Juniper Networks helps its customers branch out. The company designs and sells network infrastructure equipment used to deploy and manage services and applications across Internet protocol (IP) networks. Its products include routers, network traffic management software, virtual private network and firewall devices, data center and WAN acceleration tools, and intrusion prevention systems. Juniper sells directly and through resellers to network service providers, enterprises, government agencies, and schools. The company has resale agreements with Ericsson, IBM, and Nokia Siemens, and it counts Ingram Micro and Hitachi among its distribution partners. More than half of sales are made in the US.
Juniper gets about three-quarters of its revenue from the sale of its networking equipment products and the rest from services. Routing products generate 48% of total sales, followed by switching products, 16%, and security products, 9%.
The company relies on contract manufacturers to produce its products - Canada-headquartered Celestica; Flextronics, headquartered in Singapore; and Taiwanese firms Accton Technology and Alpha Networks.
The company does business in more than 100 countries. The US represents its largest market, accounting for more than half of sales. Europe, the Middle East, and Africa combined account for about 27% of sales, and Asia makes up 16%.
Sales and Marketing
Juniper sells its products directly and through distributors, resellers, and original equipment manufacturers (OEMs). About 68% of revenue came from service providers with the rest from corporate customers.
In 2015 Juniper posted its best revenue, profit, and cash flow figures in at least a decade.
The company's revenue rose 5% to $4.8 billion in 2015 from $4.6 billion in 2014. Sales grew in networking and services and in all geographic areas. Security was the only area where revenue didn't grow year-to-year. The company reported strong demand from telecom and enterprise customers for networking equipment. Its MX960, MX2020, and PTX series products did well in routers as did the QFX line in switches.
Juniper has nearly a million dollar turnaround in net income, posting net income of $633.7 million in 2015, compared to a loss of $334 million in 2014. The 2015 income statement was not burdened by charges for restructuring and goodwill impairment that it had in 2014.
The higher revenue and better operating margin boosted cash fkw ti $893 million in 2015 from $763 million in 2014.
Juniper finds itself increasingly dwarfed by competitors for IP networking equipment. In one area, Cisco dominates and in another the proposed merger of Nokia and Alcatel-Lucent would result in another bigger rival.
A diverse customer base helps Juniper not be dependent on one industry. Its top 10 customers are split between telecoms and services providers. And none account for 10% or more of revenue.
In 2015 the company expanded its global alliance relationship with NEC to deliver Network Functions Virtualization (NFV)-based products that allow customers greater flexibility in providing services.
Juniper spent $210 million, a 9% from 2014, on capital projects to improve long-term productivity and support continued innovation and development of new products. We ended 2015 with a strong balance sheet and intend to continue working toward an optimized capital structure
In 2014, Juniper streamlined its organization, made operations more efficient, and rationalized its product lineups. By the end of the year the company had reorganized ion into what it calls a One-Juniper structure in which it consolidated research and development go-to-market functions to reduce complexity, increase clarity of responsibilities, and improve efficiency.
During the year, Juniper introduced products aimed at the High-IQ networking and cloud markets. They include: the MX104, MX2010 and MX2020 edge routers designed for rapid service delivery and application enablement; the PTX3000 to address scale and flexibility challenges; the QFX5100 family of data center switches for virtualized data center environments; and Firefly Perimeter to provide dynamic and secure connectivity for the private and public cloud.
The company's new Contrail Software Defined Networking (SDN) controller, is a standards-based and scalable network intelligence, virtualization and control product for SDN. Also introduced was OpenContrail, an initiative that makes the source code library for Contrail available through an open source license.
Mergers and Acquisitions
Normally a fairly acquisitive company, Juniper put away its pocketbook in 2015 and 2014. Its practice has been to use acquisitions to supplement its internal product development efforts and enter new markets. In late 2013 it agreed to purchase WANDL, which provides software for design and management of next-gen multi-layer networks. In 2012 it bought Web security software developer Mykonos for about $80 million in cash to expand its selection of network security products. Later that year it bought networking software firm Contrail Systems for $92 million in cash and stock.