SUNNYVALE, CA–(Marketwired – January 26, 2017) – Juniper Networks ( NYSE: JNPR), an industry leader in automated, scalable and secure networks, today reported preliminary financial results for the three months and twelve months ended Dec. 31, 2016 and provided its outlook for the three months ending March 31, 2017.

Q4 2016 Results:

Net revenues for the fourth quarter of 2016 were $1,385.6 million, an increase of 5% year-over-year and an increase of 8% sequentially.

Juniper’s GAAP operating margin for the fourth quarter of 2016 was 21.5%, an increase from 21.2% in the fourth quarter of 2015, and an increase from 19.5% in the third quarter of 2016.

Non-GAAP operating margin for the fourth quarter of 2016 was 26.5%, an increase from 26.0% in the fourth quarter of 2015, and an increase from 24.4% in the third quarter of 2016.

Juniper posted GAAP net income of $197.4 million, flat year-over-year, and an increase of 15% sequentially. GAAP diluted earnings per share for the fourth quarter of 2016 was $0.51.

Non-GAAP net income was $254.3 million, an increase of 3% year-over-year, and an increase of 15% sequentially. Non-GAAP diluted earnings per share for the fourth quarter of 2016 was $0.66.

Full Year 2016 Results:

For fiscal year 2016, Juniper’s net revenues were $4,990.1 million, an increase of 3% year-over-year.

For fiscal year 2016, Juniper’s GAAP operating margin was 18.0%, compared to 18.8% for the prior fiscal year.

Non-GAAP operating margin for fiscal year 2016 was 23.4%, compared to 24.0% in fiscal year 2015.

For fiscal year 2016, Juniper posted GAAP net income of $601.2 million, or $1.55 per diluted share. Non-GAAP net income was $2.09 per diluted share for fiscal year 2016, an increase of 3% year-over-year.

The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Preliminary Net Revenues by Market table below.

“I am pleased to report year-over-year revenue and non-GAAP earnings growth after a challenging start to 2016,” said Rami Rahim, chief executive officer at Juniper Networks. “We believe we are successfully executing on our strategy to diversify our business and capture share in the cloud and cloud-enabled segments of our market. Our innovation pipeline and product portfolio are strong and position us well as we head into 2017.”

“We maintained our focus on disciplined operating expense management while investing prudently for growth,” said Ken Miller, chief financial officer at Juniper Networks. “In addition, we delivered strong cash flows from operations and I believe we are well positioned for the market opportunities ahead.”

Other Financial Highlights

Total cash, cash equivalents, and investments as of Dec. 31, 2016 were $3,657 million, compared to $3,480 million as of Sept. 30, 2016, and $3,192 million as of Dec. 31, 2015.

Juniper’s net cash flows provided by operations for the fourth quarter of 2016 was $334 million, compared to net cash flows provided by operations of $245 million in the third quarter of 2016, and $117 million in the fourth quarter of 2015.

Days sales outstanding in accounts receivable, or “DSO,” was 68 days in the fourth quarter of 2016, compared to 53 days in the third quarter of 2016 and the fourth quarter of 2015.

Capital expenditures were $52 million and depreciation and amortization expense was $54 million during the fourth quarter of 2016.

Juniper’s Board of Directors has declared a quarterly cash dividend of $0.10 per share to be paid on March 22, 2017 to shareholders of record as of the close of business on March 1, 2017.

During the fourth quarter of 2016, the Company paid $38 million in dividends and did not repurchase any shares. Since the first quarter of 2014, inclusive of share repurchases and dividends, we have returned $4.1 billion of capital to shareholders, delivering on our commitment to return $4.1 billion by the end of 2016, and reduced our diluted share count by 22%.

Outlook

These metrics are provided on a non-GAAP basis, except for revenue and share count. The outlook assumes that the exchange rate of the U.S. dollar to other currencies will remain relatively stable at current levels.

Juniper Networks is focused on executing to its strategy and capitalizing on the momentum of its new products within the target markets it serves.

The gross margin guidance for the quarter reflects typical seasonal patterns, primarily due to sequentially lower revenue volume. While we expect to continue to see pricing pressure and product mix fluctuations, we remain focused on disciplined cost management.

As a reminder, the operating expense guidance for the quarter includes the annual reset of variable compensation and the typical seasonal increase in fringe costs.

Juniper’s guidance for the quarter ending March 31, 2017 is as follows:

• Revenues will be approximately $1,200 million, plus or minus $30 million.
• Non-GAAP gross margin will be approximately 62.5%, plus or minus 0.5%.
• Non-GAAP operating expenses will be approximately $515 million, plus or minus $5 million.
• Non-GAAP operating margin will be approximately 19.5% at the midpoint of revenue guidance.
• Non-GAAP tax rate approximately flat from the fourth quarter.
• Non-GAAP net income per share will range between $0.38 and $0.44 on a diluted basis. This assumes a flat share count from the fourth quarter.

All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring charges (benefits), impairment charges, professional services related to non-routine stockholder matters, litigation settlement and resolution charges, gain or loss on equity investments, retroactive impact of certain tax settlements, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions, divestitures, or joint ventures that may occur in the quarter. Juniper is unable to provide a reconciliation of non-GAAP guidance measures to corresponding GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. For example, share-based compensation expense is impacted by the Company’s future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company’s stock will trade in those future periods. Amortization of intangible assets is significantly impacted by the timing and size of any future acquisitions. The items that are being excluded are difficult to predict and a reconciliation could result in disclosure that would be imprecise or potentially misleading. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically and may continue to vary significantly from quarter to quarter.

Fourth Quarter and Fiscal Year 2016 Financial Commentary Available Online

A CFO Commentary reviewing the Company’s fourth quarter and fiscal year 2016 financial results, as well as first quarter 2017 financial outlook will be furnished to the SEC on Form 8-K and published on the Company’s website at http://investor.juniper.net. Analysts and investors are encouraged to review this commentary prior to participating in the conference call webcast.

Conference Call Webcast

Juniper Networks will host a conference call webcast today, Jan. 26, 2017, at 2:00 pm PT, to be broadcast live over the Internet at http://investor.juniper.net. To participate via telephone in the US, the toll free dial-in number is 1-877-407-8033. Outside the US, dial +1-201-689-8033. Please call 10 minutes prior to the scheduled conference call time. The webcast replay will be archived on the Juniper Networks website.