Juniper Networks reported Q4 2014 net revenues of $1,102 million, down 14% year-over-year and down 2% sequentially (normalized for Junos Pulse sale: decrease of 11% year-over-year and a sequential increase of 1%).
During the quarter, the Company recorded an estimated $850 million non-cash goodwill impairment charge related to its security reporting unit. As a result, the company recorded a GAAP net loss of $769.6 million. Excluding this impairment charge, net income would have been $80.4 million or $0.19 per share for the fourth quarter of 2014, inclusive of a $0.07 impact from restructuring and other charges, a $0.04 benefit from the renewal of the R&D tax credit and a $0.05 benefit from the gain on the sale of Junos Pulse.
Juniper’s operating margin for the fourth quarter of 2014 excluding the non-cash goodwill impairment decreased to 13.5% on a GAAP basis, including a $29 million impact from restructuring and other charges. Excluding these items the GAAP operating margin for Q4 2014 would have been 16.1%, an increase from 15.3% in both the third quarter of 2014 and the fourth quarter of 2013.
“2014 was a year of change for Juniper and I’m pleased with the solid progress we made as we successfully streamlined our organization, reduced costs, increased capital returns to our shareholders and sharpened our focus on the fastest growing segments of the market,” said Rami Rahim, chief executive officer at Juniper Networks. “While we recognize that we have more work to do to realize Juniper’s full potential, we’re energized as we enter 2015. Our customers and partners across our key verticals view network innovation as fundamental to their business, and with a strong innovation pipeline, we are confident in Juniper’s future and see substantial opportunities to grow and deliver value in the long term.”
