Juniper posts revenue of $1.102 billion, down 8% yoy

Juniper Networks reported Q2 2019 revenue of $1.102 billion, a decrease of 8% year-over-year, and an increase of 10% sequentially. GAAP operating margin was 7.5%, a decrease from 13.3% in the second quarter of 2018, and an increase from 4.3% in the first quarter of 2019. Non-GAAP operating margin was 15.8%, a decrease from 18.5% in the second quarter of 2018, and an increase from 11.2% in the first quarter of 2019. GAAP net income was $46.2 million, a decrease of 60% year-over-year, and an increase of 49% sequentially, resulting in diluted earnings per share of $0.13. Non-GAAP net income was $139.5 million, a decrease of 18% year-over-year, and an increase of 50% sequentially, resulting in non-GAAP diluted earnings per share of $0.40.

“We experienced encouraging trends during the June quarter, as we saw sequential revenue growth across industry verticals and technologies,” said Rami Rahim, chief executive officer, Juniper Networks. “We are making progress with our sales transformation efforts which, along with our strong pipeline of opportunities, is providing confidence in our ability to not only deliver sequential revenue growth through the remainder of the year, but also a return to year-over-year growth during the December quarter.”

Some highlights

• Revenue by vertical
• all verticals grew sequentially, as expected. 
• Cloud was up 28%, 
• Enterprise grew 8% but decreased 6% yoy, although bookings increased double-digits year-over-year.
• Service Provider increased 3% sequentially but was down 15% yoy.

Revenue by technology

• Routing decreased 15% year-over-year to $416 million. This represents growth of 11% sequentially. 
• Switching decreased 15% year-over-year to $216 million. This represents growth of 22% sequentially. 
• Security increased 2% year-over-year to $81 million.  This represents growth of 20% sequentially. 
• Services business increased 2% year-over-year and 1% sequentially.
• Software revenue continued to grow year-over-year and was greater than 10 percent of total revenue.

Of the top 10 customers for the quarter, four were Cloud, five were Service Provider, and one was an Enterprise. There was one customer that accounted for greater than 10% of total revenue, from the Cloud vertical.