Juniper Networks Reports Preliminary Third Quarter 2013 Financial Results

Juniper Networks Reports Preliminary Third Quarter 2013 Financial Results 
SUNNYVALE, CA -- (Marketwired) -- 10/22/13 --  Juniper Networks
(NYSE: JNPR) 
Q3 2013: 


 
--  Revenue: $1,186 million, up 3% from Q2'13 and up 6% from Q3'12
--  Operating Margin: 12.2% GAAP; 19.8% non-GAAP, up 0.9 pts from Q2'13
--  GAAP Net Income Per Share: $0.19 diluted
--  Non-GAAP Net Income Per Share: $0.33 diluted, up from $0.29 diluted in
    Q2'13 and up from $0.22 diluted in Q3'12

  
Juniper Networks (NYSE: JNPR), the industry leader in network
innovation, today reported preliminary financial results for the
three months ended September 30, 2013 and provided its outlook for
the three months ending December 31, 2013. 
Net revenues for the third quarter of 2013 increased 6%
year-over-year and increased 3% sequentially to $1,186 million. 
Juniper's operating margin for the third quarter of 2013 increased to
12.2% on a GAAP basis from 3.8% in the third quarter of 2012 and was
essentially flat from 12.0% in the second quarter of 2013. Non-GAAP
operating margin for the third quarter of 2013 increased to 19.8%
from 16.9% in the third quarter of 2012 and increased from 18.9% in
the second quarter of 2013. 
The Company posted GAAP net income of $99 million or $0.19 per
diluted share for the third quarter of 2013. The GAAP diluted income
per share includes $0.02 impact from restructuring charges. Non-GAAP
net income per diluted share increased 14% compared to the second
quarter of 2013 and includes a $0.01 benefit from a lower tax rate. 
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. 
"We delivered our fifth consecutive quarter of year-over-year growth.
Our performance reflects our continued ability to execute our
strategy with agility in a dynamic macro environment," said Kevin
Johnson, chief executive officer of Juniper Networks. "We continue to
see strong demand from our service provider customers and gain
traction in the enterprise. It is evidence that our innovative and
differentiated product portfolio is aligned with the needs of our
customers as they look to build the best networks for their
businesses."  
"Our third quarter results reflect continued momentum in revenue and
earnings growth," said Robyn Denholm, chief financial and operations
officer of Juniper Networks. "We remain focused on growing top-line
revenue, maintaining healthy gross margins and strengthening our
business model. I am pleased with the team's efforts and commitment
to gaining efficiencies throughout the company as we look to capture
the market opportunity ahead." 
Other Financial Highlights
 Total cash, cash equivalents and
investments as of September 30, 2013 were $4,034 million compared to
$3,819 million as of June 30, 2013 and $4,048 million as of September
30, 2012. 
Juniper's net cash flow from operations for the third quarter of 2013
was $176 million, compared to $284 million in the second quarter of
2013 and $173 million in the third quarter of 2012.  
Days sales outstanding in accounts receivable ("DSO") was 42 days in
the third quarter of 2013 compared to 40 days in the prior quarter
and 32 days in the third quarter of 2012. 
During the 2013 third quarter, Juniper Networks repurchased 4.4
million shares at an average share price of $20.92 per share for a
total of $93 million. 
Capital expenditures as well as depreciation and amortization of
intangible assets expense during the third quarter of 2013 were both
$41 million. 
Outlook
 Juniper's outlook for the December quarter
reflects its expectation of continued strong service provider demand
with some improvement in enterprise. The Company is carefully
monitoring any impacts in federal spending from the recent U.S.
government shutdown. 
Juniper Networks estimates: 


 
--  Revenue for the fourth quarter ending December 31, 2013 to be in the
    range of $1,200 million to $1,230 million.
--  Non-GAAP gross margin will be 64.5%, plus or minus 0.5%.
--  Non-GAAP operating expenses will be $510 million to $525 million.
--  Non-GAAP operating margin for the fourth quarter will be roughly 22%
    at the midpoint of revenue guidance.
--  Non-GAAP net income per share will range between $0.35 and $0.37 on a
    diluted basis. This assumes a flat share count and non-GAAP tax rate
    of 27.5%.

  
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. 
Conference Call Webcast
 Juniper Networks will host a conference call
webcast today, October 22, 2013, at 2:00 pm (Pacific Daylight Time),
to be broadcast live over the Internet at
http://investor.juniper.net/investor-relations/default.aspx. 
To participate via telephone in the US the toll free dial-in number
is 1-877-407-8033. Outside the US, dial +1-201-689-8033. Please call
10 minutes prior to the scheduled conference call time. The webcast
replay will be archived on the Juniper Networks website. 
About Juniper Networks
 Juniper Networks (NYSE: JNPR) delivers
innovation across routing, switching and security. From the network
core down to consumer devices, Juniper Networks' innovations in
software, silicon and systems 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. 
Safe Harbor
 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 resolutions; and
other factors listed in Juniper Networks' most recent report on Form
10-Q filed with the Securities and Exchange Commission. All
statements made in this press release are made only as of the date
set forth at the beginning of this release. Juniper Networks
undertakes no obligation to update the information in this release in
the event facts or circumstances subsequently change after the date
of this press release. 
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     Nine Months Ended  
                                     September 30,         September 30,    
                                 --------------------  -------------------- 
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
Net revenues:                                                               
  Product                        $   900.8  $   838.2  $ 2,546.4  $ 2,414.8 
  Service                            284.8      280.1      849.1      809.8 
                                 ---------  ---------  ---------  --------- 
    Total net revenues             1,185.6    1,118.3    3,395.5    3,224.6 
Cost of revenues:                                                           
  Product                            325.5      334.7      925.0      907.9 
  Service                            113.6      109.8      332.7      340.9 
                                 ---------  ---------  ---------  --------- 
    Total cost of revenues           439.1      444.5    1,257.7    1,248.8 
                                 ---------  ---------  ---------  --------- 
Gross margin                         746.5      673.8    2,137.8    1,975.8 
Operating expenses:                                                         
  Research and development           264.6      288.2      784.5      826.5 
  Sales and marketing                268.7      261.0      790.1      778.2 
  General and administrative          61.1       49.4      157.7      152.9 
  Amortization of purchased                                                 
   intangible assets                   1.1        1.1        3.5        3.5 
  Restructuring and other                                                   
   charges                             6.0       31.0       21.0       36.2 
  Acquisition and litigation                                                
   charges                              --        0.3       10.5        1.3 
                                 ---------  ---------  ---------  --------- 
    Total operating expenses         601.5      631.0    1,767.3    1,798.6 
                                 ---------  ---------  ---------  --------- 
Operating income                     145.0       42.8      370.5      177.2 
Other expense, net                    (7.5)      (4.0)     (30.2)     (25.6)
                                 ---------  ---------  ---------  --------- 
Income before income taxes           137.5       38.8      340.3      151.6 
Income tax provision                  38.4       22.0       52.3       60.8 
                                 ---------  ---------  ---------  --------- 
Net income                       $    99.1  $    16.8  $   288.0  $    90.8 
                                 =========  =========  =========  ========= 
                                                                            
Net income per share:                                                       
  Basic                          $    0.20  $    0.03  $    0.57  $    0.17 
                                 =========  =========  =========  ========= 
  Diluted                        $    0.19  $    0.03  $    0.56  $    0.17 
                                 =========  =========  =========  ========= 
Shares used in computing net                                                
 income per share:                                                          
  Basic                              501.5      521.2      503.0      525.4 
                                 =========  =========  =========  ========= 
  Diluted                            508.6      524.5      510.7      530.3 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
               Preliminary Net Revenues by Reportable Segment               
                                (in millions)                               
                                 (unaudited)                                
                                                                            
                                   Three Months Ended    Nine Months Ended  
                                     September 30,         September 30,    
                                 --------------------- ---------------------
                                    2013       2012       2013       2012   
                                 ---------- ---------- ---------- ----------
Platform Systems Division                                                   
 Segment:                                                                   
  PSD product revenues:                                                     
    Routing                      $    594.3 $    488.1 $  1,640.3 $  1,433.1
    Switching                         147.6      145.6      439.3      409.0
                                 ---------- ---------- ---------- ----------
      Total PSD product revenues      741.9      633.7    2,079.6    1,842.1
  PSD service revenues                197.4      194.8      584.9      562.3
                                 ---------- ---------- ---------- ----------
    Total PSD revenues           $    939.3 $    828.5 $  2,664.5 $  2,404.4
                                 ========== ========== ========== ==========
                                                                            
Software Solutions Division                                                 
 Segment:                                                                   
  SSD product revenues:                                                     
    Security                     $    144.3 $    175.6 $    407.1 $    501.7
    Routing                            14.6       28.9       59.7       71.0
                                 ---------- ---------- ---------- ----------
      Total SSD product revenues      158.9      204.5      466.8      572.7
  SSD service revenues                 87.4       85.3      264.2      247.5
                                 ---------- ---------- ---------- ----------
    Total SSD revenues                246.3      289.8      731.0      820.2
                                 ---------- ---------- ---------- ----------
  Total                          $  1,185.6 $  1,118.3 $  3,395.5 $  3,224.6
                                 ========== ========== ========== ==========
                                                                            
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
                Preliminary Net Revenues by Geographic Region               
                                (in millions)                               
                                 (unaudited)                                
                                                                            
                                   Three Months Ended    Nine Months Ended  
                                     September 30,         September 30,    
                                 --------------------- ---------------------
                                    2013       2012       2013       2012   
                                 ---------- ---------- ---------- ----------
Americas                         $    661.3 $    560.3 $  1,928.5 $  1,678.9
Europe, Middle East, and Africa       306.5      321.3      898.0      927.7
Asia Pacific                          217.8      236.7      569.0      618.0
                                 ---------- ---------- ---------- ----------
  Total                          $  1,185.6 $  1,118.3 $  3,395.5 $  3,224.6
                                 ========== ========== ========== ==========
                                                                            
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
                     Preliminary Net Revenues by Market                     
                                (in millions)                               
                                 (unaudited)                                
                                                                            
                                   Three Months Ended    Nine Months Ended  
                                     September 30,         September 30,    
                                 --------------------- ---------------------
                                    2013       2012       2013       2012   
                                 ---------- ---------- ---------- ----------
Service Provider                 $    788.3 $    705.2 $  2,227.2 $  2,071.8
Enterprise                            397.3      413.1    1,168.3    1,152.8
                                 ---------- ---------- ---------- ----------
  Total                          $  1,185.6 $  1,118.3 $  3,395.5 $  3,224.6
                                 ========== ========== ========== ==========
                                                                            
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
        Reconciliation between GAAP and non-GAAP Financial Measures         
          (in millions, except percentages and per share amounts)           
                                (unaudited)                                 
                                                                            
                                               Three Months Ended           
                                    --------------------------------------- 
                                    September 30,  June 30,   September 30, 
                                         2013         2013         2012     
                                    -------------  ---------  ------------- 
GAAP operating income               $       145.0  $   138.5  $        42.8 
GAAP operating margin                        12.2%      12.0%           3.8%
  Share-based compensation                                                  
   expense                        C          69.3       61.5           59.1 
  Share-based payroll tax                                                   
   expense                        C           0.4        0.6            0.1 
  Amortization of purchased                                                 
   intangible assets              A           7.6        7.7            9.0 
  Restructuring and other                                                   
   charges                        B          12.1        8.8           83.4 
  Other                           B            --         --           (5.3)
  Acquisition-related charges     A            --        0.1            0.3 
                                    -------------  ---------  ------------- 
Non-GAAP operating income           $       234.4  $   217.2  $       189.4 
Non-GAAP operating margin                    19.8%      18.9%          16.9%
                                    =============  =========  ============= 
                                                                            
GAAP net income                     $        99.1  $    97.9  $        16.8 
  Share-based compensation                                                  
   expense                        C          69.3       61.5           59.1 
  Share-based payroll tax                                                   
   expense                        C           0.4        0.6            0.1 
  Amortization of purchased                                                 
   intangible assets              A           7.6        7.7            9.0 
  Restructuring and other                                                   
   charges                        B          12.1        8.8           83.4 
  Other                           B            --         --           (5.3)
  Acquisition-related charges     A            --        0.1            0.3 
  Gain on equity investments      B          (3.6)      (0.6)          (5.8)
  Income tax effect of non-GAAP                                             
   exclusions                     B         (18.6)     (27.9)         (39.7)
                                    -------------  ---------  ------------- 
Non-GAAP net income                 $       166.3  $   148.1  $       117.9 
                                    -------------  ---------  ------------- 
GAAP diluted net income per                                                 
 share                              $        0.19  $    0.19  $        0.03 
 
                                    -------------  ---------  ------------- 
Non-GAAP diluted net income per                                             
 share                            D $        0.33  $    0.29  $        0.22 
                                    -------------  ---------  ------------- 
Shares used in computing                                                    
 diluted net income per share               508.6      506.3          524.5 
                                    =============  =========  ============= 

 
Discussion of Non-GAAP Financial Measures 
This press release, including the tables above, includes 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-continuing 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 cont
inuing
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 stock 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
includes 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)                               
                                                                            
                                               September 30,   December 31, 
                                                    2013           2012     
                                               -------------- --------------
                                                 (unaudited)                
                    ASSETS                                                  
Current assets:                                                             
  Cash and cash equivalents                    $      2,271.5 $      2,407.8
  Short-term investments                                573.7          441.5
  Accounts receivable, net of allowances                549.3          438.4
  Deferred tax assets, net                              129.4          172.6
  Prepaid expenses and other current assets             156.5          140.4
                                               -------------- --------------
    Total current assets                              3,680.4        3,600.7
Property and equipment, net                             868.2          811.9
Long-term investments                                 1,188.6          988.1
Restricted cash and investments                          92.5          106.4
Purchased intangible assets, net                        115.9          128.9
Goodwill                                              4,057.7        4,057.8
Other long-term assets                                  194.4          138.3
                                               -------------- --------------
    Total assets                               $     10,197.7 $      9,832.1
                                               ============== ==============
                                                                            
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
Current liabilities:                                                        
  Accounts payable                             $        205.6 $        209.3
  Accrued compensation                                  191.6          279.3
  Accrued warranty                                       28.6           29.7
  Deferred revenue                                      731.9          693.5
  Other accrued liabilities                             242.9          210.2
                                               -------------- --------------
    Total current liabilities                         1,400.6        1,422.0
Long-term debt                                          999.3          999.2
Long-term deferred revenue                              289.3          229.9
Long-term income taxes payable                          117.5          112.4
Other long-term liabilities                              79.3           69.1
                                               -------------- --------------
  Total liabilities                                   2,886.0        2,832.6
  Total stockholders' equity                          7,311.7        6,999.5
                                               -------------- --------------
    Total liabilities and stockholders' equity $     10,197.7 $      9,832.1
                                               ============== =
=============
                                                                            
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
        Preliminary Condensed Consolidated Statements of Cash Flows         
                               (in millions)                                
                                (unaudited)                                 
                                                    Nine Months Ended       
                                                       September 30,        
                                               ---------------------------- 
                                                    2013           2012     
                                               -------------  ------------- 
Cash flows from operating activities:                                       
  Net income                                   $       288.0  $        90.8 
  Adjustments to reconcile net income to net                                
   cash provided by operating activities:                                   
    Share-based compensation                           180.7          186.0 
    Depreciation and amortization                      135.1          137.9 
    Restructuring and other charges                     28.6           88.6 
    Deferred income taxes                               40.4          (75.1)
    Gain on investments, net                            (7.8)          (7.8)
    Excess tax benefits from share-based                                    
     compensation                                       (1.5)          (7.2)
    Other non-cash charges                               1.3            0.6 
  Changes in operating assets and liabilities,                              
   net of effects from acquisitions:                                        
    Accounts receivable, net                          (111.0)         180.4 
    Prepaid expenses and other assets                  (67.0)         (54.0)
    Accounts payable                                    (1.1)        (114.0)
    Accrued compensation                               (88.6)           5.6 
    Income taxes payable                               (26.1)          64.7 
    Other accrued liabilities                          (16.8)         (24.8)
    Deferred revenue                                    97.7           15.9 
                                               -------------  ------------- 
      Net cash provided by operating                                        
       activities                                      451.9          487.6 
                                               -------------  ------------- 
Cash flows from investing activities:                                       
  Purchases of property and equipment                 (183.0)        (256.8)
  Purchases of trading investments                      (3.1)          (3.8)
  Purchases of available-for-sale investments       (1,351.6)      (1,009.1)
  Proceeds from sales of available-for-sale                                 
   investments                                         860.4          625.2 
  Proceeds from maturities of available-for-                                
   sale investments                                    287.6          431.7 
  Payments for business acquisitions, net of                                
   cash and cash equivalents acquired                  (10.0)         (90.5)
  Proceeds from sales of privately-held                                     
   investments                                           8.4           32.7 
  Purchases of privately-held investments              (20.4)         (11.1)
  Purchase of licensed software                        (10.0)         (65.3)
  Changes in restricted cash                              --          (20.8)
                                               -------------  ------------- 
      Net cash used in investing activities           (421.7)        (367.8)
                                               -------------  ------------- 
Cash flows from financing activities:                                       
  Proceeds from issuance of common stock               123.7           88.2 
  Purchases and retirement of common stock            (332.1)        (400.1)
  Payment for capital lease obligation                  (1.4)          (1.4)
  Customer financing arrangements                       41.8          (16.2)
  Excess tax benefits from share-based                                      
   compensation                                          1.5            7.2 
                                               -------------  ------------- 
      Net cash used in financing activities           (166.5)        (322.3)
                                               -------------  ------------- 
      Net decrease in cash and cash                                         
       equivalents                                    (136.3)        (202.5)
Cash and cash equivalents at beginning of                                   
 period                                              2,407.8        2,910.4 
                                               -------------  ------------- 
Cash and cash equivalents at end of period     $     2,271.5  $     2,707.9 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                           Juniper Networks, Inc.                           
                   Cash, Cash Equivalents, and Investments                  
                                (in millions)                               
                                             
                               
                                               September 30,   December 31, 
                                                    2013           2012     
                                               -------------- --------------
                                                 (unaudited)                
Cash and cash equivalents                      $      2,271.5 $      2,407.8
Short-term investments                                  573.7          441.5
Long-term investments                                 1,188.6          988.1
                                               -------------- --------------
  Total                                        $      4,033.8 $      3,837.4
                                               ============== ==============

  
Investor Relations
Kathleen Nemeth
Juniper Networks
(408) 936-5397
kbela@juniper.net 
Media Relations
Cindy Ta
Juniper Networks
(408) 936-6131
cta@juniper.net 
 
 
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