- In the quarter, Juniper Networks’ net revenues were $1,269.6 million with an increase of 8% year-over-year.
- In the third quarter, the company aims to work closely with suppliers to mitigate the effects of semiconductor shortages.
- The company expects solid revenue growth in the third quarter.
Secure and AI-driven network solutions provider, Juniper Networks reported preliminary financial results for the second quarter of 2022, which ended June 30. The company also shared its outlook for the next quarter which will end on September 30. In the second quarter, the company managed to increase its net revenues both year-over-year and sequentially.
Financial performance and outlook
In the second quarter of 2022, the company’s net revenues increased by 8% year-over-year or 9% compared to the previous quarter, to $1,269.6 million. GAAP operating margin was 8.5%, an increase from 7.3% in the second quarter of 2021, and an increase from 5.0% in the first quarter. GAAP net income was $113.4 million, increased by 83% year-over-year and 104% sequentially. Non-GAAP operating margin was 13.9%, a decrease from 15.8% in the second quarter of 2021, and an increase from 11.8% in the first quarter of 2022. Non-GAAP net income was $136.4 million, decreased by 3% year-over-year and increased by 34% compared to the previous quarter.
At the end of the quarter, total cash, cash equivalents, and investments were $1,285.6 million, compared to $1,815.4 million at the end of the 2nd quarter of 2021 and $1,668.9 million at the end of the first quarter of 2022. The company also shared its outlook for the next quarter. The company aims to resolve supply chain challenges caused by the semiconductor shortage. The company is also focusing on working with suppliers to mitigate the effects of disruptions. In the third quarter, the company expects solid revenue growth. The company’s guidance for the quarter ending September 30, 2022, is as follows:
- Revenue will be approximately $1,350 million, plus or minus $50 million.
- Non-GAAP gross margin will be approximately 56.5%, plus or minus 1.0%.
- Non-GAAP operating expenses will be approximately $550 million, plus or minus $5 million.
- Non-GAAP operating margin will be approximately 15.8% at the mid-point of revenue guidance.
- Non-GAAP other income and expense (OI&E) will be near Q2’22 levels.
- Non-GAAP tax rate will be approximately 19.5%.
- Non-GAAP net income per share will be approximately $0.50, plus or minus $0.05. This assumes a share count of approximately 330 million.
Rami Rahim, CEO of Juniper Networks said,
« We exceeded our revenue forecast during the June quarter and delivered a second consecutive quarter of double-digit year-over-year product revenue growth. Demand signals remain healthy and we are seeing attractive opportunities across our enterprise, cloud and service provider markets. Based on this momentum, the backlog we have built, and our latest expectations regarding supply, I am increasingly optimistic regarding our revenue growth prospects for the year. »