Juniper net rises amid Internet traffic growth

SAN FRANCISCO (Reuters) - Juniper Networks Inc JNPR.O, the world's second-largest network equipment maker, on Tuesday reported higher quarterly profit as telecommunications companies bought more equipment to handle growing Internet traffic.

Third-quarter net income rose to $85.1 million, or 15 cents per share, from $58.3 million, or 10 cents per share, a year earlier, and profit excluding certain items was 22 cents per share. Revenue rose to $735 million from $573.6 million.

Analysts, on average, had forecast earnings of 21 cents per share before certain items and revenue of $707.8 million, according to Reuters Estimates. They expected net income of 16 cents per share. Juniper in July said it expected third-quarter revenue of $695 million to $715 million and earnings per share of 21 cents before items.

Juniper, which makes telecommunications equipment and digital networks for businesses, has benefited from growth in online video and other Internet uses that require high-speed Web service. It competes with Cisco Systems Inc (CSCO.O), the largest maker of such equipment.

Shares of Juniper, up 88 percent this year, trade at 43 times estimated 2007 earnings per share, compared with Cisco's multiple of about 24.

(Reporting by Philipp Gollner, editing by Phil Berlowitz)