Juniper Networks reported net revenues of $1,168.2 million, an increase of 9% year-over-year and a decrease of 10% sequentially. GAAP operating margin was 5.0%, an increase from 2.6% in the first quarter of 2021, and a decrease from 11.8% in the fourth quarter of 2021.
“Business momentum remained strong and exceeded our expectations during the March quarter, with solid double-digit order growth across all customer verticals and all customer solutions,” said Juniper’s CEO, Rami Rahim. “While some of this strength speaks to the health of our markets, much of this demand can be attributed to strong execution across our product management, engineering and go-to-market organizations. We believe the technical differentiation of our customer solutions should position us to benefit from the various industry tailwinds that are likely to increase demand for network infrastructure in the years to come.”
“We delivered strong financial results during Q1, as revenue came in above the mid-point of our guidance and we met the mid-point of our non-GAAP earnings per share outlook, despite continued challenges from a supply chain perspective,” said Juniper’s CFO, Ken Miller. “Our global teams are executing extremely well and we continue to take actions to further strengthen our supply chain resilience. Based on our recent momentum, the strong backlog we’ve built and our efforts to further strengthen our supply, I remain confident in our ability to accelerate growth and improve profitability on a full-year basis.”
Juniper also noted ongoing supply chain issues. "There is a worldwide shortage of semiconductors and other components impacting many industries, caused in part by the COVID-19 pandemic. Similar to others, we are experiencing ongoing supply chain challenges, which have resulted in extended lead times, as well as elevated logistics and component costs. We continue to work to resolve supply chain challenges and have increased inventory levels and purchase commitments. We are working closely with our suppliers to further enhance our resiliency and mitigate the effects of disruptions outside of our control. We believe that even with these actions, extended lead times and elevated costs will likely persist for at least the remainder of the year. While the situation is dynamic, at this point in time we believe we will have access to sufficient supplies of semiconductors and other components to meet our financial forecast."
