On October 26, 2023, Juniper Networks Inc (JNPR, Financial) released its preliminary financial results for the third quarter of 2023. The company reported a decrease in net revenues to $1,397.8 million, a 1% decrease year-over-year and a 2% decrease sequentially. The GAAP operating margin was 6.3%, a decrease from 10.6% in the third quarter of 2022, and a decrease from 9.9% in the second quarter of 2023.
Financial Performance
Despite the decrease in net revenues and GAAP operating margin, Juniper Networks Inc (JNPR, Financial) reported an increase in non-GAAP net income. The non-GAAP net income was $193.9 million, an increase of 2% year-over-year, and an increase of 3% sequentially, resulting in non-GAAP diluted net income per share of $0.60. The GAAP net income was $76.1 million, a decrease of 37% year-over-year, but an increase of 212% sequentially, resulting in diluted net income per share of $0.24.
Company's Commentary
Juniper's CEO, Rami Rahim, commented on the results,
“We delivered better than expected Q3 results due to another record quarter in our enterprise business, which represented more than 50% of total company revenue for the first time in the company’s history,”He also mentioned the company's challenges,
“While we are continuing to experience headwinds from our cloud and service provider customers, many of which are still digesting prior purchases, our enterprise momentum remains strong and provides confidence in our future growth prospects.”
Balance Sheet and Other Financial Results
The company's total cash, cash equivalents, and investments as of September 30, 2023, were $1,418.0 million, compared to $1,254.9 million as of September 30, 2022, and $1,296.4 million as of June 30, 2023. Cash flows provided by operations for the third quarter of 2023 were $329.2 million, compared to $51.8 million in the third quarter of 2022, and $343.0 million in the second quarter of 2023.
Outlook
For the fourth quarter of 2023, Juniper Networks Inc (JNPR, Financial) expects revenue to be approximately $1,400 million, plus or minus $50 million. Non-GAAP gross margin is expected to modestly increase due to expected lower supply chain costs. The company also expects a sequential decline in non-GAAP operating expenses. Non-GAAP net income per share is expected to be approximately $0.63, plus or minus $0.05.
Explore the complete 8-K earnings release (here) from Juniper Networks Inc for further details.
