CORRECTED-UPDATE 1-Juniper forecasts third-qtr results below market estimates

Tue Jul 22, 2014 6:52pm EDT

(Corrects paragraph 7 to say revenue rose 7 percent, not adjusted profit)

* Sees Q3 earnings $0.35-$0.40/shr vs est $0.44

* Sees Q3 revenue $1.15 bln-$1.2 bln vs est $1.26 bln

* Shares down 5 pct in extended trading

July 22 (Reuters) - Network gear maker Juniper Networks Inc forecast third-quarter revenue and profit below analysts' expectations, citing delays in closing sales deals at some North American customers.

Juniper shares were down 5 percent at $23.59 in extended trading on Tuesday.

"Specifically, within U.S.-based service providers, their market dynamics including M&A activities are impacting both sequencing and timing of projects," Chief Executive Shaygan Kheradpir said on a post-earnings conference call.

Juniper, whose clients include Verizon Communications Inc and AT&T Inc, forecast adjusted profit of 35-40 cents per share on revenue of $1.15 billion-$1.2 billion.

Analysts on average were expecting a profit of 44 cents on revenue of $1.26 billion, according to Thomson Reuters I/B/E/S.

Rival Riverbed Technology Inc warned last week its second-quarter adjusted revenue would miss its forecast because of delays in closing some large North American deals.

Juniper, however, reported a better-than-expected 7 percent rise in revenue for the second quarter, as telecom carriers spend more to ramp up networks.

Net income rose to $221.1 million, or 46 cents per share, in the quarter ended June 30, from $97.9 million, or 19 cents per share, a year earlier.

Excluding items, the company earned 40 cents per share.

Revenue rose to $1.23 billion from $1.15 billion.

Analysts on average had expected a profit of 38 cents on revenue of $1.22 billion.

Juniper also said it would sell its Junos Pulse product portfolio to Siris Capital for about $250 million and repurchase a minimum of $550 million of common stock in addition to its existing $1.2 billion buyback plan. (Reporting by Abhirup Roy in Bangalore; Editing by Joyjeet Das and Don Sebastian)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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