and non-GAAP net income per share will range between $0.38 and $0.44 on a diluted basis. This assumes a flat share count from the fourth quarter.
For the year 2017, the company expects revenue growth. The company intends to expand non-GAAP operating margins and non-GAAP earnings per share for fiscal year 2017. The company expects continued strong cash flow generation and intends to return on approximately 50% of free cash flow to shareholders. The gross margin guidance for the quarter reflects typical seasonal patterns, primarily due to sequentially lower revenue volume.
Juniper Networks, Inc. is one of the world's leaders in designing and marketing ultra-high-speed Internet routing equipment. The group's products are primarily intended for telecommunication service providers, government organizations, educational institutions, and research centers. The group's activity is organized around 4 families of products and services:
- networking infrastructure products: high-performance routers and broadband connection equipment;
- network switching products: Ethernet switches, data center switches, etc.;
- IT security products and solutions : firewalls, VPN systems, security housings, intrusion detectors, etc. The group also offers application acceleration solutions.
- consulting, maintenance and training services.
Net sales break down by market into enterprises (46%), service providers (33.1%) and cloud operators (20.9%).
Products are manufactured by subcontractors.
Net sales break down geographically as follows: the United States (55.1%), the Americas (4.8%), Europe/Middle East/Africa (25.3%) and Asia/Pacific (14.8%).
Juniper Networks, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter Ending March 31, 2017 and Full Year 2017