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 for 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 to protect from cyberattacks. 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, and Cloud Customer Platform series, generate more than 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 15%, and security products, the SRX series among others, less than 10%.

To get its products made, Juniper relies on contract manufacturers - Celestica; Flex Ltd., Accton Technology, and Alpha Networks.

Geographic Reach

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 25% of sales, and Asia/Pacific makes up for about 15%

Sales and Marketing

Juniper sells its products directly and through distributors, resellers, and original equipment manufacturers (OEMs). About 70% of revenue came 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

In 2016 Juniper posted its best-ever revenue, but profit slipped below 2015's figure.

The company's revenue rose 3% to about $5 billion from 2015, driven by the Switching and Services segments. Switching sales rose 12%, boosted by a 50% increase of sales of the company's QFX products. Service revenue rose 13% from being packaged with other products and contract renewals. Lower demand from telecommunications customers reduced the Routing segment's revenue 6%. Security sales fell nearly 120% with the refresh of the MRX products underway and the phase-out of the Screen OS and other legacy products. The Europe/Middle East/Africa region was the only geographic segment to post lower revenue for 2016, due to reduced sales to companies moving to cloud computing and the timing of deployments for large telecom companies. Juniper also noted that macroeconomic uncertainties in the region and pricing pressures contributed to the revenue decline.

Juniper's net income dropped 6% to $593 million in 2016 from 2015 because of pricing pressures and product mix. The company also set aside about $11 million to pay for remediation of defective components from a third-party supplier. Juniper had lower expenses as a percentage of revenue in 2016 from 2015.

Operating cash flow rose to $1.1 billion in 2016 from $892 million in 2015 as a result of timing differences in working capital.

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.

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.

After a down year in 2016 for its security products, Juniper looks for a rebound with products like Junos Space Security Director for security management and Sky ATP, its first software-as-a- service offering.

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 is being acquired by Broadcom. Other competitors are Hewlett Packard Enterprise and Dell Technologies (because of its acquisition of EMC).

Mergers and Acquisitions

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.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

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
  • 2016 Employees: 9,832

Major Office Locations

  • Sunnyvale, CA

Other Locations

  • Phoenix, AZ
  • Goleta, CA
  • Sacramento, CA
  • Sunrise, FL
  • Alpharetta, GA
  • Chicago, IL
  • Westford, MA
  • Columbia, MD
  • Saint Louis, MO
  • Raleigh, NC
  • Bridgewater, NJ
  • New York, NY
  • Rochester, NY
  • Columbus, OH
  • Dublin, OH
  • Tulsa, OK
  • Herndon, VA
  • Richmond, VA
  • Sterling, VA
  • Virginia Beach, VA
  • Bellevue, WA
  • Rio De Janeiro, Brazil
  • Mississauga, Canada
  • Vancouver, Canada
  • Paris, France
  • Osaka, Japan
- Show Less + Show More