JUNIPER NETWORKS, INC.

Juniper Networks has blossomed in a landscape dominated by  Cisco. 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.

Operations

Juniper has two primary operating segments: Platform Systems Division (PSD) and Software Solutions Division (SSD). PSD offers routing and switching equipment used in service provider, enterprise, and public sector networks to control and direct network traffic. It accounts for about 80% of revenue. SSD offers security-based and routing products and services such as virtual gateways, firewalls, and virtual private networks (VPNs). It makes up the other 20% of sales.

The company relies on three contract manufacturers to produce its products – Canada-headquartered Celestica;  Flextronics, headquartered in Singapore; and Taiwanese firm  Accton Technology. In an effort at consolidation, it ended its contract with US-based  Plexus in 2013.

Geographic Reach

The company does business in more than 100 countries. The US represents its largest market, accounting for half of sales. Europe, the Middle East, and Africa combined account for about 30% of sales, and Asia makes up the other 20%.

Sales and Marketing

Juniper sells its products directly and through distributors, resellers, and original equipment manufacturers (OEMs). About 65% of revenue came from service providers with the rest from corporate customers. In 2013, no customer accounted for more than 10% of sales, which  Verizon Communications did in 2012.

Financial Performance

Juniper’s revenue increased nearly 7% to $4.6 billion in 2013 from $4.37 billion in 2012. The company had higher sales volume of its edge routing products and switching products to service providers and enterprise customers. Juniper’s high-performance networking products such as its High-IQ networks were in demand as were its cloud environments for data centers. However, sales of the company’s security products declined.

Net income rose about 135% to about $440 million in 2013 from $187 million in 2012. Juniper’s higher sales and a 5% drop in research and development expenses and a 16% decline restructuring charges helped the company reach its highest net income since 2010.

Cash flows from operations increased by about $200 million in 2013 from 2012, a 31% jump. The increase was due to the higher net income together with lower restructuring charges and higher accounts receivable and lower accounts payable.

Strategy

Juniper in 2014 embarked on what it calls an integrated operations plan (IOP), designed to focus the company on products for its service provider and enterprise customers whose demand for High-IQ Networks and best-in-class cloud environments are driving growth. The company plans to organize its engineering, sales and marketing, and research and development around the strategy to streamline operations, its business portfolio, and operations.

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.

Before the IOP Juniper was working on a restructuring plan, which involved workforce reductions, contract terminations, and project cancellations – it recorded about $28 million in cancellations in 2013. The company has about 9,483 employees at the end of 2013 compared with 9,234 at the end of 2012.

Mergers and Acquisitions

Normally a fairly acquisitive company, Juniper put away its pocketbook in 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.

The previous year it bought assets related to network timing synchronization and monitoring systems designed by California-based Brilliant Telecommunications for $4.5 million. Juniper's interest in Brilliant's technology stemmed from its effort to improve the flexibility of core product lines as the complexity and intersections of wired and mobile networks increases.

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JUNIPER NETWORKS, INC.


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

STATS


  • Employer Type: Public
  • Stock Symbol: JNPR
  • Stock Exchange: NYSE
  • CEO: Rami Rahim
  • CEO: Rami Rahim
  • Vice Chairman and CTO: Pradeep S. Sindhu

Major Office Locations

  • Sunnyvale, CA

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