Exhibit 99.1
INVESTOR RELATIONS CONTACT: PUBLIC RELATIONS CONTACT:
MICHELLE LEVINE KATHY DURR
Tel: 408-936-2775 Tel: 408-745-5058
mlevine@juniper.net kdurr@juniper.net
JUNIPER NETWORKS, INC. REPORTS Q2'04 FINANCIAL RESULTS
Q2'04 NET REVENUE $306.9M; GAAP NET LOSS PER SHARE $0.02; NON-GAAP EPS $0.08
Sunnyvale, CA - July 13, 2004 -- Juniper Networks, Inc. (NASDAQ: JNPR) today
reported its results for the quarter ending June 30, 2004.
Net revenues for the second quarter were $306.9 million, compared with $165.1
million for the same period last year, an increase of 86 percent.
GAAP net loss for the second quarter was $12.6 million or $0.02 per share,
compared with a GAAP net income of $13.6 million or $0.03 per share in the
second quarter of 2003. Non-GAAP net income was $42.7 million or $0.08 per
share, compared with non-GAAP net income of $10.3 million or $0.03 per share in
the second quarter of 2003. See the table at the bottom of the Non-GAAP
Condensed Consolidated Statements of Operations for a reconciliation of the
non-GAAP net income to the GAAP net loss.
Cash provided by operations was $119.0 million for the second quarter, compared
to cash provided by operations of $60.3 million for the same period last year.
Capital expenditures and depreciation during the second quarter were $12.1
million and $10.1 million, respectively.
In a separate announcement, Juniper today announced that its Board of Directors
authorized a stock repurchase program of up to $250 million.
"The key to Juniper's strong second quarter results was our simultaneous
execution," said Scott Kriens, chairman and CEO of Juniper Networks. "We met our
financial objectives, exceeded our goals for integration of the NetScreen
acquisition, expanded our partner and channel relationships, all while remaining
intensely focused on our customers and their needs for secure high performance
network solutions. As a result, our momentum and the confidence of our customers
put us in an incredible position as we enter the second half of 2004."
Juniper Networks will host a conference call web cast today, July 13, 2004 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 13, 2004 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,
21200631, through July 20, 2004. The replays will be available 24 hours/day,
including weekends.
ABOUT JUNIPER NETWORKS, INC.
Juniper Networks transforms the business of networking by creating competitive
advantage for our customers with superior networking and security solutions.
Juniper Networks is dedicated to customers who derive strategic value from their
networks, including global network operators, enterprises, government agencies
and research and educational institutions. Juniper Networks' portfolio of
networking and security solutions supports the complex scale, security and
performance requirements of the world's most demanding mission critical
networks. Additional information can be found at www.juniper.net.
Juniper Networks, the Juniper Networks logo, NetScreen, NetScreen Technologies,
the NetScreen logo, NetScreen-Global Pro, ScreenOS, and GigaScreen are
registered trademarks of Juniper Networks, Inc. in the United States and other
countries.
Statements in this release concerning Juniper Network's business outlook, future
financial and operating results, overall future prospects and stock repurchase
program are forward looking statements that involve a number of uncertainties
and risks. 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 most
recent Form 10-Q filed with the Securities and Exchange Commission. All
statements made in this press release are made only as of the date set forth at
the beginning of this release. Juniper Networks undertakes no obligation to
update the information in this release in the event facts or circumstances
subsequently change after the date of this press release.
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JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2004 2003
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 675,905 $ 365,606
Short-term investments 308,425 215,906
Accounts receivable, net 140,650 77,964
Prepaid expenses and other current assets 62,641 31,333
------------- -------------
Total current assets 1,187,621 690,809
Property and equipment, net 257,583 244,491
Long-term investments 485,487 394,297
Restricted cash 31,067 30,837
Goodwill 4,421,838 983,397
Purchased intangible assets, net and other long-term assets 295,925 67,266
------------- -------------
Total assets $ 6,679,521 $ 2,411,097
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 92,799 $ 61,237
Accrued warranty 41,081 35,324
Other accrued liabilities 185,541 118,940
Deferred revenue 162,492 75,312
------------- -------------
Total current liabilities 481,913 290,813
Other long-term liabilities and convertible subordinated notes 48,280 157,841
Convertible senior notes 400,000 400,000
Commitments and contingencies
Stockholders' equity:
Common stock and additional paid-in capital 5,797,219 1,557,376
Deferred stock compensation (69,205) (1,228)
Accumulated other comprehensive income (1,553) 4,414
Retained earnings 22,867 1,881
------------- -------------
Total stockholders' equity 5,749,328 1,562,443
------------- -------------
Total liabilities and stockholders' equity $ 6,679,521 $ 2,411,097
============= =============
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JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ -------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Net revenues:
Product (1) $ 263,670 $ 141,067 $ 457,854 $ 276,241
Service 43,229 24,036 73,098 46,069
----------- ----------- ----------- -----------
Total net revenues 306,899 165,103 530,952 322,310
Cost of revenues:
Product 73,887 48,803 130,452 97,174
Service 22,883 13,627 40,337 26,607
----------- ----------- ----------- -----------
Total cost of revenues 96,770 62,430 170,789 123,781
----------- ----------- ----------- -----------
Gross margin 210,129 102,673 360,163 198,529
Operating expenses:
Research and development 58,093 43,007 104,723 86,477
Sales and marketing 75,657 33,710 119,197 66,694
General and administrative 17,371 7,296 26,236 14,768
In-process research and development 27,500 - 27,500 -
Integration costs 5,087 - 5,087 -
Restructuring costs (3,835) - (3,835) -
Amortization of purchased intangibles and deferred stock
compensation (2) 35,060 7,803 39,189 15,325
----------- ----------- ----------- -----------
Total operating expenses 214,933 91,816 318,097 183,264
----------- ----------- ----------- -----------
Operating income (expense) (4,804) 10,857 42,066 15,265
Interest and other income 5,309 10,017 10,295 19,269
Interest and other expense (1,480) (12,354) (3,980) (24,303)
Gain on sale of investments - 4,387 - 8,739
Gain (loss) on redemption of convertible subordinated notes (4,107) 4,888 (4,107) 4,888
----------- ----------- ----------- -----------
Income (loss) before income taxes (5,082) 17,795 44,274 23,858
Provision for income taxes 7,472 4,217 23,288 6,597
----------- ----------- ----------- -----------
Net income (loss) $ (12,554) $ 13,578 $ 20,986 $ 17,261
=========== =========== =========== ===========
Net income (loss) per share:
Basic $ (0.02) $ 0.04 $ 0.05 $ 0.05
=========== =========== =========== ===========
Diluted $ (0.02) $ 0.03 $ 0.04 $ 0.04
=========== =========== =========== ===========
Shares used in computing net income (loss) per share:
Basic 506,189 379,032 450,343 377,291
=========== =========== =========== ===========
Diluted 506,189 399,542 489,738 395,245
=========== =========== =========== ===========
- ---------------------------
(1) Product net revenues are generated from groups of
similar products as follows:
Infrastructure $ 219,834 $ 141,067 $ 414,018 $ 276,241
Security 43,836 - 43,836 -
----------- ----------- ----------- -----------
Total $ 263,670 $ 141,067 $ 457,854 $ 276,241
=========== =========== =========== ===========
(2) Amortization of deferred stock compensation relates to
the following cost and expense categories by period:
Cost of revenues $ 1,283 $ 130 $ 1,295 $ 239
Research and development 8,733 1,850 9,121 3,512
Sales and marketing 7,718 373 7,778 700
General and administrative 1,094 147 1,107 269
----------- ----------- ----------- -----------
Total $ 18,828 $ 2,500 $ 19,301 $ 4,720
=========== =========== =========== ===========
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JUNIPER NETWORKS, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Net revenues:
Product $ 263,670 $ 141,067 $ 457,854 $ 276,241
Service 43,229 24,036 73,098 46,069
----------- ----------- ----------- -----------
Total net revenues 306,899 165,103 530,952 322,310
Cost of revenues:
Product 73,887 48,803 130,452 97,174
Service 22,883 13,627 40,337 26,607
----------- ----------- ----------- -----------
Total cost of revenues 96,770 62,430 170,789 123,781
----------- ----------- ----------- -----------
Gross margin 210,129 102,673 360,163 198,529
Operating expenses:
Research and development 58,093 43,007 104,723 86,477
Sales and marketing 75,657 33,710 119,197 66,694
General and administrative 17,371 7,296 26,236 14,768
----------- ----------- ----------- -----------
Total operating expenses 151,121 84,013 250,156 167,939
----------- ----------- ----------- -----------
Operating income 59,008 18,660 110,007 30,590
Interest and other income 5,309 8,827 10,295 18,079
Interest and other expense (1,480) (12,354) (3,980) (24,303)
----------- ----------- ----------- -----------
Income before income taxes 62,837 15,133 116,322 24,366
Provision for income taxes 20,108 4,843 37,223 7,797
----------- ----------- ----------- -----------
Net income $ 42,729 $ 10,290 $ 79,099 $ 16,569
=========== =========== =========== ===========
Net income per share:
Basic $ 0.08 $ 0.03 $ 0.18 $ 0.04
=========== =========== =========== ===========
Diluted $ 0.08 $ 0.03 $ 0.16 $ 0.04
=========== =========== =========== ===========
Shares used in computing net income per share:
Basic 506,189 379,032 450,343 377,291
=========== =========== =========== ===========
Diluted 557,618 399,542 489,738 395,245
=========== =========== =========== ===========
- ----------
(1) The non-GAAP statements exclude in-process research and development,
integration costs, restructuring costs, amortization of purchased intangibles
and deferred stock compensation, a prior period acquisition related adjustment,
gain on sale of investments and the gain or loss on redemption of the
convertible subordinated notes. See reconciliation to GAAP information below:
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2004 2003 2004 2003
------------ ----------- ----------- -----------
Non-GAAP net income $ 42,729 $ 10,290 $ 79,099 $ 16,569
In-process research and development (27,500) - (27,500) -
Integration costs (5,087) - (5,087) -
Restructuring costs 3,835 - 3,835 -
Amortization of purchased intangibles and deferred stock
compensation (35,060) (7,803) (39,189) (15,325)
Acquisition related adjustment - 1,190 - 1,190
Gain on sale of investments - 4,387 - 8,739
Gain (loss) on redemption of convertible subordinated notes (4,107) 4,888 (4,107) 4,888
Income tax effect 12,636 626 13,935 1,200
------------ ----------- ----------- -----------
Net income (loss) $ (12,554) $ 13,578 $ 20,986 $ 17,261
============ =========== =========== ===========
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JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six months ended June 30,
-------------------------
2004 2003
----------- -----------
OPERATING ACTIVITIES:
Net income $ 20,986 $ 17,261
Adjustments to reconcile net income to net cash from operating activities:
Depreciation 18,712 24,661
Amortization of purchased intangibles, deferred stock compensation and debt costs 42,557 17,002
In-process research and development 27,500 -
Gain on sale of investments - (8,739)
Loss (gain) on redemption of convertible subordinated notes 4,107 (4,888)
Changes in operating assets and liabilities:
Accounts receivable, net (34,742) 4,734
Prepaid expenses, other current assets and other long-term assets (16,242) 775
Accounts payable 8,151 9,835
Accrued warranty 5,757 (631)
Other accrued liabilities 41,302 3,489
Deferred revenue 73,689 9,173
----------- -----------
Net cash provided by operating activities 191,777 72,672
INVESTING ACTIVITIES:
Purchases of property and equipment, net (19,680) (9,505)
Purchases of available-for-sale investments (348,140) (477,689)
Maturities and sales of available-for-sale investments 520,221 431,676
Increase in restricted cash (90) (25,000)
Minority equity investments (1,180) (900)
Cash paid in connection with the NetScreen acquisition, net of cash and cash
equivalents acquired 40,889 -
----------- -----------
Net cash provided by (used in) investing activities 192,020 (81,418)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock 71,469 35,107
Proceeds from issuance of convertible senior notes - 392,750
Redemption of convertible subordinated notes (144,967) (97,053)
----------- -----------
Net cash (used in) provided by financing activities (73,498) 330,804
----------- -----------
Net increase in cash and cash equivalents 310,299 322,058
Cash and cash equivalents at beginning of period 365,606 194,435
----------- -----------
Cash and cash equivalents at end of period $ 675,905 $ 516,493
=========== ===========
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