Juniper Networks Reports Preliminary Second Quarter 2014 Financial Results

  Juniper Networks Reports Preliminary Second Quarter 2014 Financial Results

      Strong Earnings Expansion Year-Over-Year and Quarter-Over-Quarter

Q2 2014 Financial Highlights:

  *Revenue: $1,230 million, up 5% from Q1‘14 and up 7% from Q2‘13
  *Operating Margin: 9.4% GAAP, includes $86 million of restructuring and
    other charges; 22.3% non-GAAP, up 3.4 pts from Q2‘13
  *GAAP Net Income Per Share: $0.46 diluted, includes a $0.41 benefit from
    gain on legal settlements and a $0.18 impact from restructuring and other
    charges
  *Non-GAAP Net Income Per Share: $0.40 diluted, up 38% from $0.29 diluted in
    Q1‘14 and up from $0.29 diluted in Q2‘13

Business Wire

SUNNYVALE, Calif. -- July 22, 2014

Juniper Networks (NYSE: JNPR), the industry leader in network innovation,
today reported preliminary financial results for the three months ended June
30, 2014 and provided its outlook for the three months ending September 30,
2014.

Net revenues for the second quarter of 2014 increased 7% year-over-year and
increased 5% sequentially to $1,230 million.

Juniper’s operating margin for the second quarter of 2014 increased to 9.4% on
a GAAP basis, including $86 million of restructuring and other charges, from
(0.5)% in the first quarter of 2014, and decreased from 12% in the second
quarter of 2013. Non-GAAP operating margin for the second quarter of 2014
increased to 22.3% from 17.2% in the first quarter of 2014, and increased from
18.9% in the second quarter of 2013.

Juniper posted GAAP net income of $221.1 million, or $0.46 per diluted share
for the second quarter of 2014. The GAAP diluted income per share includes a
$0.41 benefit from gain on a legal settlement partly offset by an $0.18 impact
from restructuring and other charges. Non-GAAP net income was $190.3 million,
or $0.40 per diluted share for the second quarter of 2014. Non-GAAP net income
per diluted share increased 38% compared to the first quarter of 2014, and
increased 38% compared to the second quarter of 2013.

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.

“Juniper delivered another solid quarter of revenue growth, with continued
diversification across our target verticals. With our focused strategy, we are
seeing clear signs of success with customers who are in a build cycle for
High-IQ networks and Cloud ecosystems,” said Shaygan Kheradpir, chief
executive officer, Juniper Networks. “We are relentlessly executing on our
Integrated Operating Plan and successfully implemented several initiatives to
drive greater efficiencies across our organization. Throughout, we have been
working to ignite our culture of innovation and maintain our unwavering
commitment to shareholders to drive significant value through profitable
growth.”

“I am pleased to report our sixth consecutive quarter of year-over-year strong
earnings expansion,” said Robyn Denholm, chief financial and operations
officer, Juniper Networks. “We continue to generate strong operating cash
flows and have made good progress toward our operating expense and capital
allocation goals. We have done so by being very mindful of how we allocate
resources to ensure we continue to invest in R&D that will drive Juniper’s
growth well into the future.”

Junos® Pulse Divestiture

Today, Juniper Networks also announced it has entered into a definitive
agreement to sell its Junos Pulse product portfolio to Siris Capital for
approximately $250 million. Siris is a leading private equity firm focused on
making control investments in data, telecommunications, technology and
technology-enabled business service companies. Juniper and Siris have agreed
to continued support of customers and partners through the transition.
Juniper’s sale of Pulse is consistent with the Company’s overall strategy
outlined in its Integrated Operating Plan (IOP) and further aligns the
Company’s security products to where its customers and the market is heading
with High-IQ networks and building the next-generation of clouds.

Other Financial Highlights

Total cash, cash equivalents, and investments as of June 30, 2014 were $3,960
million, compared to $3,479 million as of March 31, 2014, and $3,819 million
as of June 30, 2013.

Juniper’s net cash flow from operations for the second quarter of 2014 was
$425 million, compared to $126 million in the first quarter of 2014, and $284
million in the second quarter of 2013. This quarter’s net cash flow reflects
the gain of $75 million related to our litigation settlement.

Days sales outstanding in accounts receivable or “DSO” was 41 days in the
second quarter of 2014, compared to 46 days in the prior quarter, and 40 days
in the second quarter of 2013.

During the first quarter of 2014, Juniper Networks initiated a $1.2 billion
accelerated share repurchase (ASR) program, of which $900 million of shares
were initially delivered. The Company expects the remaining shares to be
delivered no later than the end of August.

Juniper Networks also announced the initiation of a quarterly cash dividend of
$0.10 per share of common stock. This is the Company’s first cash dividend in
history. It will be payable on September 23, 2014 to shareholders of record as
of the close of business on September 2, 2014. The Company’s Board of
Directors anticipates declaring this dividend in future quarters on a regular
basis; however, future declarations of dividends are subject to Board approval
and may be adjusted as business needs or market conditions change.

Capital expenditures were $41 million and depreciation and amortization of
intangible assets expense was $45.3 million during the second quarter of 2014.

Outlook

In the near term, there are some customer-specific dynamics that the Company
is factoring into its outlook. This is partially offset by signs of strength
in emerging verticals. The Company is focused on continued innovation and
executing on its Integrated Operating Plan.

Juniper Networks estimates that for the quarter ending September 30, 2014:

  *Revenues will be in the range of $1,150 million to $1,200 million.
  *Non-GAAP gross margin will be approximately 64.0%, plus or minus 0.5%.
  *Non-GAAP operating expenses will be $505 million, plus or minus $5
    million.
  *Non-GAAP operating margin will be roughly 21.0% at the midpoint of revenue
    guidance.
  *Non-GAAP net income per share will range between $0.35 and $0.40 on a
    diluted basis. This assumes a share count of 475 million and a non-GAAP
    tax rate flat to the second quarter.
  *Capital Allocation: The Company intends to opportunistically re-purchase a
    minimum of $550 million of common stock in addition to the ASR, by the end
    of the year.

All forward-looking non-GAAP measures exclude estimates for amortization of
intangible assets, share-based compensation expense, acquisition-related
charges, restructuring and related costs, impairment charges, litigation
settlements and resolutions, non-routine stockholder activities, gain or loss
on equity investments, non-recurring income tax adjustments, product
quality-related remediation charges, 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, July 22, 2014, 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 logo and
the Junos logo 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; the potential impact of activities related to the execution of
the Juniper Networks Integrated Operating Plan; 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 our Investor Relations website at
http://investor.juniper.net/investor-relations/default.aspx.

                                              
Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Operations

(in millions, except per share amounts)

(unaudited)
                                                       
                       Three Months Ended June         Six Months Ended June 30,
                       30,
                       2014       2013             2014         2013      
Net revenues:                                                   
Product                $ 929.2       $ 863.8           $ 1,805.2       $ 1,645.6
Service                300.3        286.9            594.4          564.3     
Total net              1,229.5       1,150.7           2,399.6         2,209.9
revenues
Cost of
revenues:
Product                359.3         321.3             685.9           599.5
Service                122.0        108.9            245.4          219.1     
Total cost of          481.3        430.2            931.3          818.6     
revenues
Gross margin           748.2         720.5             1,468.3         1,391.3
Operating
expenses:
Research and           255.5         257.7             519.5           519.9
development
Sales and              258.0         267.1             531.4           523.2
marketing
General and            60.6          49.2              135.5           107.7
administrative
Restructuring
and other              58.2         8.0              172.2          15.0      
charges
Total
operating              632.3        582.0            1,358.6        1,165.8   
expenses
Operating              115.9         138.5             109.7           225.5
income
Other income           178.6        (12.6   )         332.8          (22.7     )
(expense), net
Income before          294.5         125.9             442.5           202.8
income taxes
Income tax             73.4         28.0             110.8          13.9      
provision
Net income             $ 221.1      $ 97.9           $ 331.7        $ 188.9   
                                                                                 
Net income per
share:
Basic                  $ 0.47       $ 0.19           $ 0.69         $ 0.37    
Diluted                $ 0.46       $ 0.19           $ 0.68         $ 0.37    
Shares used in
computing net
income per
share:
Basic                  470.3        503.0            478.1          503.8     
Diluted                476.5        506.3            487.3          510.4     
                                                                                 

                                              
Juniper Networks, Inc.

Preliminary Net Revenues by Product and Service

(in millions)

(unaudited)
                                                       
                   Three Months Ended June 30,         Six Months Ended June
                                                       30,
                   2014          2013               2014        2013
Routing            $  617.8       $ 577.5             $ 1,167.6   $ 1,091.2
Switching          199.8           160.2               391.8         291.7
Security           111.6          126.1              245.8       262.7
Total              929.2           863.8               1,805.2       1,645.6
product
                                                                     
Total              300.3          286.9              594.4       564.3
service
Total              $  1,229.5     $ 1,150.7          $ 2,399.6   $ 2,209.9
                                                                       

                                             
Juniper Networks, Inc.

Preliminary Net Revenues by Geographic Region

(in millions)

(unaudited)
                                                      
                  Three Months Ended June 30,         Six Months Ended June
                                                      30,
                  2014          2013               2014         2013
Americas          $  711.0       $ 675.1             $  1,392.5    $ 1,267.2
Europe,
Middle            324.8           300.9               620.5          591.5
East, and
Africa
Asia              193.7          174.7              386.6         351.2
Pacific
Total             $  1,229.5     $ 1,150.7          $  2,399.6    $ 2,209.9
                                                                       

                                              
Juniper Networks, Inc.

Preliminary Net Revenues by Market

(in millions)

(unaudited)
                                                       
                    Three Months Ended June            Six Months Ended June
                    30,                                30,
                    2014         2013               2014        2013
Service             $  831.8      $ 726.0             $ 1,614.5    $ 1,438.9
Provider
Enterprise          397.7         424.7              785.1        771.0
Total               $  1,229.5    $ 1,150.7          $ 2,399.6    $ 2,209.9
                                                                       

                          
Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in millions, except percentages and per share amounts)

(unaudited)
                                
                                Three Months Ended
                                June 30,         March 31,          June 30,
                                                                     
                                2014             2014               2013
GAAP operating income           $  115.9        $  (6.2   )        $  138.5
(loss)
GAAP operating margin           9.4      %       (0.5      )%       12.0     %
Share-based                   C 59.3             60.8               61.5
compensation expense
Share-based payroll tax       C 2.7              7.0                0.6
expense
Amortization of
purchased intangible          A 9.8              9.5                7.7
assets
Restructuring and other       B 85.7             122.4              8.8
charges
Acquisition-related           A 0.1              0.6                0.1
charges
Professional services
related to non-routine        B 0.4             7.3               —        
stockholder matters
Non-GAAP operating              $  273.9         $  201.4           $  217.2
income
Non-GAAP operating              22.3     %       17.2      %        18.9     %
margin
                                                                             
GAAP net income                 $  221.1         $  110.6           $  97.9
Share-based                   C 59.3             60.8               61.5
compensation expense
Share-based payroll tax       C 2.7              7.0                0.6
expense
Amortization of
purchased intangible          A 9.8              9.5                7.7
assets
Restructuring and other       B 85.7             122.4              8.8
charges
Acquisition-related           A 0.1              0.6                0.1
charges
Professional services
related to non-routine        B 0.4              7.3                —
stockholder matters
Gain on equity                B —                (164.0    )        (0.6     )
investments
Gain on legal                 B (195.3   )       —                  —
settlement, net
Income tax effect of          B 6.5             (11.6     )        (27.9    )
non-GAAP exclusions
Non-GAAP net income             $  190.3        $  142.6          $  148.1 
GAAP diluted net income         $  0.46         $  0.22           $  0.19  
per share
Non-GAAP diluted net          D $  0.40         $  0.29           $  0.29  
income per share
Shares used in
computing diluted net           476.5           496.5             506.3    
income per share
                                                                             

Discussion of Non-GAAP Financial Measures

This press release, including the tables above and below, includes the
following non-GAAP financial measures derived from our Preliminary Condensed
Consolidated Statements of Operations: operating income; operating margin; 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 settlement and resolution charges, 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. 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) significant
effects of tax legislation and judicial or administrative interpretation of
tax regulations; (v) gain or loss on equity investments; (vi) the income tax
effect on our financial statements of excluding items related to our non-GAAP
financial measures; (vii) professional services related to non-routine
stockholder matters; and (viii) memory-related, supplier component remediation
charge. 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 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 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)

(unaudited)
                                                                  
                                               June 30,           December 31,
                                               2014               2013
ASSETS
Current assets:
Cash and cash equivalents                      $ 2,159.8          $  2,284.0
Short-term investments                         460.5              561.9
Accounts receivable, net of allowances         560.8              578.3
Deferred tax assets, net                       151.4              79.8
Prepaid expenses and other current             165.2             199.9
assets
Total current assets                           3,497.7            3,703.9
Property and equipment, net                    889.9              882.3
Long-term investments                          1,340.1            1,251.9
Restricted cash and investments                66.3               89.5
Purchased intangible assets, net               105.3              106.9
Goodwill                                       4,071.5            4,057.7
Other long-term assets                         166.5             233.8
Total assets                                   $ 10,137.3        $  10,326.0
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                               $ 246.3            $  200.4
Accrued compensation                           232.4              273.9
Deferred revenue                               803.2              705.8
Other accrued liabilities                      291.6             261.3
Total current liabilities                      1,573.5            1,441.4
Long-term debt                                 1,348.9            999.3
Long-term deferred revenue                     370.1              363.5
Long-term income taxes payable                 125.7              114.4
Other long-term liabilities                    107.6             105.2
Total liabilities                              3,525.8            3,023.8
Total stockholders' equity                     6,611.5           7,302.2
Total liabilities and stockholders'            $ 10,137.3        $  10,326.0
equity
                                                                     

                                             
Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)
                                                 
                                                 Six Months Ended June 30,
                                                 2014          2013      
Cash flows from operating activities:
Net income                                       $ 331.7           $ 188.9
Adjustments to reconcile net income to net
cash provided by operating activities:


Share-based compensation expense                 120.1             111.4
Depreciation, amortization, and accretion        95.6              94.6
Restructuring and other charges                  208.1             16.5
Deferred income taxes                            (82.3     )       26.6
Gain on investments, net                         (167.0    )       (3.8      )
Gain on legal settlement, net                    (120.3    )       —
Excess tax benefits from share-based             (8.0      )       (1.3      )
compensation
Loss on disposal of fixed assets                 0.8               0.1
Changes in operating assets and
liabilities, net of effects from
acquisitions:
Accounts receivable, net                         21.4              (92.3     )
Prepaid expenses and other assets                149.2             (86.9     )
Accounts payable                                 53.0              (3.4      )
Accrued compensation                             (39.5     )       (64.0     )
Income taxes payable                             (38.3     )       (18.5     )
Other accrued liabilities                        (75.4     )       3.1
Deferred revenue                                 101.9            104.5     
Net cash provided by operating activities        551.0            275.5     
Cash flows from investing activities:
Purchases of property and equipment              (98.3     )       (142.3    )
Purchases of available-for-sale                  (1,577.6  )       (895.0    )
investments
Proceeds from sales of available-for-sale        1,504.6           587.5
investments
Proceeds from maturities of                      234.2             183.8
available-for-sale investments
Purchases of trading investments                 (2.4      )       (2.1      )
Proceeds from sales of privately-held            2.5               1.7
investments
Purchases of privately-held investments          (5.0      )       (14.4     )
Payments for business acquisitions, net of       (27.1     )       (10.0     )
cash and cash equivalents acquired
Purchase of licensed software                    —                 (10.0     )
Changes in restricted cash                       25.0             —         
Net cash provided by (used in) investing         55.9             (300.8    )
activities
Cash flows from financing activities:
Proceeds from issuance of common stock           121.2             74.3
Purchases and retirement of common stock         (907.1    )       (239.2    )
Purchase of equity forward contract              (300.0    )       —
Issuance of long-term debt, net                  346.5             —
Payment for capital lease obligation             (0.4      )       (1.4      )
Customer financing arrangements                  0.7               32.4
Excess tax benefits from share-based             8.0              1.3       
compensation
Net cash used in financing activities            (731.1    )       (132.6    )
Net decrease in cash and cash equivalents        (124.2    )       (157.9    )
Cash and cash equivalents at beginning of        2,284.0          2,407.8   
period
Cash and cash equivalents at end of period       $ 2,159.8        $ 2,249.9 
                                                                             

                                             
Juniper Networks, Inc.

Cash, Cash Equivalents, and Investments

(in millions)

(unaudited)
                                                      
                                  June 30,            December 31,
                                  2014                2013
Cash and cash equivalents         $ 2,159.8           $   2,284.0
Short-term investments            460.5               561.9
Long-term investments             1,340.1            1,251.9
Total                             $ 3,960.4          $   4,097.8

Contact:

Investor Relations
Juniper Networks
Cindy Ta, 408-936-6131
cta@juniper.net
or
Media Relations
Juniper Networks
Danielle Hamel, 408-936-7817
dhamel@juniper.net
 
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