Juniper Networks reported Q1 2021 net revenues of $1,074.4 million, an increase of 8% year-over-year and a decrease of 12% sequentially.GAAP net loss was $31.1 million, a decrease of 252% year-over-year and 201% sequentially, resulting in diluted loss per share of $0.10. Non-GAAP net income was $98.5 million, an increase of 28% year-over-year, and a decrease of 46% sequentially, resulting in non-GAAP diluted earnings per share of $0.30.
“We reported strong March quarter results. Revenue exceeded our expectations and we experienced better than expected product orders across each of our customer verticals,” said Juniper’s CEO, Rami Rahim. “Momentum is strong entering the June quarter and we are confident regarding our growth prospects. We believe the success we are seeing is a result of the deliberate actions we have taken to strengthen our product portfolio and go-to-market organization, both of which are enabling us to capitalize on attractive end-market opportunities now and in the future.”
Regarding its outlook, Juniper said the worldwide shortage of semiconductors is causing ongoing supply constraints which have resulted in extended lead times. The company believes that extended lead times will likely persist for the next few quarters, but that, at this point in time, it believes it will have access to sufficient semiconductor supply to meet its full-year financial forecast.
At the mid-point of guidance, revenue is expected to be up 5% year-over-year. Juniper expects to see sequential growth across our Cloud and Enterprise verticals while Service Provider is expected to remain approximately flat.
Additional highlights from Juniper:
- Automated WAN Solutions increased 22% YOY, with both MX and PTX product families posting YOY growth.
- While Cloud-ready Data Center (CRDC) declined 10% YOY due to the timing of deals, orders grew more than 30% YOY due to broad-based strength across cloud, enterprise and service provider customers; Apstra exceeded expectations.
- AI-Driven Enterprise increased 12% versus last year, as Mist and EX product families grew YOY.
Security revenue increased 11% YOY and orders exceeded expectations in the period. Strength was especially notable in the high-end of the market, although Juniper saw growth across all customer verticals and product families.
- Software and related services revenue grew 7% YOY. Software orders were particularly strong in the quarter, rising more than 70% on a YOY basis due to broad based strength across verticals and use cases.
The services team delivered another solid quarter and continued to grow on a YOY basis due to strong renewals and service attach rates.
- Juniper’s Mist AI saw new logos nearly double in Q1 andas orders experienced another quarter of triple digit growth, with a record number of deals greater than $1M. Juniper’s “Mistified” business of Wireless LAN, Wired Access, Marvis Virtual Network Assistant and Associated EX pull through approximately doubled YOY and saw record EX pull through in Q1. In addition to strength with large Fortune 500 customers, Juniper is experiencing continued strength in the channel and improved momentum with smaller commercial accounts, highlighting the value of its AI-driven enterprise offerings to customers of all sizes and across all verticals.
