Juniper Networks reported net revenues of $1,082.6 million for the first quarter of 2018, a decrease of 11% year-over-year and 13% sequentially. GAAP operating margin was 5.1%, a decrease from 12.8% in the first quarter of 2017, and a decrease from 16.4% in the fourth quarter of 2017. GAAP net income was $34.4 million, a decrease of 68% year-over-year, resulting in diluted net income per share of $0.10. Non-GAAP net income was $99.5 million, a decrease of 44% year-over-year and 50% sequentially, resulting in diluted earnings per share of $0.28.
“We hit the high-end of our guidance during the March quarter due to better than expected results from our cloud vertical and another quarter of growth in our enterprise business,” said Rami Rahim, chief executive officer, Juniper Networks. “We are encouraged by the trends we are seeing in several areas of our business and remain confident in our expectation to deliver sequential growth through 2018 and a return to year-over-year growth by the December quarter.”
- Cloud revenues were up slightly sequentially and ahead of the company’s expectations.
- The Service Provider vertical was challenged due to the timing of customer deployments, resulting in decreases both year-over-year and sequentially.
- Enterprise increased 4% year-over-year due to strength from all technologies.
- Routing product revenue amounted to $408 million, down 22% year-over-year and down 20% sequentially.
- Switching product revenue amounted to $230 million, down 5% year-over-year and down 1% sequentially.
- Security product revenue was $73 million, up 11% year-over-year and down 17% sequentially.
- Service revenue was $372 million, down 5% year-over-year and down 9% sequentially.
- Of the top 10 customers for the quarter, four were Cloud, four were Service Provider, and two were Enterprise. Of these customers, four were located outside of the U.S.
- Sales in the Americas amounted to $588 million, down 17% year-over-year and down 17% sequentially.
- Sales in EMEA amounted to $308 million, up 8% year-over-year and down 5% sequentially.
- Sales in APAC amounted to $187 million, down 17% year-over-year and down 11% sequentially