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Juniper Networks Q2 profit increases, but misses estimates

Juniper Networks, a leader in secure, AI-driven networks, today reported preliminary financial results for the three months ended June 30, 2022 and provided its outlook for the three months ending September 30, 2022.

Second Quarter 2022 Financial Performance

Net revenues were $1,269.6 million, an increase of 8% year-over-year and an increase of 9% sequentially.

GAAP operating margin was 8.5%, an increase from 7.3% in the second quarter of 2021, and an increase from 5.0% in the first quarter of 2022.

Non-GAAP operating margin was 13.9%, a decrease from 15.8% in the second quarter of 2021, and an increase from 11.8% in the first quarter of 2022.

GAAP net income was $113.4 million, an increase of 83% year-over-year, and an increase of 104% sequentially, resulting in diluted net income per share of $0.35.

Non-GAAP net income was $136.4 million, a decrease of 3% year-over-year, and an increase of 34% sequentially, resulting in non-GAAP diluted net income per share of $0.42.

The reconciliation between GAAP and non-GAAP financial measures is provided in a table immediately following the Preliminary Net Revenues by Geographic Region table below.

“We exceeded our revenue forecast during the June quarter and delivered a second consecutive quarter of double-digit year-over-year product revenue growth,” said Juniper’s CEO, Rami Rahim. “Demand signals remain healthy and we are seeing attractive opportunities across our enterprise, cloud and service provider markets. Based on this momentum, the backlog we have built, and our latest expectations regarding supply, I am increasingly optimistic regarding our revenue growth prospects for the year.”

“Our teams executed well against the backdrop of an extremely challenged supply chain environment in the June quarter,” said Juniper’s CFO, Ken Miller. “We have taken actions to improve delivery of our products to customers. While some of these actions are likely to impact profitability over the next few quarters, they are enabling us to better meet customer demand, which should have positive long-term implications for our business. We remain focused on driving improved profitability and expect margins to improve in 2023.”

Balance Sheet and Other Financial Results
Total cash, cash equivalents, and investments as of June 30, 2022 were $1,285.6 million, compared to $1,815.4 million as of June 30, 2021, and $1,668.9 million as of March 31, 2022.

Cash flow used in operations for the second quarter of 2022 was $266.9 million, compared to $257.2 million of cash flow provided by operations in the second quarter of 2021, and $193.1 million of cash flow provided by operations in the first quarter of 2022.

Days sales outstanding in accounts receivable was 74 days in the second quarter of 2022, compared to 59 days in the second quarter of 2021, and 65 days in the first quarter of 2022.

Capital expenditures were $24.5 million, and depreciation and amortization expense was $53.9 million during the second quarter of 2022.

CT Bureau

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