EXHIBIT 99.1
INVESTOR RELATIONS CONTACT: PUBLIC RELATIONS CONTACT:
RANDI PAIKOFF FEIGIN KATHY DURR
Tel: 408-745-2371 Tel: 408-745-5058
randi@juniper.net kdurr@juniper.net
JUNIPER NETWORKS, INC. REPORTS Q2'03 FINANCIAL RESULTS
NET REVENUE $165.1M; GAAP EPS $0.03; NON-GAAP EPS $0.03
Sunnyvale, CA - July 10, 2003 -- Juniper Networks, Inc. (NASDAQ: JNPR) today
reported its second quarter results for the period ending June 30, 2003.
Net revenues for the second quarter were $165.1 million, compared with $117.0
million for the same period last year, an increase of 41 percent.
GAAP net income for the second quarter was $13.6 million or $0.03 per share,
compared with a GAAP net income of $6.2 million or $0.02 per share in the second
quarter of 2002. Non-GAAP net income, which excludes an adjustment to the
purchase price of an acquisition, the amortization of purchased intangibles and
deferred compensation, the gain on the sale of investments and the gain on the
partial retirement of the convertible subordinated notes was $10.3 million or
$0.03 per share, compared with non-GAAP net income of $0.4 million or $0.00 per
share in the second quarter of 2002.
Net revenues for the six months ended June 30, 2003 were $322.3 million,
compared with $239.3 million for the same period last year, an increase of 35
percent.
GAAP net income for the six months ended June 30, 2003 was $17.3 million or
$0.04 per share, compared with a GAAP net loss of $39.8 million or $0.12 per
share for the same period last year. Non-GAAP net income, which excludes an
adjustment to the purchase price of an acquisition, the amortization of
purchased intangibles and deferred compensation, the gain on the sale of
investments, the write-down of investments and the gain on the partial
retirement of the convertible subordinated notes was $16.6 million or $0.04 per
share, compared with non-GAAP net income of $0.8 million or $0.00 per share for
the same period last year.
Cash provided by operations was $60.3 million for the second quarter, which
brings cash provided by operations for the six months ended June 30, 2003 to
$72.7 million, compared to cash provided by operations of $39.9 million for the
six months ended June 30, 2002.
"The second quarter was strong," said Scott Kriens, chairman and CEO of Juniper
Networks. "We continue to be encouraged by both the broadband momentum around
the world as well as the sound financial footing of Juniper Networks in the
marketplace."
Juniper Networks will host a conference call web cast today, July 10, 2003 at
1:45 p.m. PT/4:45 p.m. ET at:
http://www.juniper.net/company/investor/conferencecall.html. In addition, there
will be an audio replay available through August 10, 2003 at
http://www.juniper.net/company/investor/conferencecall.html or you can call the
replay at 800-633-8284 (or 402-977-9140) and enter the reservation number,
21154140, through July 17, 2003. The replays will be available 24 hours/day,
including weekends.
1
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, E-series, G1, G10, G-series, Internet Processor, Juniper
Your Net, 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.
2
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2003 December 31, 2002
------------- -----------------
(unaudited) (A)
ASSETS
Current assets:
Cash and cash equivalents $ 516,493 $ 194,435
Short-term investments 315,870 384,036
Accounts receivable, net 73,767 78,501
Prepaid expenses and other current assets 25,681 23,957
----------- -----------
Total current assets 931,811 680,929
Property and equipment, net 252,666 266,962
Long-term investments 698,618 583,664
Goodwill 983,397 987,661
Purchased intangible assets, net and other long-term assets 113,808 95,453
----------- -----------
Total assets $ 2,980,300 $ 2,614,669
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 58,109 $ 51,747
Accrued warranty 31,727 32,358
Other accrued liabilities 113,386 111,773
Deferred revenue 55,319 46,146
----------- -----------
Total current liabilities 258,541 242,024
Convertible subordinated notes 839,994 942,114
Convertible senior notes 400,000 --
Commitments and contingencies
Stockholders' equity:
Common stock and additional-paid-in-capital 1,495,981 1,461,910
Deferred stock compensation (5,357) (11,113)
Accumulated other comprehensive income 11,198 17,052
Accumulated deficit (20,057) (37,318)
----------- -----------
Total stockholders' equity 1,481,765 1,430,531
----------- -----------
Total liabilities and stockholders' equity $ 2,980,300 $ 2,614,669
=========== ===========
(A) The balance sheet at December 31, 2002 has been derived from the audited
consolidated financial statements at that date.
3
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
Net revenues:
Product $141,067 $ 99,012 $276,241 $203,558
Service 24,036 18,024 46,069 35,697
-------- -------- -------- --------
Total net revenues 165,103 117,036 322,310 239,255
Cost of revenues:
Product 48,803 36,153 97,174 75,864
Service 13,627 12,002 26,607 22,287
-------- -------- -------- --------
Total cost of revenues 62,430 48,155 123,781 98,151
-------- -------- -------- --------
Gross profit 102,673 68,881 198,529 141,104
Operating expenses:
Research and development 43,007 33,770 86,477 68,839
Sales and marketing 33,710 25,894 66,694 53,472
General and administrative 7,296 9,104 14,768 18,653
Amortization of purchased intangible assets and
deferred stock compensation (1) 7,803 (6,362) 15,325 8,913
-------- -------- -------- --------
Total operating expenses 91,816 62,406 183,264 149,877
-------- -------- -------- --------
Operating income (loss) 10,857 6,475 15,265 (8,773)
Interest and other income 10,017 15,380 19,269 32,132
Interest and other expense (12,354) (14,763) (24,303) (29,895)
Gain on sale of investments 4,387 -- 8,739 --
Write-down of investments -- -- -- (30,600)
Gain on retirement of convertible subordinated
notes 4,888 -- 4,888 --
Equity in net loss of joint venture -- (111) -- (1,136)
-------- -------- -------- --------
Income (loss) before income taxes 17,795 6,981 23,858 (38,272)
Provision for income taxes 4,217 750 6,597 1,500
-------- -------- -------- --------
Net income (loss) $ 13,578 $ 6,231 $ 17,261 $(39,772)
======== ======== ======== ========
Net income (loss) per share:
Basic $ 0.04 $ 0.02 $ 0.05 $ (0.12)
======== ======== ======== ========
Diluted $ 0.03 $ 0.02 $ 0.04 $ (0.12)
======== ======== ======== ========
Shares used in computing net income (loss) per share:
Basic 379,032 330,957 377,291 330,162
-------- -------- -------- --------
Diluted 399,542 342,172 395,245 330,162
======== ======== ======== ========
(1) Amortization of deferred stock compensation relates to the following cost
and expense categories by period:
Cost of revenues $ 130 $ 291 $ 239 $ 633
Research and development 1,850 (8,031) 3,512 3,159
Sales and marketing 373 (610) 700 1,096
General and administrative 147 342 269 733
------ ------- ------ ------
Total $2,500 $(8,008) $4,720 $5,621
====== ======= ====== ======
4
JUNIPER NETWORKS, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (1)
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
Net revenues:
Product $141,067 $ 99,012 $276,241 $203,558
Service 24,036 18,024 46,069 35,697
-------- -------- -------- --------
Total net revenues 165,103 117,036 322,310 239,255
Cost of revenues:
Product 48,803 36,153 97,174 75,864
Service 13,627 12,002 26,607 22,287
-------- -------- -------- --------
Total cost of revenues 62,430 48,155 123,781 98,151
-------- -------- -------- --------
Gross profit 102,673 68,881 198,529 141,104
Operating expenses:
Research and development 43,007 33,770 86,477 68,839
Sales and marketing 33,710 25,894 66,694 53,472
General and administrative 7,296 9,104 14,768 18,653
-------- -------- -------- --------
Total operating expenses 84,013 68,768 167,939 140,964
-------- -------- -------- --------
Operating income 18,660 113 30,590 140
Interest income 8,827 15,380 18,079 32,132
Interest and other expense (12,354) (14,763) (24,303) (29,895)
Equity in net loss of joint venture -- (111) -- (1,136)
-------- -------- -------- --------
Income before income taxes 15,133 619 24,366 1,241
Provision for income taxes 4,843 198 7,797 397
-------- -------- -------- --------
Net income $ 10,290 $ 421 $ 16,569 $ 844
======== ======== ======== ========
Net income per share:
Basic $ 0.03 $ 0.00 $ 0.04 $ 0.00
======== ======== ======== ========
Diluted $ 0.03 $ 0.00 $ 0.04 $ 0.00
======== ======== ======== ========
Shares used in computing net income per share:
Basic 379,032 330,957 377,291 330,162
======== ======== ======== ========
Diluted 399,542 342,172 395,245 342,502
======== ======== ======== ========
(1) The non-GAAP statements exclude an adjustment to the purchase price of an
acquisition, the impact of the amortization of purchased intangibles and
deferred stock compensation, the gain from the sale of investments, the
impairment write-down of investments and the gain on the retirement of
convertible subordinated notes. See reconciliation to GAAP information below.
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JUNIPER NETWORKS, INC.
RECONCILIATION OF NON-GAAP TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
Non-GAAP net income $10,290 $ 421 $ 16,569 $ 844
Acquisition related adjustment 1,190 -- 1,190 --
Amortization of purchased intangible assets and
deferred stock compensation (7,803) 6,362 (15,325) (8,913)
Gain on sale of investments 4,387 -- 8,739 --
Write-down of investments -- -- -- (30,600)
Gain on retirement of convertible subordinated notes 4,888 -- 4,888 --
Income tax effect 626 (552) 1,200 (1,103)
------- ------ -------- --------
GAAP net income (loss) $13,578 $6,231 $ 17,261 $(39,772)
======= ====== ======== ========
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JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six months ended June 30,
-------------------------
2003 2002
---- ----
OPERATING ACTIVITIES:
Net income (loss) $ 17,261 $ (39,772)
Adjustments to reconcile net income (loss) to net cash from operating
activities:
Depreciation 24,661 18,461
Amortization of purchased intangibles and deferred stock compensation 15,325 8,917
Amortization of debt issuance costs 1,677 1,906
Gain on sale of investments (8,739) --
Write-down of investments -- 30,600
Gain on retirement of convertible subordinated notes (4,888) --
Changes in operating assets and liabilities:
Accounts receivable, net 4,734 41,260
Prepaid expenses, other current assets and other long-term assets 775 6,103
Accounts payable 9,835 14,779
Accrued warranty (631) (1,840)
Other accrued liabilities 3,489 (36,197)
Deferred revenue 9,173 (4,366)
--------- ---------
Net cash provided by operating activities 72,672 39,851
INVESTING ACTIVITIES:
Purchasing of property and equipment, net (9,505) (20,592)
Purchases of available-for-sale investments (477,689) (602,348)
Maturities and sales of available-for-sale investments 431,676 558,506
Increase in restricted cash (25,000) --
Minority equity investments (900) (1,000)
--------- ---------
Net cash used in investing activities (81,418) (65,434)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock 35,107 8,564
Proceeds from issuance of convertible senior notes 392,750 --
Retirement of convertible subordinated notes (97,053) --
--------- ---------
Net cash provided by financing activities 330,804 8,564
--------- ---------
Net increase (decrease) in cash and cash equivalents 322,058 (17,019)
Cash and cash equivalents at beginning of period 194,435 606,845
--------- ---------
Cash and cash equivalents at end of period $ 516,493 $ 589,826
========= =========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 23,460 $ 27,313
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