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 Q1'04 FINANCIAL RESULTS
Q1'04 NET REVENUE $224.1M; GAAP EPS $0.08; NON-GAAP EPS $0.09
Sunnyvale, CA - April 21, 2004 -- Juniper Networks, Inc. (NASDAQ: JNPR) today
reported its results for the quarter ending March 31, 2004.
Net revenues for the first quarter were $224.1 million, compared with $157.2
million for the same period last year, an increase of 43 percent.
GAAP net income for the first quarter was $33.5 million or $0.08 per share,
compared with a GAAP net income of $3.7 million or $0.01 per share in the first
quarter of 2003. Non-GAAP net income, which excludes the amortization of
purchased intangibles and deferred compensation and the gain on the sale of
investments, was $36.4 million or $0.09 per share, compared with non-GAAP net
income of $6.3 million or $0.02 per share in the first quarter of 2003.
Cash provided by operations was $72.8 million for the first quarter, compared to
cash provided by operations of $12.4 million for the same period last year.
Capital expenditures and depreciation during the first quarter were $7.6 million
and $8.6 million, respectively.
NetScreen Technologies, which was acquired by Juniper Networks on April 16,
2004, had net revenues for the quarter ending March 31, 2004 of $93.5 million,
compared with $58.3 million for the same period last year, an increase of 60
percent. GAAP net loss for the quarter was $3.0 million or $0.03 per share,
compared with a GAAP net income of $5.9 million or $0.07 per share in the same
quarter of 2003. Non-GAAP net income, which excludes the amortization of
purchased intangibles and deferred compensation and merger related costs, was
$15.3 million or $0.15 per share, compared with non-GAAP net income of $13.0
million or $0.15 per share in the same quarter of 2003. Certain amortization of
purchased intangible assets and deferred stock compensation was reclassed from
cost of revenues to operating expenses to conform the presentation of
NetScreen's Statements of Operations to Juniper Networks' presentation. Cash
flow provided by operations for the quarter ended March 31, 2004 was $29.5
million, compared to cash provided by operations of $20.4 million for the
quarter ended March 31, 2003.
"The results posted by both Juniper and NetScreen as separate companies in the
first quarter were strong in all areas," said Scott Kriens, chairman and CEO of
Juniper Networks. "The strategy behind the decision to make this acquisition is
to leverage the strength of both companies, and these results are a key step in
executing our plan to extend Juniper's leadership position in the industry."
Juniper Networks will host a conference call web cast today, April 21, 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 May 21, 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,
21192333, through April 28, 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, and overall future prospects 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 Form S-4 and most recent
Form 10K filed with the Securities and Exchange Commission. Information
regarding NetScreen Technologies, Inc's independent financial results for the
quarter ended March 31, 2004 and for prior periods is provided for informational
purposes only. Historical NetScreen information relates to periods prior to our
acquisition and does not comprise a part of Juniper's financial results for the
quarter ended March 31, 2004. The financial results of NetScreen from and after
April 16, 2004, the date of the acquisition, will be combined with and included
in our financial results, beginning with the quarter ending June 30, 2004. 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.
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2004 2003
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 428,494 $ 365,606
Short-term investments 233,195 215,906
Accounts receivable, net 87,442 77,964
Prepaid expenses and other current assets 25,478 31,333
----------- -----------
Total current assets 774,609 690,809
Property and equipment, net 243,550 244,491
Long-term investments 420,210 394,297
Restricted cash 30,835 30,837
Goodwill 983,397 983,397
Purchased intangible assets, net and other long-term
assets 63,987 67,266
----------- -----------
Total assets $ 2,516,588 $ 2,411,097
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 65,229 $ 61,237
Accrued warranty 37,373 35,324
Other accrued liabilities 116,717 118,940
Deferred revenue 100,320 75,312
----------- -----------
Total current liabilities 319,639 290,813
Convertible subordinated notes and other 158,403 157,841
Convertible senior notes 400,000 400,000
Commitments and contingencies
Stockholders' equity:
Common stock and additional paid-in capital 1,598,459 1,557,376
Deferred stock compensation (755) (1,228)
Accumulated other comprehensive income 5,421 4,414
Retained earnings 35,421 1,881
----------- -----------
Total stockholders' equity 1,638,546 1,562,443
----------- -----------
Total liabilities and stockholders' equity $ 2,516,588 $ 2,411,097
=========== ===========
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended
March 31,
2004 2003
--------- ---------
Net revenues:
Product $ 194,184 $ 135,174
Service 29,869 22,033
--------- ---------
Total net revenues 224,053 157,207
Cost of revenues:
Product 56,565 48,371
Service 17,454 12,980
--------- ---------
Total cost of revenues 74,019 61,351
--------- ---------
Gross margin 150,034 95,856
Operating expenses:
Research and development 46,630 43,470
Sales and marketing 43,540 32,984
General and administrative 8,865 7,472
Amortization of purchased intangible assets and
deferred stock compensation (1) 4,129 7,522
--------- ---------
Total operating expenses 103,164 91,448
========= =========
Operating income 46,870 4,408
Interest and other income 4,986 9,252
Interest and other expense (2,500) (11,949)
Gain on sale of investments -- 4,352
--------- ---------
Income before income taxes 49,356 6,063
Provision for income taxes 15,816 2,380
--------- ---------
Net income $ 33,540 $ 3,683
========= =========
Net income per share:
Basic $ 0.09 $ 0.01
========= =========
Diluted $ 0.08 $ 0.01
========= =========
Shares used in computing net income per share:
Basic 394,496 375,549
========= =========
Diluted 421,859 390,947
========= =========
(1) Amortization of deferred stock compensation relates to the following cost
and expense categories by period:
Cost of revenues $ 12 $ 109
Research and development 388 1,662
Sales and marketing 60 327
General and administrative 13 122
--------- ---------
Total $ 473 $ 2,220
========= =========
JUNIPER NETWORKS, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
Three months ended
March 31,
2004 2003
--------- ---------
Net revenues:
Product $ 194,184 $ 135,174
Service 29,869 22,033
--------- ---------
Total net revenues 224,053 157,207
Cost of revenues:
Product 56,565 48,371
Service 17,454 12,980
--------- ---------
Total cost of revenues 74,019 61,351
--------- ---------
Gross margin 150,034 95,856
Operating expenses:
Research and development 46,630 43,470
Sales and marketing 43,540 32,984
General and administrative 8,865 7,472
--------- ---------
Total operating expenses 99,035 83,926
--------- ---------
Operating income 50,999 11,930
Interest and other income 4,986 9,252
Interest and other expense (2,500) (11,949)
--------- ---------
Income before income taxes 53,485 9,233
Provision for income taxes 17,115 2,955
--------- ---------
Net income $ 36,370 $ 6,278
========= =========
Net income per share:
Basic $ 0.09 $ 0.02
========= =========
Diluted $ 0.09 $ 0.02
========= =========
Shares used in computing net income per share:
Basic 394,496 375,549
========= =========
Diluted 421,859 390,947
========= =========
(1) The non-GAAP statements exclude the amortization of purchased intangibles
and deferred stock compensation and the gain from the sale of investments.
See reconciliation to GAAP information below:
Three months ended
March 31,
2004 2003
-------- --------
Non-GAAP net income $ 36,370 $ 6,278
Amortization of purchased intangible assets and deferred
stock compensation (4,129) (7,522)
Gain on sale of investments -- 4,352
Income tax effect 1,299 575
-------- --------
Net income $ 33,540 $ 3,683
======== ========
JUNIPER NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended
March 31,
2004 2003
--------- ---------
OPERATING ACTIVITIES:
Net income $ 33,540 $ 3,683
Adjustments to reconcile net income to net cash from
operating activities:
Depreciation 8,603 12,867
Amortization of purchased intangibles, deferred stock
compensation and debt costs 4,599 8,300
Gain on sale of investments -- (4,352)
Changes in operating assets and liabilities:
Accounts receivable, net (9,478) (6,007)
Prepaid expenses, other current assets and other
long-term assets 5,915 (5)
Accounts payable 3,992 9,982
Accrued warranty 2,049 (410)
Other accrued liabilities (1,463) (17,068)
Deferred revenue 25,008 5,412
--------- ---------
Net cash provided by operating activities 72,765 12,402
INVESTING ACTIVITIES:
Purchases of property and equipment, net (7,612) (5,222)
Purchases of available-for-sale investments (120,615) (163,723)
Maturities and sales of available-for-sale investments 78,355 201,386
Decrease in restricted cash 2 --
Minority equity investments (1,090) --
--------- ---------
Net cash (used in) provided by investing activities (50,960) 32,441
FINANCING ACTIVITIES:
Proceeds from issuance of common stock 41,083 11,064
--------- ---------
Net cash provided by financing activities 41,083 11,064
--------- ---------
Net increase in cash and cash equivalents 62,888 55,907
Cash and cash equivalents at beginning of period 365,606 194,435
--------- ---------
Cash and cash equivalents at end of period $ 428,494 $ 250,342
========= =========
NETSCREEN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, September 30,
2004 2003
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 74,605 $ 53,914
Short-term investments 341,703 286,738
Restricted cash -- 38
Accounts receivable, net 43,547 35,874
Prepaid expenses and other current assets 41,840 38,425
--------- ---------
Total current assets 501,695 414,989
Property and equipment, net 11,557 10,667
Restricted cash 143 823
Goodwill 250,671 54,271
Purchased intangible assets, net and other long-term
assets 39,312 10,973
--------- ---------
Total assets $ 803,378 $ 491,723
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,396 $ 8,230
Other accrued liabilities 48,916 30,158
Deferred revenue 73,067 54,364
--------- ---------
Total current liabilities 132,379 92,752
Restructuring liabilities, net of current portion 3,437 2,042
Commitments and contingencies
Stockholders' equity:
Common stock and additional paid-in capital 789,467 493,750
Deferred stock compensation (44,316) (15,977)
Stockholders' notes receivable (7) (48)
Accumulated other comprehensive income 109 234
Accumulated deficit (77,691) (81,030)
--------- ---------
Total stockholders' equity 667,562 396,929
--------- ---------
Total liabilities and stockholders' equity $ 803,378 $ 491,723
========= =========
NETSCREEN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Six Months Ended
Ended March 31, March 31,
--------------- ---------
2004 2003 2004 2003
-------- -------- -------- --------
Net revenues:
Product $ 74,791 $ 47,937 $139,713 $ 90,388
Service 18,727 10,405 34,822 19,024
-------- -------- -------- --------
Total net revenues 93,518 58,342 174,535 109,412
Cost of revenues:
Product 14,190 10,033 27,263 18,719
Service 4,954 2,954 8,862 5,094
-------- -------- -------- --------
Total cost of revenues 19,144 12,987 36,125 23,813
-------- -------- -------- --------
Gross margin 74,374 45,355 138,410 85,599
Operating expenses:
Research and development 13,917 9,089 24,802 16,865
Sales and marketing 30,590 17,841 58,865 35,271
General and administrative 5,444 4,202 10,350 7,669
Merger related costs 10,600 -- 10,600 --
Amortization of purchased intangibles
and deferred stock compensation (1) 10,661 5,714 19,730 12,050
-------- -------- -------- --------
Total operating expenses 71,212 36,846 124,347 71,855
-------- -------- -------- --------
Operating income 3,162 8,509 14,063 13,744
Interest and other income, net 714 1,004 1,840 2,067
-------- -------- -------- --------
Income before income taxes 3,876 9,513 15,903 15,811
Provision for income taxes 6,911 3,622 12,564 6,708
-------- -------- -------- --------
Net income (loss) $ (3,035) $ 5,891 $ 3,339 $ 9,103
======== ======== ======== ========
Net income (loss) per share:
Basic $ (0.03) $ 0.08 $ 0.04 $ 0.12
======== ======== ======== ========
Diluted $ (0.03) $ 0.07 $ 0.04 $ 0.11
======== ======== ======== ========
Shares used in computing net income (loss) per share:
Basic 92,390 78,377 89,465 77,690
======== ======== ======== ========
Diluted 92,390 84,312 94,873 83,603
======== ======== ======== ========
(1) Amortization of deferred stock compensation
relates to the following cost and expense categories by period:
Cost of revenues $ 558 $ 688 $ 1,179 $ 1,376
Research and development 3,332 1,965 6,021 3,948
Sales and marketing 2,525 2,160 5,234 4,857
General and administrative 1,331 656 2,395 1,380
-------- -------- -------- --------
Total $ 7,746 $ 5,469 $ 14,829 $ 11,561
======== ======== ======== ========
NETSCREEN TECHNOLOGIES, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
Three Months Six Months Ended
Ended March 31, March 31,
--------------- ---------
2004 2003 2004 2003
-------- -------- -------- --------
Net revenues:
Product $ 74,791 $ 47,937 $139,713 $ 90,388
Service 18,727 10,405 34,822 19,024
-------- -------- -------- --------
Total net revenues 93,518 58,342 174,535 109,412
Cost of revenues:
Product 14,190 10,033 27,263 18,719
Service 4,954 2,954 8,862 5,094
-------- -------- -------- --------
Total cost of revenues 19,144 12,987 36,125 23,813
-------- -------- -------- --------
Gross margin 74,374 45,355 138,410 85,599
Operating expenses:
Research and development 13,917 9,089 24,802 16,865
Sales and marketing 30,590 17,841 58,865 35,271
General and administrative 5,444 4,202 10,350 7,669
-------- -------- -------- --------
Total operating expenses 49,951 31,132 94,017 59,805
-------- -------- -------- --------
Operating income 24,423 14,223 44,393 25,794
Interest and other income, net 714 1,004 1,840 2,067
-------- -------- -------- --------
Income before income taxes 25,137 15,227 46,233 27,861
Provision for income taxes 9,803 2,241 18,031 3,953
-------- -------- -------- --------
Net income $ 15,334 $ 12,986 $ 28,202 $ 23,908
======== ======== ======== ========
Net income per share:
Basic $ 0.17 $ 0.17 $ 0.32 $ 0.31
======== ======== ======== ========
Diluted $ 0.15 $ 0.15 $ 0.30 $ 0.29
======== ======== ======== ========
Shares used in computing net income per share:
Basic 92,390 78,377 89,465 77,690
======== ======== ======== ========
Diluted 99,015 84,312 94,873 83,603
======== ======== ======== ========
(1) The non-GAAP statements exclude the amortization of purchased intangibles
and deferred stock compensation and merger related costs. See reconciliation to
GAAP information below:
Three Months Six Months Ended
Ended March 31, March 31,
2004 2003 2004 2003
-------- -------- -------- --------
Non-GAAP net income $ 15,334 $ 12,986 $ 28,202 $ 23,908
Merger related costs (10,600) -- (10,600) --
Amortization of purchased intangibles and
deferred stock compensation (10,661) (5,714) (19,730) (12,050)
Income tax effect 2,892 (1,381) 5,467 (2,755)
-------- -------- -------- --------
Net income (loss) $ (3,035) $ 5,891 $ 3,339 $ 9,103
======== ======== ======== ========