EXHIBIT 99.1
INVESTOR RELATIONS CONTACTS: PUBLIC RELATIONS CONTACTS:
Randi Paikoff Feigin Kathy Durr
Tel: 408-745-2371 Tel: 408-745-5058
randi@juniper.net kdurr@juniper.net
JUNIPER NETWORKS, INC. REPORTS Q1'03 FINANCIAL RESULTS
NET REVENUE $157.2M; GAAP EPS $0.01; NON-GAAP EPS $0.02
Sunnyvale, CA - April 10, 2003 -- Juniper Networks, Inc. (NASDAQ: JNPR) today
reported its first quarter results for the period ending March 31, 2003.
Net revenues for the first quarter were $157.2 million, compared with $122.2
million for the same period last year, an increase of 29%.
GAAP net income for the first quarter was $3.7 million or $0.01 per share,
compared with a net loss of $46.0 million or $0.14 per share in the first
quarter of 2002. Non-GAAP net income, which excludes amortization of purchased
intangibles and deferred compensation and a gain on the sale of investments, was
$6.3 million or $0.02 per share, compared with non-GAAP net income of $0.4
million or $0.00 per share in the first quarter of 2002.
Cash provided by operations was $12.4 million for the first quarter, compared to
cash provided by operations of $12.0 million in the first quarter of 2002.
"The first quarter was solid," said Scott Kriens, Chairman and CEO of Juniper
Networks. "We are in a unique position to help our customers transform their
business of networking."
ABOUT JUNIPER NETWORKS
Juniper Networks transforms the business of networking by converting a commodity
- - bandwidth - into a dependable, secure, and highly valuable corporate asset.
Founded in 1996 to meet the stringent demands of service providers, Juniper
Networks is now relied upon by the world's leading network operators, government
agencies, research and education institutions, and information intensive
enterprises as the foundation for uncompromising networks. Juniper Networks is
headquartered in Sunnyvale, California. Additional information can be found at
www.juniper.net.
Juniper Networks is registered in the U.S. Patent and Trademark Office and in
other countries as a trademark of Juniper Networks, Inc. Broadband Cable
Processor, ERX, ESP, G1, G10, G-series, Internet Processor, JUNOS, JUNOScript,
M5, M10, M20, M40, M40e, M160, M-series, NMC-RX, SDX, ServiceGuard, T320, T640,
T-series, UMC, and Unison are trademarks of Juniper Networks, Inc. All other
trademarks, service marks, registered trademarks, or registered service marks
are the property of their respective owners.
Actual results could differ materially from those anticipated in forward-looking
statements in this release as a result of certain factors, including those set
forth in the risk factors described in the Company's SEC filings, including its
most recent Form 10K.
1
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2003 2002
----------- -----------
(unaudited) (A)
ASSETS
Current assets:
Cash and cash equivalents $ 250,342 $ 194,435
Short-term investments 305,687 384,036
Accounts receivable, net 84,508 78,501
Prepaid expenses and other current assets 26,331 23,957
----------- -----------
Total current assets 666,868 680,929
Property and equipment, net 259,317 266,962
Long-term investments 625,796 583,664
Goodwill 987,661 987,661
Purchased intangible assets, net and other long-term assets 88,188 95,453
----------- -----------
Total assets $ 2,627,830 $ 2,614,669
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 61,729 $ 51,747
Accrued warranty 31,948 32,358
Other accrued liabilities 94,705 111,773
Deferred revenue 51,558 46,146
----------- -----------
Total current liabilities 239,940 242,024
Convertible subordinated notes 942,114 942,114
Stockholders' equity:
Common stock and additional paid-in capital 1,472,275 1,461,910
Deferred stock compensation (8,195) (11,113)
Accumulated other comprehensive income 15,331 17,052
Accumulated deficit (33,635) (37,318)
----------- -----------
Total stockholders' equity 1,445,776 1,430,531
----------- -----------
Total liabilities and stockholders' equity $ 2,627,830 $ 2,614,669
=========== ===========
(A) The balance sheet at December 31, 2002 has been derived from the audited
consolidated financial statements at that date.
2
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended March 31,
---------------------------
2003 2002
--------- ---------
Net revenues:
Product $ 135,174 $ 104,546
Service 22,033 17,673
--------- ---------
Total net revenues 157,207 122,219
Cost of revenues:
Product 48,371 39,711
Service 12,980 10,285
--------- ---------
Total cost of revenues 61,351 49,996
--------- ---------
Gross profit 95,856 72,223
Operating expenses:
Research and development 43,470 35,069
Sales and marketing 32,984 27,578
General and administrative 7,472 9,549
Amortization of purchased intangible
assets and deferred stock compensation 7,522 15,275
--------- ---------
Total operating expenses 91,448 87,471
--------- ---------
Operating income (loss) 4,408 (15,248)
Interest income 9,252 16,752
Interest expense (11,949) (15,132)
Gain on sale of investments 4,352 --
Write-down of investments -- (30,600)
Equity in net loss of joint venture -- (1,025)
--------- ---------
Income (loss) before income taxes 6,063 (45,253)
Provision for income taxes 2,380 750
--------- ---------
Net income (loss) $ 3,683 $ (46,003)
========= =========
Net income (loss) per share:
Basic $ 0.01 $ (0.14)
--------- ---------
Diluted $ 0.01 $ (0.14)
--------- ---------
Shares used in computing net income (loss) per share:
Basic 375,549 329,367
========= =========
Diluted 390,947 329,367
========= =========
3
JUNIPER NETWORKS, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (1)
(in thousands, except per share amounts)
(unaudited)
Three months ended March 31,
---------------------------
2003 2002
--------- ---------
Net revenues:
Product $ 135,174 $ 104,546
Service 22,033 17,673
--------- ---------
Total net revenues 157,207 122,219
Cost of revenues:
Product 48,371 39,711
Service 12,980 10,285
--------- ---------
Total cost of revenues 61,351 49,996
--------- ---------
Gross profit 95,856 72,223
Operating expenses:
Research and development 43,470 35,069
Sales and marketing 32,984 27,578
General and administrative 7,472 9,549
--------- ---------
Total operating expenses 83,926 72,196
--------- ---------
Operating income 11,930 27
Interest income 9,252 16,752
Interest expense (11,949) (15,132)
Equity in net loss of joint venture -- (1,025)
--------- ---------
Income before income taxes 9,233 622
Provision for income taxes 2,955 199
--------- ---------
Net income $ 6,278 $ 423
========= =========
Net income per share:
Basic $ 0.02 $ 0.00
========= =========
Diluted $ 0.02 $ 0.00
========= =========
Shares used in computing net income per share:
Basic 375,549 329,367
========= =========
Diluted 390,947 342,831
========= =========
(1) The non-GAAP statements exclude the impact of the amortization of
purchased intangibles and deferred stock compensation, the gain from the
sale of investments and the impairment write-down of investments in all
applicable periods. See reconciliation to GAAP information on page 5.
4
JUNIPER NETWORKS, INC.
RECONCILIATION OF NON-GAAP TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands)
Three months
ended March 31,
--------------------------
2003 2002
-------- --------
Non-GAAP net income $ 6,278 $ 423
Amortization of purchased intangible assets and deferred stock compensation (7,522) (15,275)
Gain on sale of investments 4,352 --
Write-down of investments -- (30,600)
Income tax effect 575 (551)
-------- --------
GAAP net income (loss) $ 3,683 $(46,003)
======== ========
5
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended March 31,
---------------------------
2003 2002
--------- ---------
OPERATING ACTIVITIES:
Net income (loss) $ 3,683 $ (46,003)
Adjustments to reconcile net income (loss) to net cash from operating
activities:
Depreciation 12,867 8,171
Amortization of purchased intangibles and deferred stock compensation 7,522 16,229
Amortization of debt related charges 778 --
Gain on sale of investments (4,352) --
Write-down of investments -- 30,600
Changes in operating assets and liabilities:
Accounts receivable (6,007) 37,608
Prepaid expenses, other current assets and other long-term assets (5) 3,717
Accounts payable 9,982 (23,290)
Accrued warranty (410) (864)
Other accrued liabilities (17,068) (7,970)
Deferred revenue 5,412 (6,214)
--------- ---------
Net cash provided by operating activities 12,402 11,984
INVESTING ACTIVITIES:
Purchases of property and equipment, net (5,222) (5,776)
Purchases of available-for-sale investments (163,723) (331,840)
Maturities and sales of available-for-sale investments 201,386 417,566
Minority equity investments -- (1,000)
--------- ---------
Net cash provided by investing activities 32,441 78,950
FINANCING ACTIVITIES:
Proceeds from issuance of common stock 11,064 7,405
--------- ---------
Net cash provided by financing activities 11,064 7,405
--------- ---------
Net increase in cash and cash equivalents 55,907 98,339
--------- ---------
Cash and cash equivalents at beginning of period 194,435 606,845
--------- ---------
Cash and cash equivalents at end of period $ 250,342 $ 705,184
========= =========
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest $ 22,375 $ 27,313
6