Juniper's revenue rises as telecom clients ramp up networks
(Reuters) - Network gear maker Juniper Networks Inc (JNPR.N) reported a higher-than-expected 10 percent rise in quarterly revenue as U.S. telecom carriers spent more to ramp up their networks to manage increasing data traffic on smartphones and tablets.
U.S. consumers will download and upload more data on their smartphones in 2018 than they did on their laptops in 2013, according to a February report by Cisco Systems Inc (CSCO.O).
Juniper's revenue from telecom customers, including Verizon Communications Inc (VZ.N) and AT&T Inc (T.N), rose about 10 percent in the first quarter ended March 31.
The telecom services business accounted for more than two-thirds of Juniper's total revenue.
Separately, AT&T said on Tuesday that it was adding Juniper as a supplier for its cloud network expansion program.
Juniper forecast an adjusted profit of 36-39 cents per share and revenue of $1.20 billion-$1.23 billion for the second quarter ending June 30.
Analysts on average were expecting a profit of 36 cents per share on revenue of $1.21 billion, according to Thomson Reuters
Juniper, which has been under pressure from investors Elliott Management Corp and Jana Partners LLC to focus on its fast-growing networking business, said in February that it would cut $160 million in costs annually.
Earlier this month, Juniper said it would reduce its workforce by 6 percent as part of the plan.
MKM Partners analyst Michael Genovese said there was a possibility the company could announce further job cuts.
"I don't think they have done all the cuts they need to do to get to $160 million in savings," he said. "I think there will be (further) small cuts ... maybe 2 percent (of workforce) as they really get out of some of the lower-end products."
Juniper's net income rose to $110.6 million, or 22 cents per share, in the first quarter from $91.0 million, or 18 cents per share, a year earlier.
Revenue rose 10.4 percent to $1.17 billion.
Excluding items, the company earned 29 cents per share. Juniper took a restructuring charge of $122 million in the quarter.
Analysts on average had expected a profit of 29 cents per share on revenue of $1.15 billion.
The company bought back shares worth $900 million in the first quarter as part of a program to repurchase stock worth $3 billion over three years.
Juniper's shares were little changed in extended trading. The stock, which has risen about 15 percent this year, closed at $25.89 on the New York Stock Exchange on Tuesday.
(Editing by Kirti Pandey)