* 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
(Adds company executive comments, details)
By Abhirup Roy
July 22 Juniper Networks Inc forecast
current-quarter revenue and profit below analysts' expectations,
citing delays in closing the sale of its routing devices to some
customers in North America.
Juniper's shares fell 5 percent in extended trading.
Chief Executive Shaygan Kheradpir said "market dynamics",
including mergers and acquisitions, were impacting the timing of
projects undertaken by some U.S.-based service providers to
which Juniper sells its network equipment.
"The impact is going to be more on our routing, rather than
switching and security," he said on a post-earnings conference
Routing accounts for more than two-thirds of the revenue
that Juniper earns from selling its products. The company's
customers include Verizon Communications Inc and AT&T Inc
Juniper is not alone in experiencing delays. Rival network
gear maker Riverbed Technology Inc said last week that
its second-quarter adjusted revenue would miss its forecast
because of delays in closing some large North American deals.
Juniper expects the impact of these delays to continue into
the fourth quarter, Chief Financial Officer Robyn Denholm said
on the call.
The company, however, expects full-year revenue to grow,
said Kathleen Nemeth, vice-president of investor relations.
For the third quarter now under way, Juniper forecast
adjusted profit of 35 to 40 cents per share on revenue of $1.15
billion to $1.2 billion.
Analysts on average were expecting a third-quarter profit of
44 cents per share on revenue of $1.26 billion, according to
Thomson Reuters I/B/E/S.
For the second quarter ended June 30, Juniper reported
revenue of $1.23 billion, a better-than-expected 7 percent rise,
as telecom carriers spent more on ramping up networks. Net
income more than doubled to $221.1 million.
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.
The company declared its first ever quarterly dividend of 10
cents per share, which will be paid out on Sept. 23.
Juniper's stock has risen nearly 10 percent from the start
of the year to Tuesday's close of $24.82.
(Additional reporting by Subrat Patnaik; Editing by Joyjeet
Das, Don Sebastian and Robin Paxton)