/ CORRECTION - Juniper Networks Reports Preliminary First Quarter 2013 Financial Results

/ CORRECTION - Juniper Networks Reports Preliminary First Quarter 2013 
Financial Results 
SUNNYVALE, CA -- (Marketwired) -- 04/23/13 --  In the news release,
"Juniper Networks Reports Preliminary First Quarter 2013 Financial
Results," issued earlier today by Juniper Networks (NYSE: JNPR), we
are advised by the company that the estimate in the first and fourth
bullets under the Outlook section should be for the "second quarter"
rather than the "first quarter" as originally issued. Complete
corrected text follows. 
Juniper Networks Reports Preliminary First Quarter 2013 Financial
Results 
SUNNYVALE, CA -- April 23, 2013 -- Juniper Networks (NYSE: JNPR) 
Q1 2013:  


 
--  Revenue: $1,059 million, down 7% from Q4'12 and up 3% from Q1'12
--  Operating Margin: 8.2% GAAP; 15.7% non-GAAP, non-GAAP down 2.5 pts
    from Q4'12
--  GAAP Net Income Per Share: $0.18 diluted, includes $0.05 tax benefit
    related to a tax settlement, 0.02 litigation charge and 0.01
    restructuring charge
--  Non-GAAP Net Income Per Share: $0.24 diluted, includes a $0.03 pre-tax
    benefit from the 2012 retroactive application of the renewal of the
    R&D tax credit; down from $0.28 diluted in Q4'12 and up from $0.16
    diluted in Q1'12

  
Juniper Networks (NYSE: JNPR), the industry leader in network
innovation, today reported preliminary financial results for the
three months ended March 31, 2013, and provided its outlook for the
three months ending June 30, 2013.  
Net revenues for the first quarter of 2013 increased 3% year-over
year and decreased 7% sequentially to $1,059 million.  
Juniper's operating margin for the first quarter of 2013 increased to
8.2% on a GAAP basis from 4.6% in the first quarter of 2012, and
decreased from 11.5% in the fourth quarter of 2012. Non-GAAP
operating margin for the first quarter of 2013 increased to 15.7%,
from 12.0% in the first quarter of 2012 and decreased from 18.2% in
the fourth quarter of 2012. 
The Company posted GAAP net income of $91 million, or $0.18 per
diluted share for the first quarter of 2013. GAAP diluted net income
per share includes a $0.05 tax benefit related to a tax settlement, a
$0.02 pre-tax impact from a litigation charge as well as a $0.01
pre-tax impact from restructuring. Non-GAAP net 
income was $124
million, or $0.24 per diluted share, for the first quarter of 2013.
Both GAAP and non-GAAP diluted income per share includes a $0.03
pre-tax benefit from the 2012 retroactive application of the renewal
of the R&D tax credit. Non-GAAP net income per diluted share
increased 50% compared to the first quarter of 2012.  
The reconciliation between GAAP and non-GAAP results of operations is
provided in a table immediately following the Preliminary Net Revenue
by Market table below. 
"This was a quarter of modest year-on-year growth driven by renewed
demand from service providers and offset slightly by softness in
enterprise sectors, including federal and financial services," said
Kevin Johnson, chief executive officer of Juniper Networks. "We are
seeing increased momentum with our new product offerings as we
continue our strategy of innovating in the domain of high-performance
networking. We believe Juniper has a strong position in the service
provider market and has opportunity in the enterprise business as we
continue to grow switching as well as revitalize our security
business. We continue to focus on delivering great products,
improving operational execution, and managing our costs carefully."  
"Our first quarter results reflect our continued focus on driving
revenue growth and expanding operating margins," said Juniper
Networks CFO Robyn Denholm. "As expected, we saw continued strong
broad based demand from US service providers and early indications of
improving demand from EMEA service providers. I am pleased with the
team's efforts and commitment to gaining efficiencies throughout the
company and executing our strategy."  
Other Financial Highlights
 Total cash, cash equivalents and
investments as of March 31, 2013 were $3,672 million, compared to
$3,837 million as of December 31, 2012 and $4,216 million as of March
31, 2012. 
Juniper's net cash outflow from operations for the first quarter of
2013 was ($9) million, compared to net cash provided by operations of
$155 million in the fourth quarter of 2012, and $102 million in the
first quarter of 2012. The cash outflow in the quarter was primarily
due to a sequential increase in accounts receivable, annual payments
for incentive compensation, the timing of payments to our supply
chain and lower net income. In Q2, the Company expects to return to
its historical pattern of strong positive cash flows. 
Days sales outstanding in accounts receivable ("DSO") was 45 days in
the first quarter of 2013, compared to 35 days in the prior quarter
and 39 days in the first quarter of 2012. 
For the first quarter, Juniper repurchased 6.2 million shares at an
average share price of $20.99 per share for a total of $130 million.  
Capital expenditures, as well as depreciation and amortization of
intangible assets expense during the first quarter of 2013 were $72
million and $52 million, respectively.  
Outlook 
 Juniper's outlook for the June quarter reflects its
expectation that it will see continued weakness in the enterprise
customer spending environment. In the service provider market, the
Company expects to see a continuation of US service provider capital
spending as well as moderately improved demand trends in EMEA.
Juniper's new products continue to build momentum, especially in
routing, and the Company remains focused on disciplined operational
execution while driving revenue growth. 


 
--  Juniper estimates revenue for the second quarter ending June 30, 2013
    to be in the range of $1,070 million to $1,100 million.
    
    
--  Juniper estimates that its non-GAAP gross margin will be in the range
    of 64% to 65%.
    
    
--  Juniper estimates that its non-GAAP operating expenses will be $510
    million plus or minus $5 million.
    
    
--  Juniper expects its non-GAAP operating margin for the second quarter
    will be 17.5%, at the midpoint of guidance.
    
    
--  Juniper estimates that its non-GAAP net income per share will range
    between $0.22 and $0.26 on a diluted basis. This assumes a flat share
    count and non-GAAP tax rate of 29%, which includes the R&D tax
    credit.

  
All forward-looking non-GAAP measures exclude estimates for
amortization of intangible assets, share-based compensation expenses,
acquisition-related charges, restructuring charges, litigation
settlements and resolutions, gain or loss on equity investments,
non-recurring income tax adjustments, valuation allowance on deferred
tax assets, and income tax effect of non-GAAP exclusions. A
reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis. 
Change in Segment Reporting
 In the first quarter of 2013, Juniper
Networks made changes to align its business segment reporting to its
current organizational structure. Security products previously
reported in its Platform Systems Division (PSD) segment (including
the Branch SRX, Branch Firewall, and J Series product families) are
now reported in its Software Solutions Division (SSD) segment. This
results in all security products now being reported in its SSD
segment. The Company believes this change will provide investors with
increased financial reporting transparency and will enable bette
r
insight into the market and performance trends driving its business.
A summary showing PSD and SSD 2012 and 2011 quarterly revenues on a
basis consistent with the new reporting structure is included in
Appendix 1. 
A table showing revenue by product type within each segment is
provided as Appendix 2.  
A table showing product detail by business segment is provided as
Appendix 3. 
Under the new reporting structure, Juniper Networks continues to
measure segment profitability by "Contribution Margin," which
reflects segment revenues less those expenses which are directly
attributable to (and controlled by) the segment organization. Such
expenses would typically include costs of revenue, R&D, direct
product marketing and product lifecycle management. A summary showing
2012 and 2011 segment contribution margins on a basis consistent with
the Company's new reporting structure is included in Appendix 4.  
Conference Call Webcast
 Juniper Networks will host a conference call
webcast today, April 23, 2013, at 2:00 p.m. (Pacific Daylight Time),
to be broadcast live over the Internet at:
http://www.juniper.net/company/investor/conferencecall.html. 
To participate via telephone, in the U.S. the toll free dial-in
number is 877-407-8033; outside of the U.S. dial +1-201-689-8033.
Please call 10 minutes prior to the scheduled conference call time.
The webcast replay of the conference call will be archived on the
Juniper Networks website. 
About Juniper Networks
 Juniper Networks is in the business of
network innovation. From devices to data centers, from consumers to
cloud providers, Juniper Networks delivers the software, silicon and
systems that transform the experience and economics of networking.
Additional information can be found at Juniper Networks
(www.juniper.net) or connect with Juniper on Twitter and Facebook. 
Juniper Networks and Junos are registered trademarks of Juniper
Networks, Inc. in the United States and other countries. The Juniper
Networks and Junos logos are trademarks of Juniper Networks, Inc. All
other trademarks, service marks, registered trademarks, or registered
service marks are the property of their respective owners. 
Statements in this release concerning Juniper Networks' business
outlook, economic and market outlook, future financial and operating
results, and overall future prospects are forward-looking statements
that involve a number of uncertainties and risks. Actual results or
events could differ materially from those anticipated in those
forward-looking statements as a result of certain factors, including:
general economic and political conditions globally or regionally;
business and economic conditions in the networking industry; changes
in overall technology spending and spending by communication service
providers and major customers; the network capacity requirements of
communication service providers; contractual terms that may result in
the deferral of revenue; increases in and the effect of competition;
the timing of orders and their fulfillment; manufacturing and supply
chain constraints; ability to establish and maintain relationships
with distributors, resellers and other partners; variations in the
expected mix of products sold; changes in customer mix; changes in
geography mix; customer and industry analyst perceptions of Juniper
Networks and its technology, products and future prospects; delays in
scheduled product availability; market acceptance of Juniper Networks
products and services; rapid technological and market change;
adoption of regulations or standards affecting Juniper Networks
products, services or the networking industry; the ability to
successfully acquire, integrate and manage businesses and
technologies; product defects, returns or vulnerabilities; the
ability to recruit and retain key personnel; significant effects of
tax legislation and judicial or administrative interpretation of tax
regulations; currency fluctuations; litigation settlements and and
resolutions; and other factors listed in Juniper Networks' most
recent report on Form 10-K 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. 
Juniper Networks believes that the presentation of non-GAAP financial
information provides important supplemental information to management
and investors regarding financial and business trends relating to the
company's financial condition and results of operations. For further
information regarding why Juniper Networks believes that these
non-GAAP measures provide useful information to investors, the
specific manner in which management uses these measures, and some of
the limitations associated with the use of these measures, please
refer to the discussion below. The following tables and
reconciliations can also be found on the Investor Relations website
at www.juniper.net. 


 
                                                                            
                           Juniper Networks, Inc.                           
        Preliminary Condensed Consolidated Statements of Operations         
                  (in millions, except per share amounts)                   
                                (unaudited)                                 
                                                                            
                                                                            
                                                       Three Months Ended   
                                                            March 31,       
                                                     ---------------------- 
                                                        2013        2012    
                                                     ----------  ---------- 
Net revenues:                                                               
  Product                                            $    781.8  $    771.9 
  Service                                                 277.4       260.6 
                                                     ----------  ---------- 
    Total net revenues                                  1,059.2     1,032.5 
Cost of revenues:                                                           
  Product                                                 278.2       280.6 
  Service                                                 110.2       117.8 
                                                     ----------  ---------- 
    Total cost of revenues                                388.4       398.4 
                                                     ----------  ---------- 
Gross margin                                              670.8       634.1 
Operating expenses:                                                         
  Research and development                                262.2       269.6 
  Sales and marketing                                     255.2       257.7 
  General and administrative                               47.8        54.7 
  Amortization of purchased intangible assets               1.2         1.2 
  Restructuring charges                                   
  7.0         2.0 
  Acquisition and litigation charges                       10.4         1.2 
                                                     ----------  ---------- 
    Total operating expenses                              583.8       586.4 
                                                     ----------  ---------- 
Operating income                                           87.0        47.7 
Other expense, net                                        (10.1)      (24.4)
                                                     ----------  ---------- 
Income before income taxes                                 76.9        23.3 
Income tax (benefit) provision                            (14.1)        7.0 
                                                     ----------  ---------- 
Net income                                           $     91.0  $     16.3 
                                                     ==========  ========== 
                                                                            
Net income per share:                                                       
  Basic                                              $     0.18  $     0.03 
                                                     ==========  ========== 
  Diluted                                            $     0.18  $     0.03 
                                                     ==========  ========== 
Shares used in computing net income per share:                              
  Basic                                                   504.7       527.2 
                                                     ==========  ========== 
  Diluted                                                 512.7       533.7 
                                                     ==========  ========== 
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
               Preliminary Net Revenues by Reportable Segment               
                                (in millions)                               
                                 (unaudited)                                
                                                                            
                                                                            
                                                         Three Months Ended 
                                                             March 31,      
                                                       ---------------------
                                                          2013       2012   
                                                       ---------- ----------
Platform Systems Division Segment:                                          
  PSD product revenues:                                                     
    Routing                                            $    488.1 $    457.6
    Switching                                               131.5      123.5
                                                       ---------- ----------
      Total PSD product revenues                       $    619.6 $    581.1
  PSD service revenues                                      189.6      184.6
                                                       ---------- ----------
    Total PSD revenues                                 $    809.2 $    765.7
                                                       ========== ==========
                                                                            
Software Solutions Division Segment:                                        
  SSD product revenues:                                                     
    Security                                           $    136.7 $    168.2
    Routing                                                  25.5       22.6
                                                       ---------- ----------
      Total SSD product revenues                       $    162.2 $    190.8
  SSD service revenues                                       87.8       76.0
                                                       ---------- ----------
    Total SSD revenues                                 $    250.0 $    266.8
                                                       ---------- ----------
Total                                                  $  1,059.2 $  1,032.5
                                                       ========== ==========
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
                Preliminary Net Revenues by Geographic Region               
                                (in millions)                               
                                 (unaudited)                                
                                                                            
                                                                            
                                                         Three Months Ended 
                                                             March 31,      
                                                       ---------------------
                                                          2013       2012   
                                                       ---------- ----------
Americas                                               $    592.1 $    531.3
Europe, Middle East, and Africa                             290.6      307.1
Asia Pacific                                                176.5      194.1
                                                       ---------- ----------
  Total                                                $  1,059.2 $  1,032.5
                                                       ========== ==========
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
                     Preliminary Net Revenues by Market                     
                                (in millions)                               
                                 (unaudited)                                
                                                                            
                                                                            
                                                         Three Months Ended 
                                                             March 31,      
                                                       ---------------------
                                                          2013       2012   
                                                       ---------- ----------
Service Provider                                  
     $    712.9 $    685.6
Enterprise                                                  346.3      346.9
                                                       ---------- ----------
  Total                                                $  1,059.2 $  1,032.5
                                                       ========== ==========
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
        Reconciliation between GAAP and non-GAAP Financial Measures         
                     (in millions, except percentages)                      
                                (unaudited)                                 
                                                                            
                                                                            
                                                Three Months Ended          
                                       ------------------------------------ 
                                       March 31,   December 31,  March 31,  
                                          2013         2012         2012    
                                       ----------  ------------  ---------- 
GAAP operating income                  $     87.0  $      130.9  $     47.7 
GAAP operating margin                         8.2%         11.5%        4.6%
  Share-based compensation expense C         49.9          57.5        65.0 
  Share-based payroll tax expense  C          3.5           0.1         0.3 
  Amortization of purchased                                                 
   intangible assets               A          7.5           7.2         7.3 
  Restructuring charges            B          7.7          11.1         2.0 
  Acquisition and litigation                                                
   charges                         A,B       10.4           0.7         1.2 
                                       ----------  ------------  ---------- 
Non-GAAP operating income                   166.0         207.5       123.5 
Non-GAAP operating margin                    15.7%         18.2%       12.0%
                                       ==========  ============  ========== 
                                                                            
GAAP net income                              91.0          95.7        16.3 
  Share-based compensation expense C         49.9          57.5        65.0 
  Share-based payroll tax expense  C          3.5           0.1         0.3 
  Amortization of purchased                                                 
   intangible assets               A          7.5           7.2         7.3 
  Restructuring charges            B          7.7          11.1         2.0 
  Acquisition and litigation                                                
   charges                         A,B       10.4           0.7         1.2 
  (Gain) loss on equity                                                     
   investments                     B         (1.6)        (18.9)       14.0 
  Income tax effect of non-GAAP                                             
   exclusions                      B        (44.6)         (8.8)      (22.1)
                                       ----------  ------------  ---------- 
Non-GAAP net income                    $    123.8  $      144.6  $     84.0 
                                       ----------  ------------  ---------- 
GAAP diluted net income per share      $     0.18  $       0.19  $     0.03 
                                       ----------  ------------  ---------- 
Non-GAAP diluted net income per                                             
 share                             D   $     0.24  $       0.28  $     0.16 
                                       ----------  ------------  ---------- 
Shares used in computing diluted                                            
 net income per share                       512.7         513.1       533.7 
                                       ==========  ============  ========== 

 
Discussion of Non-GAAP Financial Measures 
The tables above and below include the following non-GAAP financial
measures derived from our Preliminary Condensed Consolidated
Statements of Operations: product gross margin, product gross margin
as a percentage of product revenue; service gross margin; service
gross margin as a percentage of service revenue; gross margin; gross
margin as a percentage of revenue; research and development expense;
sales and marketing expense; general and administrative expense;
operating expense; operating income; operating margin; provision for
income taxes; income tax rate; net income; and net income per share.
These measures are not presented in accordance with, nor are they a
substitute for U.S. generally accepted accounting principles or GAAP.
In addition, these measures may be different from non-GAAP measures
used by other companies, limiting their usefulness for comparison
purposes. The non-GAAP financial measures used in the table above
should not be considered in isolation from measures of financial
performance prepared in accordance with GAAP. Investors are cautioned
that there are material limitations associated with the use of
non-GAAP financial measures as an analytical tool. In particular,
many of the adjustments to our GAAP financial measures reflect the
exclusion of items that are recurring and will be reflected in our
financial results for the foreseeable future. 
We utilize a number of different financial measures, both GAAP and
non-GAAP, in analyzing and assessing the overall performance of our
business, in making operating decisions, forecasting and planning for
future periods, and determining payments under compensation programs.
We consider the use of the non-GAAP measures presented above to be
helpful in assessing the performance of the continuing operation of
our business. By continuing operations we mean the ongoing revenue
and expenses of the business excluding certain items that render
comparisons with prior periods or analysis of on-going operating
trends more difficult, such as expenses not directly related to the
actual cash costs of development, sale, delivery or support of our
products and services, or expenses that are reflected in periods
unrelated to when the actual amounts were incurred or paid.
Consistent with this approach, we believe that disclosing non-GAAP
financial measures to the readers of our financial statements
provides such readers with useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP,
allows for greater transparency in the review of our financial and
operational performance. In addition, we have historically reported
non-GAAP results to the investment community and believe that
continuing to provide non-GAAP measures provides investors with a
tool for comparing results over time. In assessing the overall health
of our business for the periods covered by the table above and, in
particular, in evaluating the financial line items presented in the
table above, we have excluded items in the following three general
categories, each of which are described below: Acquisition-Related
Charges, Other Items, and Share-Based Compensation Related Items. We
also provide additional detail below regarding the shares used to
calculate our non-GAAP net income per share. Notes identified for
line items in the table above correspond to the appropriate note
description below. Additionally, with respect to future financial
guidance provided on a non-GAAP basis, we have excluded estimates for
amortization of intangible assets, share based compensation expenses,
acquisition related charges, restructuring charges, litigation
settlements and resolutions, gain or loss on equity investments,
non-recurring income tax adjustments, valuation allowance on deferred
tax assets, and income tax effect of non-GAAP exclusions. 
Note A: Acquisition-Related Charges. We exclude certain expense items
resulting from acquisitions including the following, when applicable:
(i) amortization of purchased intangible assets associated with our
acquisitions; (ii) compensation related to acquisitions; and (iii)
acquisition-related charges. The amortization of purchased intangible
assets associated with our acquisitions results in our recording
expenses in our GAAP financial statements that were already expensed
by the acquired company before the acquisition and for which we have
not expended cash. Moreover, had we internally developed the products
acquired, the amortization of intangible assets, and the expenses of
uncompleted research and development would have been expensed in
prior periods. Accordingly, we analyze the performance of our
operations in each period without regard to such expenses. In
addition, acquisitions result in non-continui
ng operating expenses,
which would not otherwise have been incurred by us in the normal
course of our business operations. For example, we have incurred
deferred compensation charges related to assumed options and
transition and integration costs such as retention bonuses and
acquisition-related milestone payments to acquired employees. We
believe that providing non-GAAP information for acquisition-related
expense items in addition to the corresponding GAAP information
allows the users of our financial statements to better review and
understand the historic and current results of our continuing
operations, and also facilitates comparisons to less acquisitive peer
companies. 
Note B: Other Items. We exclude certain other items that are the
result of either unique or unplanned events including the following,
when applicable: (i) restructuring and related costs; (ii) impairment
charges; (iii) gain or loss on legal settlement, net of related
transaction costs; (iv) retroactive impacts of certain tax
settlements; (v) significant effects of tax legislation and judicial
or administrative interpretation of tax regulations; (vi) gain or
loss on equity investments; and (vii) the income tax effect on our
financial statements of excluding items related to our non-GAAP
financial measures. It is difficult to estimate the amount or timing
of these items in advance. Restructuring and impairment charges
result from events, which arise from unforeseen circumstances, which
often occur outside of the ordinary course of continuing operations.
Although these events are reflected in our GAAP financials, these
unique transactions may limit the comparability of our on-going
operations with prior and future periods. In the case of legal
settlements, these gains or losses are recorded in the period in
which the matter is concluded or resolved even though the subject
matter of the underlying dispute may relate to multiple or different
periods. As such, we believe that these expenses do not accurately
reflect the underlying performance of our continuing operations for
the period in which they are incurred. Similarly, the retroactive
impacts of certain tax settlements and significant effects of
retroactive tax legislation are unique events that occur in periods
that are generally unrelated to the level of business activity to
which such settlement or legislation applies. We believe this limits
comparability with prior periods and that these expenses do not
accurately reflect the underlying performance of our continuing
business operations for the period in which they are incurred.
Whether we realize gains or losses on equity investments is based
primarily on the performance and market value of those independent
companies. Accordingly, we believe that these gains and losses do not
reflect the underlying performance of our continuing operations. We
also believe providing financial information with and without the
income tax effect of excluding items related to our non-GAAP
financial measures provide our management and users of the financial
statements with better clarity regarding the on-going performance and
future liquidity of our business. Because of these factors, we assess
our operating performance both with these amounts included and
excluded, and by providing this information, we believe the users of
our financial statements are better able to understand the financial
results of what we consider our continuing operations. 
Note C: Share-Based Compensation Related Items. We provide non-GAAP
information relative to our expense for share-based compensation and
related payroll tax. We began to include share-based compensation
expense in our GAAP financial measures in accordance with Financial
Accounting Standards Board ("FASB") Accounting Standards Codification
("ASC") Topic 718, Compensation - Stock Compensation ("FASB ASC Topic
718"), in January 2006. Because of varying available valuation
methodologies, subjective assumptions and the variety of award types,
which affect the calculations of share-based compensation, we believe
that the exclusion of share-based compensation allows for more
accurate comparisons of our operating results to our peer companies.
Further, we believe that excluding share-based compensation expense
allows for a more accurate comparison of our financial results to
previous periods during which our equity-based awards were not
required to be reflected in our income statement. Share-based
compensation is very different from other forms of compensation. A
cash salary or bonus has a fixed and unvarying cash cost. For
example, the expense associated with a $10,000 bonus is equal to
exactly $10,000 in cash regardless of when it is awarded and who it
is awarded by. In contrast, the expense associated with an award of
an option for 1,000 shares of share is unrelated to the amount of
compensation ultimately received by the employee; and the cost to the
company is based on a share-based compensation valuation methodology
and underlying assumptions that may vary over time and that does not
reflect any cash expenditure by the company because no cash is
expended. Furthermore, the expense associated with granting an
employee an option is spread over multiple years unlike other
compensation expenses which are more proximate to the time of award
or payment. For example, we may be recognizing expense in a year
where the stock option is significantly underwater and is not going
to be exercised or generate any compensation for the employee. The
expense associated with an award of an option for 1,000 shares of
stock by us in one quarter may have a very different expense than an
award of an identical number of shares in a different quarter.
Finally, the expense recognized by us for such an option may be very
different than the expense to other companies for awarding a
comparable option, which makes it difficult to assess our operating
performance relative to our competitors. Similar to share-based
compensation, payroll tax on stock option exercises is dependent on
our stock price and the timing and exercise by employees of our
share-based compensation, over which our management has little
control, and as such does not correlate to the operation of our
business. Because of these unique characteristics of share-based
compensation and the related payroll tax, management excludes these
expenses when analyzing the organization's business performance. We
also believe that presentation of such non-GAAP information is
important to enable readers of our financial statements to compare
current period results with periods prior to the adoption of FASB ASC
Topic 718. 
Note D: Non-GAAP Net Income Per Share Items. We provide diluted
non-GAAP net income per share. The diluted non-GAAP income per share
included additional dilution from potential issuance of common stock,
except when such issuances would be anti-dilutive. 


 
                                                                            
                           Juniper Networks, Inc.          
                 
              Preliminary Condensed Consolidated Balance Sheets             
                                (in millions)                               
                                                                            
                                                                            
                                                    March 31,   December 31,
                                                       2013         2012    
                                                   ------------ ------------
                                                    (unaudited)             
                      ASSETS                                                
Current assets:                                                             
  Cash and cash equivalents                        $    2,043.7 $    2,407.8
  Short-term investments                                  613.1        441.5
  Accounts receivable, net of allowance for                                 
   doubtful accounts                                      532.6        438.4
  Deferred tax assets, net                                151.4        172.6
  Prepaid expenses and other current assets               199.2        140.4
                                                   ------------ ------------
    Total current assets                                3,540.0      3,600.7
Property and equipment, net                               839.0        811.9
Long-term investments                                   1,015.2        988.1
Restricted cash and investments                            94.4        106.4
Purchased intangible assets, net                          131.2        128.9
Goodwill                                                4,057.8      4,057.8
Other long-term assets                                    152.8        138.3
                                                   ------------ ------------
    Total assets                                   $    9,830.4 $    9,832.1
                                                   ============ ============
                                                                            
       LIABILITIES AND STOCKHOLDERS' EQUITY                                 
Current liabilities:                                                        
  Accounts payable                                 $      223.8 $      209.3
  Accrued compensation                                    204.5        279.3
  Accrued warranty                                         29.4         29.7
  Deferred revenue                                        774.7        693.5
  Other accrued liabilities                               191.3        210.2
                                                   ------------ ------------
    Total current liabilities                           1,423.7      1,422.0
Long-term debt                                            999.2        999.2
Long-term deferred revenue                                206.0        229.9
Long-term income taxes payable                             87.1        112.4
Other long-term liabilities                                58.0         69.1
                                                   ------------ ------------
  Total liabilities                                     2,774.0      2,832.6
  Total stockholders' equity                            7,056.4      6,999.5
                                                   ------------ ------------
    Total liabilities and stockholders' equity     $    9,830.4 $    9,832.1
                                                   ============ ============
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
        Preliminary Condensed Consolidated Statements of Cash Flows         
                               (in millions)                                
                                (unaudited)                                 
                                                                            
                                                                            
                                                        Three Months Ended  
                                                             March 31,      
                                                          2013       2012   
                                                       ---------  --------- 
Cash flows from operating activities:                                       
  Net income                                           $    91.0  $    16.3 
  Adjustments to reconcile net income to net cash                           
   (used in) provided by operating activities:                              
    Share-based compensation                                49.9       65.0 
    Depreciation and amortization                           51.6       43.4 
    Restructuring charges                                    7.7        2.0 
    Deferred income taxes                                   15.7      (13.9)
    (Gain) loss on investments, net                         (2.3)      14.0 
    Excess tax benefits from share-based compensation       (1.1)      (4.3)
    Other non-cash charges                                   0.3        0.2 
  Changes in operating assets and liabilities, net of                       
   effects from acquisitions:                                               
    Accounts receivable, net                               (94.3)     126.5 
    Prepaid expenses and other assets                      (53.6)     (22.3)
    Accounts payable                                         9.1     (126.8)
    Accrued compensation                                   (75.2)     (15.4)
    Income taxes payable                                   (38.4)      (3.8)
    Other accrued liabilities                              (26.5)     (11.2)
    Deferred revenue                                        57.2       32.6 
                                                       ---------  --------- 
      Net cash (used in) provided by operating                              
       activities                                           (8.9)     102.3 
                                                       ---------  --------- 
Cash flows from investing activities:                                       
  Purchases of property and equipment                      (71.5)     (82.0)
  Purchases of trading investments                          (1.5)      (2.7)
  Purchases of available-for-sale investments             (582.2)    (371.2)
  Proceeds from sales of available-for-sale                                 
   investments                                             331.8      231.4 
  Proceeds from maturities of available-for-sale                            
   investments                                              54.0      222.8 
  Payments for business acquisitions, net of cash and                       
   cash equivalents acquired                               (10.0)     (90.5)
  Proceeds from sales of privately-held investments          1.6          - 
  Purchases of privately-held investments                   (7.3)      (1.1)
                                                       ---------  --------- 
      Net cash used in investing activities               (285.1)     (93.3)
                                                       ---------  --------- 
Cash flows from financing activities:                                       
  Proceeds from issuance of common stock                    65.0       37.8 
  Purchases and retirement of common stock                (132.5)     (56.1)
  Payment for capital lease obligation                      (1.4)         - 
  Change in customer financing arrangements                 (2.3)       7.7 
  Excess tax benefits from share-based compensation          1.1        4.3 
                                                       ---------  --------- 
      Net cash used in financing activities                (70.1)      (6.3)
                                                       ---------  --------- 
      Net (decrease) increase in cash and cash                              
       equivalents                                        (364.1)       2.7 
Cash and cash equivalents at beginning of period         2,407.8    2,910.4 
                                                       ---------  --------- 
Cash and cash equivalents at end of period             $ 2,043.7  $ 2,913.1 
                                                       =========  ========= 
                                                                            
                           Juniper Networks, Inc.                           
                   Cash, Cash Equivalents, and Investments                  
                                (in millions)                               
                                                                       
     
                                                                            
                                                    March 31,   December 31,
                                                       2013         2012    
                                                   ------------ ------------
                                                    (unaudited)             
Cash and cash equivalents                          $    2,043.7 $    2,407.8
Short-term investments                                    613.1        441.5
Long-term investments                                   1,015.2        988.1
                                                   ------------ ------------
  Total                                            $    3,672.0 $    3,837.4
                                                   ============ ============
                                                                            
                                                                  Appendix 1
                                                                            
Business Segment Revenue Reporting Reconciliation ($ in millions, unaudited)
                                                        
                 ---------------------------------------
                   Q1'11     Q2'11     Q3'11     Q4'11  
                 ---------------------------------------
Revised                                                 
 Reporting                                              
 Segments                                               
PSD - Products   $  683.4  $  697.7  $  646.4  $  634.4 
PSD - Services      147.1     150.8     162.0     185.1 
                 --------  --------  --------  -------- 
  PSD revenues      830.5     848.5     808.4     819.5 
                                                        
SSD - Products      194.0     193.7     215.6     213.1 
SSD - Services       77.1      78.3      81.8      88.2 
                 --------  --------  --------  -------- 
  SSD revenues      271.1     272.0     297.4     301.3 
                 --------  --------  --------  -------- 
Total - Revised  $1,101.6  $1,120.5  $1,105.8  $1,120.8 
                                                        
As Previously                                           
 Reported                                               
PSD - Products   $  734.8  $  751.4  $  699.8  $  689.0 
PSD - Services      163.8     165.4     180.0     204.1 
                 --------  --------  --------  -------- 
  PSD revenues      898.6     916.8     879.8     893.1 
                                                        
SSD - Products      142.6     140.0     162.2     158.5 
SSD - Services       60.4      63.7      63.8      69.2 
                 --------  --------  --------  -------- 
  SSD revenues      203.0     203.7     226.0     227.7 
                 --------  --------  --------  -------- 
Total - As                                              
 Previously                                             
 Reported        $1,101.6  $1,120.5  $1,105.8  $1,120.8 
                                                        
                                                        
PSD - Products   $  (51.4) $  (53.7) $  (53.4) $  (54.6)
PSD - Services      (16.7)    (14.6)    (18.0)    (19.0)
  PSD revenues      (68.1)    (68.3)    (71.4)    (73.6)
                                                        
SSD - Products       51.4      53.7      53.4      54.6 
SSD - Services       16.7      14.6      18.0      19.0 
  SSD revenues       68.1      68.3      71.4      73.6 
                 --------  --------  --------  -------- 
Revised vs.                                             
 Previous                                               
 Reporting       $      -  $      -  $      -  $      - 
                 --------  --------  --------  -------- 
                                                        
 
                                                                            
                ------------------- -------------------  --------  -------- 
                   Q1'12     Q2'12     Q3'12     Q4'12     FY'11     FY'12  
                ------------------- -------------------  --------  -------- 
Revised                                                                     
 Reporting                                                                  
 Segments                                                                   
PSD - Products   $  581.1  $  627.3  $  633.7  $  659.5  $2,661.9  $2,501.6 
PSD - Services      184.6     182.9     194.8     206.9     645.0     769.2 
                 --------  --------  --------  --------  --------  -------- 
  PSD revenues      765.7     810.2     828.5     866.4   3,306.9   3,270.8 
                                                                            
SSD - Products      190.8     177.4     204.5     187.8     816.4     760.5 
SSD - Services       76.0      86.2      85.3      86.6     325.4     334.1 
                 --------  --------  --------  --------  --------  -------- 
  SSD revenues      266.8     263.6     289.8     274.4   1,141.8   1,094.6 
                 --------  --------  --------  --------  --------  -------- 
Total - Revised  $1,032.5  $1,073.8  $1,118.3  $1,140.8  $4,448.7  $4,365.4 
                                                                            
As Previously                                                               
 Reported                                                                   
PSD - Products   $  627.4  $  669.1  $  681.5  $  706.1  $2,875.0  $2,684.1 
PSD - Services      196.8     202.4     211.4     223.7     713.3     834.3 
                 --------  --------  --------  --------  --------  -------- 
  PSD revenues      824.2     871.5     892.9     929.8   3,588.3   3,518.4 
                                                                            
SSD - Products      144.5     135.6     156.7     141.2     603.3     578.0 
SSD - Services       63.8      66.7      68.7      69.8     257.1     269.0 
                 --------  --------  --------  --------  --------  -------- 
  SSD revenues      208.3     202.3     225.4     211.0     860.4     847.0 
                 --------  --------  --------  --------  --------  -------- 
Total - As                                                                  
 Previously                                                                 
 Reported        $1,032.5  $1,073.8  $1,118.3  $1,140.8  $4,448.7  $4,365.4 
                                                                            
                                                                            
PSD - Products   $  (46.3) $  (41.8) $  (47.8) $  (46.6) $ (213.1) $ (182.5)
PSD - Services      (12.2)    (19.5)    (16.6)    (16.8)    (68.3)    (65.1)
  PSD revenues      (58.5)    (61.3)    (64.4)    (63.4)   (281.4)   (247.6)
                                                                            
SSD - Products       46.3      41.8      47.8      46.6     213.1     182.5 
SSD - Services       12.2      19.5      16.6      16.8      68.3      65.1 
  SSD revenues       58.5      61.3      64.4      63.4     281.4     247.6 
                 --------  --------  --------  --------  --------  -------- 
Revised vs.                                                                 
 Previous                                                                   
 Reporting       $      -  $      -  $      -  $      -  $      -  $      - 
                 --------  --------  --------  --------  --------  -------- 
                                                                            
                                                                  Appendix 2
                                                                            
Business Segment Revenue Reporting by Product Type ($ in millions,          
unaudited)                                                                  
                                     
                              
                                -----------------------------------
                                  Q1'11    Q2'11    Q3'11    Q4'11 
                                -----------------------------------
         Revised Reporting                                         
          Segments                                                 
         PSD product revenues:                                     
         Routing                $  582.8 $  580.6 $  524.2 $  478.5
         Switching                 100.6    117.1    122.2    155.9
                                -------- -------- -------- --------
           Total PSD product                                       
            revenues               683.4    697.7    646.4    634.4
         PSD service revenues      147.1    150.8    162.0    185.1
                                -------- -------- -------- --------
           Total PSD revenues      830.5    848.5    808.4    819.5
         SSD product revenues:                                     
         Security                  167.3    156.7    189.3    185.0
         Routing                    26.7     37.0     26.3     28.1
                                -------- -------- -------- --------
           Total SSD product                                       
            revenues               194.0    193.7    215.6    213.1
         SSD service revenues       77.1     78.3     81.8     88.2
                                -------- -------- -------- --------
           Total SSD revenues      271.1    272.0    297.4    301.3
                                -------- -------- -------- --------
         Total - Revised        $1,101.6 $1,120.5 $1,105.8 $1,120.8
                                -------- -------- -------- --------
                                                                   
         Revised By Product                                        
          Type:                                                    
         Routing                $  609.5 $  617.6 $  550.5 $  506.6
         Switching                 100.6    117.1    122.2    155.9
         Security                  167.3    156.7    189.3    185.0
         Services                  224.2    229.1    243.8    273.3
                                -------- -------- -------- --------
         Total - Revised        $1,101.6 $1,120.5 $1,105.8 $1,120.8
                                -------- -------- -------- --------
                                                                   
 
                                                                            
                      ------------------------------------ -----------------
                         Q1'12    Q2'12    Q3'12    Q4'12    FY'11    FY'12 
                      ------------------------------------ -----------------
Revised Reporting                                                           
 Segments                                                                   
PSD product revenues:                                                       
Routing                $  457.6 $  487.4 $  488.1 $  513.7 $2,166.1 $1,946.8
Switching                 123.5    139.9    145.6    145.8    495.8    554.8
                       -------- -------- -------- -------- -------- --------
  Total PSD product                                                         
   revenues               581.1    627.3    633.7    659.5  2,661.9  2,501.6
PSD service revenues      184.6    182.9    194.8    206.9    645.0    769.2
                       -------- -------- -------- -------- -------- --------
  Total PSD revenues      765.7    810.2    828.5    866.4  3,306.9  3,270.8
SSD product revenues:                                                       
Security                  168.2    157.9    175.6    168.2    698.3    669.9
Routing                    22.6     19.5     28.9     19.6    118.1     90.6
                       -------- -------- -------- -------- -------- --------
  Total SSD product                                                         
   revenues               190.8    177.4    204.5    187.8    816.4    760.5
SSD service revenues       76.0     86.2     85.3     86.6    325.4    334.1
                       -------- -------- -------- -------- -------- --------
  Total SSD revenues      266.8    263.6    289.8    274.4  1,141.8  1,094.6
                       -------- -------- -------- -------- -------- --------
Total - Revised        $1,032.5 $1,073.8 $1,118.3 $1,140.8 $4,448.7 $4,365.4
                       -------- -------- -------- -------- -------- --------
                                                                            
Revised By Product                                                          
 Type:                                                                      
Routing                $  480.2 $  506.9 $  517.0 $  533.3 $2,284.2 $2,037.4
Switching                 123.5    139.9    145.6    145.8    495.8    554.8
Security                  168.2    157.9    175.6    168.2    698.3    669.9
Services                  260.6    269.1    280.1    293.5    970.4  1,103.3
                       -------- -------- -------- -------- -------- --------
Total - Revised        $1,032.5 $1,073.8 $1,118.3 $1,140.8 $4,448.7 $4,365.4
                       -------- -------- -------- -------- -------- --------
                                                                            
                                                                            
                                                                  Appendix 3
                                                                            
Product Detail by Business Segment (non-comprehensive)                      
                                                                            
----------------------------------------------------------------------------
                                     Switching                              
                                     Products                               
Segment Routing Products include:    include:   Security Products include:  
----------------------------------------------------------------------------
                                     EX, WLAN,                              
        E, M, MX, T, PTX, and ACX    QFabric                                
PSD     Series                       Series     N/A                         
----------------------------------------------------------------------------
        Routing Software Services,                                          
        Services HW, Mobile                     High End SRX, High End      
        Applications (such as                   Firewall, Branch SRX, Branch
        MobileNext), Content & Media            Firewall, J Series, Junos   
        HW and Applications (such as            Space Network Management,   
SSD     MediaFlow)                   N/A        Pulse, Junos SDK, Junosphere
----------------------------------------------------------------------------

 
Juniper Networks, Junos, MediaFlow, and MobileNext are registered
trademarks of Juniper Networks, Inc. in the United States and other
countries. The Juniper Networks Logo, the Junos logo, and JunosE are
trademarks of Juniper Networks, Inc. All other trademarks, service
marks, registered trademarks, or registered service marks are the
property of their respective owners. 


 
                                                                            
                                                                  Appendix 4
                                                                            
Business Segment Profitability Reporting ($ in millions, except percentages,
unaudited)                                                                  
                                                                 
                          ---------------------------------------
        
                    Q1'11     Q2'11     Q3'11     Q4'11  
                          ---------------------------------------
           Revised                                               
            Reporting                                            
            Segments                                             
           PSD revenues   $  830.5  $  848.5  $  808.4  $  819.5 
           Non-GAAP PSD                                          
            contribution                                         
            margin $         380.1     378.0     341.0     327.7 
           Non-GAAP PSD                                          
            contribution                                         
            margin %          45.8%     44.5%     42.2%     40.0%
                                                                 
           SSD revenues      271.1     272.0     297.4     301.3 
           Non-GAAP SSD                                          
            contribution                                         
            margin $         118.1     112.1     135.3     138.9 
           Non-GAAP SSD                                          
            contribution                                         
            margin %          43.6%     41.2%     45.5%     46.1%
                          --------  --------  --------  -------- 
           Total revenues $1,101.6  $1,120.5  $1,105.8  $1,120.8 
                          --------  --------  --------  -------- 
            Non-GAAP                                             
             segment                                             
             contribution                                        
             margin $        498.2     490.1     476.3     466.6 
            Non-GAAP                                             
             segment                                             
             contribution                                        
             margin %         45.2%     43.7%     43.1%     41.6%
                                                                 
           Corporate                                             
            unallocated                                          
            expenses $                                           
            (1)             (252.3)   (247.9)   (255.1)   (258.6)
                          --------  --------  --------  -------- 
            Non-GAAP                                             
             total                                               
             segment                                             
             operating                                           
             margin $        245.9     242.2     221.2     208.0 
                          --------  --------  --------  -------- 
            Non-GAAP                                             
             total                                               
             segment                                             
             operating                                           
             margin %         22.3%     21.6%     20.0%     18.6%
                                                                 
           Share-based                                           
            compensation                                         
            expense          (49.1)    (60.1)    (60.5)    (52.5)
           Share-based                                           
            payroll tax                                          
            expense           (7.9)     (1.1)     (0.2)     (0.1)
           Amortization                                          
            of purchased                                         
            intangible                                           
            assets (2)        (6.7)     (6.8)     (6.7)     (6.9)
           Restructuring                                         
            and other                                            
            charges (3)        0.3       0.9     (16.8)    (15.0)
           Acquisition-                                          
            related                                              
            charges (4)       (5.1)     (4.2)        -      (0.3)
           Other                                                 
            unallocated                                          
            expense              -         -         -         - 
                          --------  --------  --------  -------- 
           Total                                                 
            operating                                            
            income        $  177.4  $  170.9  $  137.0  $  133.2 
                          --------  --------  --------  -------- 
                                                                 
 
                                                                            
              --------------------------------------- --------------------- 
                 Q1'12     Q2'12     Q3'12     Q4'12     FY'11      FY'12   
              --------------------------------------- --------------------- 
Revised                                                                     
 Reporting                                                                  
 Segments                                                                   
PSD revenues   $  765.7  $  810.2  $  828.5  $  866.4  $ 3,306.9  $ 3,270.8 
Non-GAAP PSD                                                                
 contribution                                                               
 margin $         276.3     315.7     318.9     365.5    1,426.8    1,276.4 
Non-GAAP PSD                                                                
 contribution                                                               
 margin %          36.1%     39.0%     38.5%     42.2%      43.1%      39.0%
                                                                            
SSD revenues      266.8     263.6     289.8     274.4    1,141.8    1,094.6 
Non-GAAP SSD                                                                
 contribution                                                               
 margin $         110.3     109.9     137.0     116.4      504.4      473.6 
Non-GAAP SSD                                                                
 contribution                                                               
 margin %          41.3%     41.7%     47.3%     42.4%      44.2%      43.3%
               --------  --------  --------  --------  ---------  --------- 
Total revenues $1,032.5  $1,073.8  $1,118.3  $1,140.8  $ 4,448.7  $ 4,365.4 
               --------  --------  --------  --------  ---------  --------- 
 Non-GAAP                                                                   
  segment                                                                   
  contribution                                                              
  margin $        386.6     425.6     455.9     481.9    1,931.2    1,750.0 
 Non-GAAP                                                                   
  segment                                                                   
  contribution                                                              
  margin %         37.4%     39.6%     40.8%     42.2%      43.4%      40.1%
                                                                            
Corporate                                                                   
 unallocated                                                                
 expenses $                                                                 
 (1)             (263.1)   (264.7)   (266.5)   (274.4)  (1,013.9)  (1,068.7)
               --------  --------  --------  --------  ---------  --------- 
 Non-GAAP                                                                   
  total                                                                     
  segment                                 
                                  
  operating                                                                 
  margin $        123.5     160.9     189.4     207.5      917.3      681.3 
               --------  --------  --------  --------  ---------  --------- 
 Non-GAAP                                                                   
  total                                                                     
  segment                                                                   
  operating                                                                 
  margin %         12.0%     15.0%     16.9%     18.2%      20.6%      15.6%
                                                                            
Share-based                                                                 
 compensation                                                               
 expense          (65.0)    (61.8)    (59.1)    (57.5)    (222.2)    (243.4)
Share-based                                                                 
 payroll tax                                                                
 expense           (0.3)     (0.6)     (0.1)     (0.1)      (9.3)      (1.1)
Amortization                                                                
 of purchased                                                               
 intangible                                                                 
 assets (2)        (7.3)     (8.8)     (9.0)     (7.2)     (27.1)     (32.3)
Restructuring                                                               
 and other                                                                  
 charges (3)       (2.0)     (3.2)    (83.4)    (11.1)     (30.6)     (99.7)
Acquisition-                                                                
 related                                                                    
 charges (4)       (1.2)      0.2      (0.3)     (0.7)      (9.6)      (2.0)
Other                                                                       
 unallocated                                                                
 expense              -         -       5.3         -          -        5.3 
               --------  --------  --------  --------  ---------  --------- 
Total                                                                       
 operating                                                                  
 income        $   47.7  $   86.7  $   42.8  $  130.9  $   618.5  $   308.1 
               --------  --------  --------  --------  ---------  --------- 
                                                                            
                                                                 
                          ---------------------------------------
                            Q1'11     Q2'11     Q3'11     Q4'11  
                          ---------------------------------------
           As Previously                                         
            Reported                                             
           PSD revenues   $  898.6  $  916.8  $  879.8  $  893.1 
           Non-GAAP PSD                                          
            contribution                                         
            margin $         417.1     415.5     381.8     371.8 
           Non-GAAP PSD                                          
            contribution                                         
            margin %          46.4%     45.3%     43.4%     41.6%
                                                                 
           SSD revenues      203.0     203.7     226.0     227.7 
           Non-GAAP SSD                                          
            contribution                                         
            margin $          81.1      74.6      94.5      94.8 
           Non-GAAP SSD                                          
            contribution                                         
            margin %          40.0%     36.6%     41.8%     41.6%
                          --------  --------  --------  -------- 
           Total revenues  1,101.6   1,120.5   1,105.8   1,120.8 
                          --------  --------  --------  -------- 
            Non-GAAP                                             
             segment                                             
             contribution                                        
             margin $        498.2     490.1     476.3     466.6 
            Non-GAAP                                             
             segment                                             
             contribution                                        
             margin %         45.2%     43.7%     43.1%     41.6%
                                                                 
           Corporate                                             
            unallocated                                          
            expenses $                                           
            (1)             (252.3)   (247.9)   (255.1)   (258.6)
                          --------  --------  --------  -------- 
            Non-GAAP                                             
             total                                               
             segment                                             
             operating                                           
             margin $        245.9     242.2     221.2     208.0 
                          --------  --------  --------  -------- 
            Non-GAAP                                             
             total                                               
             segment                                             
             operating                                           
             margin %         22.3%     21.6%     20.0%     18.6%
                                                                 
           Share-based                                           
            compensation                                         
            expense          (49.1)    (60.1)    (60.5)    (52.5)
           Share-based                                           
            payroll tax                                          
            expense           (7.9)     (1.1)     (0.2)     (0.1)
           Amortization                                          
            of purchased                                         
            intangible                                           
            assets (2)        (6.7)     (6.8)     (6.7)     (6.9)
           Restructuring                                         
            and other                                            
            charges (3)        0.3       0.9     (16.8)    (15.0)
           Acquisition-                                          
            related                                              
            charges (4)       (5.1)     (4.2)        -      (0.3)
           Other                                                 
            unallocated                                          
            expense              -         -         -         - 
                          --------  --------  --------  -------- 
           Total                                                 
            operating                                            
            income        $  177.4  $  170.9  $  137.0  $  133.2 
                          --------  --------  --------  -------- 
 
                                                                            
              --------------------------------------- --------------------- 
                 Q1'12     Q2'12     Q3'12     Q4'12     FY'11      FY'12   
              --------------------------------------- --------------------- 
As Previously                                                               
 Reported                                                                   
PSD revenues   $  824.2  $  871.5  $  892.9  $  929.8  $ 3,588.3  $ 3,518.4 
 
Non-GAAP PSD                                                                
 contribution                                                               
 margin $         304.7     351.1     356.1     397.5    1,586.2    1,409.4 
Non-GAAP PSD                                                                
 contribution                                                               
 margin %          37.0%     40.3%     39.9%     42.8%      44.2%      40.1%
                                                                            
SSD revenues      208.3     202.3     225.4     211.0      860.4      847.0 
Non-GAAP SSD                                                                
 contribution                                                               
 margin $          81.9      74.5      99.8      84.4      345.0      340.6 
Non-GAAP SSD                                                                
 contribution                                                               
 margin %          39.3%     36.8%     44.3%     40.0%      40.1%      40.2%
               --------  --------  --------  --------  ---------  --------- 
Total revenues  1,032.5   1,073.8   1,118.3   1,140.8    4,448.7    4,365.4 
               --------  --------  --------  --------  ---------  --------- 
 Non-GAAP                                                                   
  segment                                                                   
  contribution                                                              
  margin $        386.6     425.6     455.9     481.9    1,931.2    1,750.0 
 Non-GAAP                                                                   
  segment                                                                   
  contribution                                                              
  margin %         37.4%     39.6%     40.8%     42.2%      43.4%      40.1%
                                                                            
Corporate                                                                   
 unallocated                                                                
 expenses $                                                                 
 (1)             (263.1)   (264.7)   (266.5)   (274.4)  (1,013.9)  (1,068.7)
               --------  --------  --------  --------  ---------  --------- 
 Non-GAAP                                                                   
  total                                                                     
  segment                                                                   
  operating                                                                 
  margin $        123.5     160.9     189.4     207.5      917.3      681.3 
               --------  --------  --------  --------  ---------  --------- 
 Non-GAAP                                                                   
  total                                                                     
  segment                                                                   
  operating                                                                 
  margin %         12.0%     15.0%     16.9%     18.2%      20.6%      15.6%
                                                                            
Share-based                                                                 
 compensation                                                               
 expense          (65.0)    (61.8)    (59.1)    (57.5)    (222.2)    (243.4)
Share-based                                                                 
 payroll tax                                                                
 expense           (0.3)     (0.6)     (0.1)     (0.1)      (9.3)      (1.1)
Amortization                                                                
 of purchased                                                               
 intangible                                                                 
 assets (2)        (7.3)     (8.8)     (9.0)     (7.2)     (27.1)     (32.3)
Restructuring                                                               
 and other                                                                  
 charges (3)       (2.0)     (3.2)    (83.4)    (11.1)     (30.6)     (99.7)
Acquisition-                                                                
 related                                                                    
 charges (4)       (1.2)      0.2      (0.3)     (0.7)      (9.6)      (2.0)
Other                                                                       
 unallocated                                                                
 expense              -         -       5.3         -          -        5.3 
               --------  --------  --------  --------  ---------  --------- 
Total                                                                       
 operating                                                                  
 income        $   47.7  $   86.7  $   42.8  $  130.9  $   618.5  $   308.1 
               --------  --------  --------  --------  ---------  --------- 
                                                                            
(1)  Amount includes unallocated costs for global functions such as sales,  
marketing, and general and administrative.                                  
(2) Amount includes amortization expense of purchased intangible assets     
reported in operating expenses and in cost of revenues.                     
(3)  Amount includes restructuring and other charges reported in operating  
expenses and in cost of revenues.                                           
(4) Amount includes acquisition-related costs reported in operating expenses
and in cost of revenues.                                                    

  
Investor Relations:
John Nunziati
Juniper Networks
(408) 936-0007
Jnunziati@juniper.net 
Media Relations:
Cindy Ta
Juniper Networks
(408) 936-6131
cta@juniper.net 
 
 
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