Juniper Networks, Inc.

  • Overview

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 EricssonIBM, and Nokia Siemens, and it counts Ingram Micro and NEC among its distribution partners. About half of sales are made outside 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 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 almost half of sales. Europe, the Middle East, and Africa combined account for another 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). It has resale agreements with Ericsson, IBM, and Nokia Siemens, and it counts Ingram Micro and NEC among its distribution partners. Verizon Communications accounts for about 10% of overall sales.

Financial Performance

Revenue dipped slightly in 2012 to $4.4 billion due to a decline in core and edge legacy routing and firewall products. Profits fell by more than 50% to about $187 million from higher operating costs, particularly in the areas of research and development, administration (legal and consulting fees), and restructuring charges.

Strategy

Juniper's technology opened a market long dominated by rival Cisco Systems and has helped it take a chunk out of the powerhouse's market share. Juniper is among a number of companies that have touted superior technology to differentiate their offerings, but designs its equipment to be compatible with that of the ubiquitous Cisco platforms.

Mergers and Acquisitions

Juniper uses 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.

Breaking a five-year hiatus from acquisitions, the company bought five companies in 2010 to add new products and technology to its portfolio. It bought Ankeena Networks to help address the fast-rising volume of video traffic on fixed and mobile networks. Juniper also bought Internet video storage and delivery systems specialist Blackwave and SMobile Systems to add security technology for smart phones and tablets to its Junos Pulse product line. Additionally, it paid $152 million to buy Trapeze Networks from Belden to boost its enterprise business in acknowledgement that demand from telecommunications companies may be set to diminish. Finally, it paid $95 million in cash to acquire Altor Networks, a provider of network security systems for virtual (cloud-based) servers, as demand for secure cloud computing services from businesses in many industries increases.

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Juniper Networks, Inc.


1194 N Mathilda Ave
Sunnyvale, CA 94089-1206
Phone: 1 (408) 745-2000
Fax: 1 (408) 7452100
www.juniper.net

STATS


  • Employer Type: Public
  • Stock Symbol: JNPR,
  • Stock Exchange: , NYSE
  • CEO and Director: Kevin Johnson
  • Chairman: Scott Kriens
  • Vice Chairman and CTO: Pradeep Sindhu

Major Office Locations

  • Sunnyvale, CA