Juniper Networks Inc. said sluggish demand for networking equipment from corporate customers and telecommunications providers caused first-quarter profit and revenue to fall short of forecasts.
Sales came in at $1.09 billion to $1.1 billion, less than the company’s earlier projection for revenue of $1.15 billion to $1.19 billion, Sunnyvale, California-based Juniper said in a statement Monday, citing preliminary results. Profit excluding certain costs was 35 cents to 37 cents a share, compared with a prior forecast for 42 cents to 46 cents.
Juniper blamed the shortfall on the delay of orders from some major telecommunications companies in Europe and the U.S. Demand from enterprise customers was “weaker than anticipated,” the company said.
“Although we expect results to be lower than our initial guidance for the first quarter, we remain constructive on fiscal 2016 and expect growth from new products to contribute to our top line,” Chief Executive Officer Rami Rahim said in the statement.
Juniper shares fell 6.2 percent in extended trading following the announcement. Earlier, the stock slipped less than 1 percent to $24.89 at the close of regular trading in New York, and has fallen 9.8 percent so far this year.
The network equipment maker plans to report final first-quarter results on April 28.