Juniper Networks reported Q3 2019 net revenues of $1.133.1 billion, a decrease of 4% year-over-year, and an increase of 3% sequentially. GAAP operating margin was 12.2%, a decrease from 13.6% a year earlier and an increase from 7.5% in the preceding quarter.
GAAP net income was $99.3 million, a decrease of 56% year-over-year, and an increase of 115% sequentially, resulting in diluted earnings per share of $0.29.
Non-GAAP net income was $166.6 million, a decrease of 13% year-over-year, and an increase of 19% sequentially, resulting in non-GAAP diluted earnings per share of $0.48.
“We believe we are executing well in a dynamic environment," said Rami Rahim, Juniper’s, Chief Executive Officer. “While we are encouraged to see improved momentum with our Cloud customers, Service Provider spending remains challenged and we experienced weaker than expected Enterprise orders in the September quarter. Despite this backdrop, we still expect to deliver modest year-over-year growth during the December quarter and remain optimistic regarding our long-term growth prospects.”
Some highlights (yoy comparisons):
- Cloud increased 6% and Enterprise increased 8%, while
- Service Provider declined 17%. The lower than mid-point revenue result was due to greater than anticipated Service Provider weakness.
- On a sequential basis, Enterprise increased 10%, Service Provider increased 1% and Cloud was down 5%.
- Routing decreased 18% year-over-year and 2% sequentially. Switching increased 9% year-over-year and 12% sequentially.
- Security increased 22% year-over-year and 16% sequentially. Our Services business increased 1% year-over-year and was flat sequentially.
- Software revenue increased 13% year-over-year and was approximately 10% of total revenue.
- Of the top 10 customers for the quarter, three were Cloud, six were Service Provider, and one was an Enterprise
