Juniper Networks reported net revenues of $1,222.6 million for the quarter ended December 31, 2020, an increase of 1% year-over-year, and an increase of 7% sequentially. Non-GAAP net income was $181.8 million, a decrease of 9% year-over-year, and an increase of 26% sequentially, resulting in non-GAAP diluted earnings per share of $0.55.
“We experienced better than expected Q4 demand and ended 2020 on a high note by delivering a second consecutive quarter of year-over-year revenue growth,” said Juniper’s CEO, Rami Rahim. “Despite the various challenges presented by the pandemic, we achieved many of the objectives we laid out earlier in the year, which included growing our enterprise business for a fourth consecutive year, growing our cloud business for a second consecutive year and stabilizing our service provider business. We believe these outcomes are a direct result of the strategic actions we have taken, which should position us for sustainable full-year revenue growth starting this year.”
“We executed well in the December quarter and were able to exceed our revenue and non-GAAP EPS targets,” said Juniper’s CFO, Ken Miller. “We are entering the new year with strong backlog and healthy momentum across each of our core industry verticals. We believe the investments we have made in 2020 to strengthen our technology portfolio and go-to-market organization will not only position us to deliver long-term growth, but also improved profitability over time.”
Some highlights:
Routing product revenue: $462 million, up 9% year-over-year and up 7% sequentially. The year-over year increase was driven by Enterprise and Cloud, partially offset by a decline in Service Provider. The sequential increase was primarily driven by Enterprise, and to a lesser extent, Cloud, offset by a decline in Service Provider. Both MX and PTX product families grew year-over-year and sequentially.
Switching product revenue: $261 million, down 2% year-over-year and up 14% sequentially. The yea rover-year decrease was driven by Cloud, partially offset by growth in Enterprise and Service Provider. The sequential increase was driven by all verticals. The QFX product family decreased year-over-year and grew sequentially. The EX product family grew year-over-year and sequentially.
Security product revenue: $87 million, down 14% year-over-year and up 19% sequentially. The yearover-year decrease was primarily due to Service Provider, and to a lesser extent, Cloud and Enterprise. The sequential increase was primarily driven by Enterprise.
Service revenue: $412 million, down 1% year-over-year and up 2% sequentially. The year-over-year decline and sequential increase was primarily driven by timing of renewals.
By vertical
Cloud: $281 million, slightly up year-over-year and up 11% sequentially. The slight year-over-year increase was driven by Routing and to a lesser extent, Services, offset by a decline in Switching and
Security. The sequential increase was primarily driven by Switching, and to a lesser extent, Services and Routing, partially offset by a decline in Security.
Service Provider: $475 million, down 4% year-over-year and essentially flat sequentially. The year-over year decrease was primarily due to Services. The sequential change was primarily due to a decline in Services, partially offset by growth in Switching and Security.
Enterprise: $467 million, up 7% year-over-year and up 14% sequentially. The year-over-year increase was primarily driven by Routing, and to a lesser extent, Switching and Services, partially offset by a decline in Security. The sequential increase was driven by all products and services.
Some other notes
- Juniper cites progress on 400G, noting that it currently has more than 100 wins for 400G capable products.
- Juniper said software accounted for 12% of total revenue in Q4, primarily driven by the adoption of Mist cloud and other software-based subscription offerings. The company expects software sales to continue to grow especially given its recent acquisitions of 128 Technology, Netrounds and Apstra.
- In total, Mist wireless LAN, Wired Assurance, Marvis Virtual Network Assistant and Associated EX pull through generated over $150 million in 2020.
https://s1.q4cdn.com/608738804/files/doc_financials/2020/q4/Q4'20-CFO-Commentary.pdf
