About Juniper Networks, Inc.

Juniper Networks helps its customers branch out and up, all the way to the cloud. The company makes infrastructure hardware and software for large-scale networks for cloud-computing providers (including data centers), telecommunications companies, and large organizations in business, government, and education. Its routers and switches move traffic around networks and its software helps manage networks. Juniper also develops security products for cyberattack detection and protection. Juniper sells directly and through resellers and distributors including Ingram Micro and Hitachi. More than half of sales are made to customers based in the US.

Operations

Juniper gets about 70% of its revenue from its networking equipment products and the rest from services. Routing products such as the ACX, MX, PTX, and Cloud Customer Platform series, generate about 45% of revenue. Services, which include support, professional, and educational services, account for about 30% of revenue with switching products - the EX and QFX series - providing about 20%, and security products, the SRX series among others, about 5%.

Juniper relies on contract manufacturers - Celestica; Flex Ltd., Accton Technology, and Alpha Networks - to make its products.

Geographic Reach

Juniper Networks does business in some 150 countries. The US is its largest market, accounting for more than half of sales. Europe, the Middle East, and Africa combined for about 25% of sales and Asia/Pacific accounts for more than 15%.

Sales and Marketing

Juniper sells its products directly and through distributors, resellers, and original equipment manufacturers (OEMs). More than 70% of revenue comes from telecom, cable, and cloud service providers with the rest from corporate customers. Juniper has resale agreements with Ericsson, Dimension Data, NEC Corp., and IBM.

Financial Performance

Juniper Networks has posted higher revenue in each of the past three years, but the increase gets smaller each year.

Revenue inched 1% higher in 2017 to $5 billion from 2016 as routing and security product delivered lower sales while switching and services came through with increases. The company blamed lower routing revenue (down 7%) on a shift by Cloud customers in the Americas to more automated, cost efficient, and scalable networks. Security revenue dropped (down 25%) as the company transitions to newer versions of the high-end SRX series. Switching revenue rose 12%, boosted by growth in its data center switching portfolio, particularly in the QFX product line (up 25% year-to-year). Service revenue rose 8% on strong renewal and attach rates of support contracts, as well as robust year-to-year services revenue growth in the Asia/Pacific and EMEA regions.

Juniper's profit fell by nearly half to about $306 million in 2017 from 2016. The company reduced research and development and sales and marketing costs, but general and administrative costs rose due to litigation. Further, Juniper spent more on restructuring in 2017, reducing headcount by about 450.

The company's cash on hand rose to about $2 billion in 2017 from about $1.8 billion in 2016.

Strategy

Juniper Networks is betting that helping customers move to cloud computing is the path to growth in the networking business. Beyond its traditional hardware products, the company has added a range of software applications to meet the industrywide shift to software management of networks. In its router business, the company offers the NorthStar WAN SDN (software defined network) controller for optimizing traffic on a network and it integrated its Contrail Networking SDN controller into its edge networking products. Some customers are moving from the older MX routing product, one of the company's most successful, to the newer PTX series. Overall traffic growth at cloud providers should hasten the transition and revenue should recover as more ports are sold.

Further strengthening Juniper's software portfolio was the acquisition of AppFormix. The software from AppFormix complements the analytics and machine learning capabilities of the Contrail product.

Juniper faces competition on all sides as its tries to generate revenue from cloud computing. Competitors include industry giants such as Huawei, Cisco Systems, and Nokia as well as smaller companies like Arista Networks and Brocade Communications Systems, which was acquired by Broadcom. Other competitors are Hewlett Packard Enterprise and Dell Technologies (because of its acquisition of EMC).

Mergers and Acquisitions

Juniper Networks' recent acquisitions were made to bolster its security and software offerings.

The 2017 deal for Cyphort Inc., a provider of security analytics for advanced threat defense, added to the capabilities of Juniper's Sky Advanced Threat Protection by increasing efficiency and performance.

In 2016 Juniper acquired AppFormix Inc., an optimization and management software platform for public, private and hybrid clouds, for about $50 million.

Also in 2016 Juniper bought the 88% interest it didn't own of BTI Systems Inc., an optical equipment provider, for about $25 million. The acquisition provides Juniper with optical transport solutions.

In a third 2016 deal Juniper paid about $74 million for 100% ownership of Aurrion Inc., a provider of fabless silicon photonic technology. The acquisition also bolsters Juniper's optical portfolio.

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Juniper Networks, Inc.

1133 Innovation Way
Sunnyvale, CA 94089-1228
Phone: 1 (408) 745-2000
Fax: 1 (408) 745-2100

Stats

  • Employer Type: Public
  • Stock Symbol: JNPR
  • Stock Exchange: NYSE
  • CEO: Rami Rahim
  • EVP and CFO: Ken Miller
  • CEO: Rami Rahim
  • 2017 Employees: 9,381

Major Office Locations

  • Sunnyvale, CA

Other Locations

  • Goleta, CA
  • Sacramento, CA
  • Alpharetta, GA
  • Chicago, IL
  • Westford, MA
  • Saint Louis, MO
  • Raleigh, NC
  • Bridgewater, NJ
  • New York, NY
  • Rochester, NY
  • Dublin, OH
  • Tulsa, OK
  • Herndon, VA
  • Sterling, VA
  • Virginia Beach, VA
  • Rio De Janeiro, Brazil
  • Kanata, Canada
  • Mississauga, Canada
  • Vancouver, Canada
  • Paris, France
  • Osaka, Japan
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