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Juniper Networks

Company

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The company proposes software and hardware solutions and systems for separate devices and data centers, for end users and "cloud" calculations which transform experience and economy of computer networks. The company service more than 30,000 clients and partners worldwide, profit for last year made more than 3 bln. dollars of the USA.


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Performance Indicators

2018: Decrease in revenue by 8% to $4.65 billion

In 2018 revenue of Juniper Networks made $4.65 billion, having decreased by 8% concerning the 2017th. And before sales to the company grew several years in a row.

Sales of the equipment Juniper Networks were reduced from $3.45 billion in 2018 to $3.11 billion in the 2017th, and service income during this time — from $1.58 billion to $1.54 billion.

Financial performance of Juniper Networks

Most strongly at the company sale of routers — from $2.2 billion in 2017 to $1.84 billion sank a year later. The vendor earned $963.4 million and $934.4 million from the market of switches respectively, i.e. in the 2018th recession for 3% took place. In category of solutions for information security support raising of annual incomes from $293.3 million to $333 million is registered.

The lion share of revenue of Juniper Networks is still brought by telecommunication operators. The company earned $2.07 billion in 2018 against $2.32 billion from them the previous year. Orders of corporate clients provided the American producer with turnover in $1.53 billion while in 2017 this financial indicator was measured by $1.4 billion.

At last, suppliers of cloud services — the third largest category of clients of Juniper Networks — generated for the company annual revenues in the amount of $1.05 billion. In 2017 there were $1.31 billion.

As for regions, in revenue breakdown of Juniper Networks the countries of North and South America are still in the lead. There sales to the company in 2018 made $2.54 billion that there is less value of year prescription in $2.95 billion.

In EMEA countries (Europe, the Middle East, Africa) revenue in a year increased from $1.2 billion to $1.29 billion, and in the Pacific Rim — sank from $884.2 million to $815.5 million.

2018 Juniper Networks completed with net profit in the amount of $566.9 million that almost twice exceeds the profit of previous year.[1]

Business in Russia

2016: Transfer of activity to Dzhuniper Netvorking Solyushnz LLC

Since June 1, 2016 operating activities of the company in Russia were transferred from local representation in Dzhuniper Netvorking Solyushnz LLC which was registered in 2014. According to experts, it can be connected with attempt of vendor to save a share in the Russian market in the conditions of introduction by the countries of the West of sanctions against the Russian Federation.

That Juniper Networks will transfer operating activities in Russia from local representation in Dzhuniper Netvorking Solyushnz LLC, it is told in the internal document of vendor.

According to the Kartoteka.ru portal, Dzhuniper Netvorking Solyushnz LLC was registered on November 21, 2014 99.9% of a share of this society Juniper Networks International B.V belongs. (Netherlands), 0.1% - Juniper Networks (Nominees) Ltd. (Great Britain). The CEO of "Dzhuniper Netvorking Solyushnz" is Anna Kalan.

2011

Dmitry Kamensky is appointed the chief representative

On August 9, 2011 the Juniper Networks company announced Dmitry Kamensky's appointment to a position of the regional vice president in Russia and the countries of Eastern and Southeast Europe (RESE region). Dmitry Kamensky is responsible for development of sales and business in the field of solutions for telecom operators and the enterprises and to submit to Sean Dolan, the senior vice president in the region of Europe, the Middle East and Africa. Kamensky explains the solution about job change (passed from Cisco) with obtaining "the interesting offer with the bigger level of independence".

Territorially Kamensk will work from Vienna where he lives in the last several years. The top manager is not going to move to Russia, he told CNews.

The main directions of development Juniper Kamensk sees two points: "We will aim to increase a market share in the field of corporate not operator sales, and regarding business with operators we want to diversify sales". Now Juniper is presented in operators of fixed connection, in plans gain of work with mobile telecom operators more considerably, he adds.

The Russian partners of vendor also heard about intentions of the company to strengthen work with the corporate sector. "As far as we know, unlike Victor Solodkov (the previous head of Juniper, - a comment of CNews) jurisdiction Kamensk includes work not only with telecom operators, but also with corporate customers", - the first deputy managing director Technoserv Evgeny Zakreprin says.

Besides, Juniper in Russia, according to Kamensk, will have a new partner status for software developers under Junos – the operating system at which the equipment of vendor works. Having received it, Junos of a programming team using open API (the interface of creating applications) will be able to get vendersky support, advice and the instruction as the partner on the official site.

As for appearance of the manager who is responsible only for Russia, as Dmitry Kamensky speaks, "the decision on expediency of it is not made yet". Integrators believe that the ordinary personnel should be employed anyway. "By our estimates business of Juniper grows in Russia more dynamically, than at his closest competitors, - Evgeny Zakrepin considers. - It is connected as with a good product line and price policy, and correctly built work with partners. For preserving of growth rates Kamensky should strengthen the Russian office of the company additional technical and preseyl specialists".

The chief representative Victor Solodkov leaves the company

In February, 2011 the position of the head of Juniper in Russia was left by Victor Solodkov. It passed into other manufacturing company of the telecom equipment – Genband. In Russia Juniper had no head about half a year.

2010: Agreement between Svyazinvest, NVision group and Juniper

In July, 2010 the tripartite agreement about intentions between Svyazinvest, NVision Group and Juniper was signed. It was assumed including localization of production, but participants of arrangements as of August, 2011 did not speak about specific results of works. NVision told CNews that "works are conducted".

History

2017

Fall of profit twice

In 2017 the net profit of Juniper Networks was cut almost by half and was $306.2 million that in the company was explained with large single expenses (nearly $290 million) connected with tax reform in the USA.

As a result of updating of the American tax law Juniper Networks is going to return home about $3 billion profit.

Results of year of Juniper Networks: fall of profit twice

Annual revenues of Juniper Networks increased approximately by 1%, having a little exceeded $5 billion. About $3.4 billion income were the share of sales of network equipment and software products against $3.5 billion the previous year. Service revenue increased from 1.46 up to 1.58 billion dollars.

Juniper Networks turnover in the market of routers in 2017 made $2.2 billion that there is less indicator of year prescription in $2.35 billion. Sales of a switching equipment increased from 858 to 963.4 million dollars, and solutions in information security field brought the companies of $293.3 million revenue whereas in 2016 revenues of the American vendor in this sphere were measured by $318 million.

The lion share of revenues of Juniper Networks is still created by orders from telecommunication operators who in in 2017 brought the companies of $2.3 billion revenue. This amount not much more differs from that which was in the 2016th. Also almost invariable was revenue from supplies of equipment and rendering services to cloud providers — $1.3 billion. In the corporate sector turnover of Juniper Networks reached nearly $1.4 billion.

In regional consideration the main part of revenue of Juniper Networks is the share of the countries of North and South America. In these states the company gained $2.9 billion in 2017. In  EMEA region  (Europe, the Middle East, Africa) income was $1.2 billion, in the Pacific Rim — $884.2 million against $783.2 million in 2016.[2]

Dismissal up to 9% of employees

In March, 2017 Juniper Networks announced dismissals. The company can be left to 9% of her employees.

Juniper Networks published the press release in which announced reorganization. In this message the Business Insider edition saw hints on dismissals, and the company confirmed it.

According to Business Insider, the number of staff of Juniper Networks will decrease by 9% that can develop into reduction from 700 to 900 jobs. By the end of 2016 in the American company about 9800 employees worked.

Juniper Networks headquarters

The representative of Juniper Networks told the edition that the amount of reductions was "small", and the digit in 9% is inaccurate. How many people as a result left the company, are not specified.

«
Juniper Networks can only confirm that small personnel reorganization promoted increase in operational efficiency and concentration of the company on long-term growth. We are sure of need of this step which will allow us to place competently priorities in investment into the most important areas which, according to us, will support our business in the short and long term — the representative of Juniper whose name is not told noted.
»

Personnel reorganization which officially announced in Juniper, assumes creation of a position of the senior vice president for strategy and management of product lines. This position was held by Kevin Hutchins. Besides, the technical department will submit to the director of product development Andy Athreya now.

According to the statement of the producer, the purpose of these changes is support of strategy of conversions by means of innovations.

Last time before dismissals in March, 2017 Juniper reduced the staff in 2014-2015 when the company was left by 6% of employees.[3]

2016

Sales growth due to services

At the end of December, 2016 the Juniper Networks company published the financial statement of work for previous year. Sales of the producer of network equipment rose by 3% thanks to service business.

In 2016 Juniper Networks gained $5 billion against $4.86 billion the previous year. Net profit during this time decreased to $601.2 million from $633.7 million.

The most part of revenue of the company is still created by sales of routers and other devices which in 2016 reached $3.53 billion, having slightly decreased concerning an indicator of year prescription. Services generated to vendor $1.46 billion revenue against $1.3 billion in 2015, and this rise became the main driver of revenue growth Juniper Networks in general.

] Services helped Juniper Networks to increase revenue
«
We consider that we successfully implement our strategy for diversification of business and increase in a share in cloud and connected with clouds segments of our market. The innovation projects and products take strong positions and allow us on a good note to enter in 2017 — the CEO of Juniper Networks Rami Rahim whose words are cited in the press release reported.
»

In 2016 earned $858 million against $768.3 million from a switching equipment of Juniper Networks in the 2015th. In the market of routers revenue remained almost invariable — $2.4 billion. Sales of solutions for information security support were reduced from 435.6 to 318 million dollars.

The main part of revenue of Juniper Networks is the share of the countries of North and South America. There the company gained $3 billion in 2016. In EMEA region (Europe, the Middle East, Africa) income was $1.2 billion, in the Pacific Rim — $783.2 million.

Telecom operators generate Juniper Networks twice more revenues, than a corporate segment (3.45 against 1.54 billion dollars respectively in 2016).[4]

Removal of tabs from firewalls

On January 8, 2016 Juniper Networks announced removal from ScreenOS of the foreign code which could be used by intelligence agencies and hackers for receiving unauthorized access to products on this operating system.

"We will replace algorithms Dual_EC and ANSI X9.31 in ScreenOS 6.3 with the same technology of random number generation which is used in all our product portfolio of Junos OS. We intend to make these changes in the next version of ScreenOS which will be available in the first half of 2016", said in the statement of Juniper.[5]

In the middle of December, 2015 Juniper announced detection of two tabs in the source code ScreenOS. How they appeared there, it is unknown. The The Intercept edition published the classified document from files of the former employee of the American intelligence agencies of Edward Snowden according to which the U.S. National Security Agency knew about existence of the foreign code since 2011 and could use it in own purposes. At the same time it was noted that there are no conclusive proofs testimonial of participation of the authorities in emergence of backdoors in Juniper software.

Juniper Networks announced removal from ScreenOS of the foreign code which could be used by intelligence agencies and hackers for receiving unauthorized access to products on this operating system

According to experts, the problem in ScreenOS is connected with the pseudorandom number generator. At a conference at Stanford University which took place on January 7, 2016 the group of specialists in the field of cryptography said that the source code Juniper OS several times changed in 2008 for the purpose of interception of sessions in the virtual private area networks of clients.

The researcher from the University of California of Hovav to Shahs (Hovav Shacham) claims that tabs in the software of Juniper appeared in 2012 and 2014. In the latter case the foreign code when using a certain password allows to get access to all contents of products of the company. Vulnerability of 2012 leads to change of a mathematical constant in Juniper Netscreen firewalls and provides shadowing users, reported Shahs.

2015: Return to profit

On January 27, 2016 Juniper Networks published the annual financial report. The American producer of network equipment got rid of losses, however the forecast for income appeared below expectations of Wall Street.

According to these, promulgated Juniper Networks, the net profit of the company in 2015 was $633.7 million against losses in the amount of $334.3 million the previous year when the company made the big markdown of intangible assets (so-called goodwill) connected with weak work of division of information security.

Juniper Networks got rid of losses, however the forecast for income appeared below expectations of Wall Street

Juniper Networks revenue for 2015 rose by 5%, having reached $4.86 billion. The corrected revenue which is not considering sale of Junos Pulse company in 2014 increased by 7%.

In 2014 Juniper Networks spent about $167 million for restructuring, and a year later the company got from it small profit. By the end of 2015 on vendor accounts cash, its equivalents and investments in the amount of $3.19 billion against $3.11 billion accumulated the previous year.

Also follows from the financial statement of Juniper Networks that in 2015 revenue of the company from sales of products rose to $974 million from $794 million in 2014. The volume of service business increased up to $345.7 from $307.6 million.

«
The 2015th became for Juniper Networks year of effective work and product innovations — the CEO of the company Rami Rahim says. — I very much am proud of our many achievements connected with growth of the company and increase in income
»

In 2015 earned $768.3 million against $721.2 million from a switching equipment of Juniper Networks the previous year. In the market of routers revenue rose from $2.22 billion to $2.36 billion. All hardware business brought to the producer income in $3.56 billion, and service — $1.29 billion.

In January-March, 2016 Juniper Networks predicts profit in the range from 42 to 46 cents on an action at revenue in $1.15-1.19 billion. In turn the analysts polled by Thomson Reuters expect indicators at the level of 47 cents and $1.19 billion respectively.[6]

2014

Decrease in revenue by 1%, losses at the end of year

On January 28, 2015 Juniper Networks provided financial performance of the business at the end of 2014. The American company avoided at a loss because of expenses asset impairment.[7]

In January-December, 2014 revenue of Juniper Networks made $4.6 billion that is 1% less, than the previous year. Net loss appeared to equal $334.3 million, or 73 cents on an action whereas in 2013 net profit in the amount of $439.8 million, or 88 cents on an action is got.

Monetary losses of the company are connected with a markdown of intangible assets (so-called goodwill) in $850 million. Its most part is related to the division which is engaged in the notification of clients of Juniper Networks about possible threats of information security. Heavy expenses in this child structure are caused by its weak performance of work and change of strategy in cyber security.

The division of cyber security sent Juniper Networks at a loss

Operating expenses of Juniper Networks (excepting goodwill) made $3.3 billion in 2014 that is nearly $1 billion more in comparison with previous year. In this volume of costs R&D-инвестиции and expenses on the organization of sales and marketing occupied $1 billion. In October, 2014 the company announced plans to cut down expenses on additional $100 million due to optimization of leadership team.

"the 2014th was year of changes for Juniper Networks, and I am happy with the significant progress made by us as we successfully optimized the company, reduced costs, increased return on capital for shareholders and focused on the most fast-growing market segments" — the chief executive officer of the company Rami Rahim said.

In the report of Juniper Network it is also said that in 2014 the company earned $721.2 million against $638 million from a switching equipment the previous year. In the market of routers revenue rose from $2.2 billion to $2.3 billion. All hardware business brought to the producer income in $3.4 billion, and service — $1.2 billion.

In a corporate Juniper Network segment gained about $1.5 billion for 2014, and telecom operators provided the company with income in the amount of $3.1 billion.

Rami Rahim is appointed the CEO

On November 10, 2014 the head of Juniper Networks Shaygan Kheradpir was dismissed in connection with unsatisfactory job evaluation by Board of Directors. More accurate information looks as follows:[8]

"Sheygan Heradpir resigned authority of the CEO and left board after the Board of Directors criticized his leadership skills and behavior during negotiations with the client. In these questions council does not separate the point of view of Heradpir".

The company did not tell client name because of which the head was dismissed, but noted that this event will not affect financial results.

The executive vice president Rami Rahim who began to work in this company in 1997 is appointed the new head of Juniper and was responsible in it for product development and the innovation activity. 43-year-old Rahim is one of creators of the first product Juniper — the M40 router and also participated in routing software development to which the company pays more and more attention. Rami Rahim also was a part of Board of Directors.

As for 53-year-old Sheygan Heradpir, his further work location is unknown. According to conditions of its employment contract with Juniper, the former head of the company should return a part of bonuses and payments which general amount is $2.85 million within two years.

file: 1415685572.jpg ‎

The dismissed head of Juniper Sheygan Heradpir

Having headed Juniper at the beginning of 2014, Sheygan Heradpir got under pressure of activists investors on behalf of Elliott Management and Jana Partners hedzh-funds who demanded from the head of measures for expense optimization and business of the company. As a result of this pressure Heradpir started the program of return to investors of at least $3 billion through share repurchase of stocks and dividend payout.

According to the analyst Andre Kindness from Forrester Research, problems of Juniper are not in top management.

"Not important, who was replaced or as. In hard times which the industry has everyone tries to find a method to remain afloat. Juniper it is necessary to return to core values" — the expert told, commenting on news about change of the CEO of Juniper.

2011: Certification of a system of ecological management

In August, 2011 it was announced completion of certification on ISO 14001 according to the results of implementation at the enterprise of a system of ecological management. This certification represents external audit of ecological indicators of the company on design, development, service and a software maintenance, systems and the equipment of high-performance networks. Certification on ISO 14001 demands from the company of accounting and control of environmental impacts of the activity, productions and services. ISO 14001 also assumes permanent improvement of ecological indicators and implementation of systematic approach to establishment and achievement of goals and tasks of ecological management.

2010: Growth of revenue by 23% to $4 billion

Net proceeds for the 4th quarter 2010 increased by 26% in comparison with the same period of last year and for 18% in comparison with a previous period and reached 1.190 billion. For the year period which terminated on December 31, 2010 income of Juniper increased by 23% in comparison with the same period of last year, up to 4.093 billion.

The company published the amount of net profit on GAAP for the 4th quarter 2010 which made 190.2 mln. dollars of the USA, or 0.35 US dollars counting on an action, and net profit on non-GAAP equal to 228.6 mln. dollars of the USA, or 0.42 US dollars counting on an action. Increase in a tax benefit at expenses on Research and Development was about 0.03 US dollars counting on an action considered when calculating net profit for GAAP and for non-GAAP. Net profit on non-GAAP counting on an action for the 4th quarter 2010 increased by 31% in comparison with similar indicators in a year and quarter. In a year which ended on December 31, 2010 net profit on GAAP was 618.4 mln. dollars of the USA, or 1.15 US dollars counting on an action; net profit on non-GAAP was 710 mln. dollars of the USA, or 1.32 US dollars counting on an action.

Net profit on non-GAAP counting on an action in a year which ended on December 31, 2010 grew by 43% in comparison with a similar indicator for previous year.

The profit margin of Juniper company for the 4th quarter 2010 increased to 19.1% according to the GAAP standard, in comparison with 0.6% for the same period of last year. Profit margin on non-GAAP for the 4th quarter 2010 increased slightly: up to 24.5% from 24.4% for the same period of last year. For the 2010th financial year the profit margin of Juniper company increased up to 18.8% according to the GAAP standard concerning 9.4% for last financial year. Profit margin on non-GAAP for the 2010th financial year increased to 24.0% concerning 20.2% in the 2009th financial year.

The Juniper company received 371.0 mln. dollars of the USA of net income from operating activities for the 4th quarter 2010 in comparison with 259.6 mln. dollars of the USA of net income from operating activities for similar quarter 2009. In a year which ended on December 31, 2010 the Juniper company received 812.3 mln. dollars of the USA of net income from operating activities, in comparison with 796.1 mln. dollars of the USA in 2009.

Capital expenditure and depreciation charges for the 4th quarter 2010 made 47.8 mln. dollars of the USA and 42.9 mln. dollars of the USA respectively. A capital expenditure and depreciation charges for the 2010th financial year made 185.3 mln. dollars of the USA and 155.3 mln. dollars of the USA respectively.

2009: Social responsibility

Corporate Citizenship and Sustainability Report:

  • Since 2008 Juniper continues to replace physical servers in laboratories and DPCs virtual; it reduced negative influence of server environments on ecology on 30%.
  • In 2009 nearly 60% of suppliers of Juniper company participated in the largest forum on disclosure of number of emissions of a carbon dioxide gas, in particular, in the program developed for chains of suppliers. The event purpose – to make transparent the number of waste throughout all supply chain.
  • Juniper annually invests more than 800 million dollars USA in research and development for the purpose of product improvement of the company and a customer support in the course of integration of the energy saving principles of network functioning into their operating activities. In particular, switches EX4200 and EX8200 series of the company consume at 8-10% of energy less, than the corresponding equipment of competitors.
  • The principles of simplification of network infrastructure propagandized by Juniper lead to reduction of number of the equipment and connections and consequently, – to more high efficiency and smaller costs of the electric power for workflows and cooling. So, for example, the data processing center consisting of three thousand Ethernet servers in which switches of the EX series of Juniper company are used consumes at forty percent of the electric power less, than DPC with traditional three-level architecture.
  • The Juniper company became an example, having begun to measure and specify standards of energy consumption (Energy Consumption Rating, ECR) – a performance indicator of use of energy for each class of products.
  • Since 2004 the company takes part in the project on disclosure of number of emissions of a carbon dioxide gas (Carbon Disclosure Project), reporting on accomplishment of regulations.
  • In 2009 the Juniper Networks Foundation fund selected 855,000 US dollars for grants to non-profit organizations. The staff of Juniper company also collected more than 309,000 US dollars of donations to charitable organizations.

Notes


Stock price dynamics

Ticker company on the exchange: NYSE:JNPR