Juniper Networks Q1 2021 Earnings Report
Key Takeaways
Juniper Networks reported strong Q1 2021 results, with revenue exceeding expectations and better-than-expected product orders across all customer verticals. The company's backlog grew sequentially and year-over-year, and near-term visibility is strong. Juniper believes its investments are paying off and should enable sustained revenue growth and improved profitability.
Net revenues were $1,074.4 million, an increase of 8% year-over-year.
GAAP operating margin was 2.6%, a decrease from 3.9% in the first quarter of 2020.
Non-GAAP net income was $98.5 million, an increase of 28% year-over-year.
Total cash, cash equivalents, and investments as of March 31, 2021 were $1,764.6 million.
Juniper Networks
Juniper Networks
Juniper Networks Revenue by Geographic Location
Forward Guidance
Juniper Networks provided its outlook for the quarter ending June 30, 2021. Revenue is expected to be approximately $1,140 million, plus or minus $50 million. Non-GAAP net income per share will be approximately $0.38, plus or minus $0.05.
Positive Outlook
- Revenue will be approximately $1,140 million, plus or minus $50 million.
- Non-GAAP gross margin will be approximately 59.5%, plus or minus 1.0%.
- Non-GAAP operating margin will be approximately 14.6% at the mid-point of revenue guidance.
- Non-GAAP other income and expense (OI&E) will be an expense of approximately $12 million.
- Non-GAAP tax rate will be approximately 19.5%.
Challenges Ahead
- Non-GAAP operating expenses will be approximately $512 million, plus or minus $5 million.
- There is a worldwide shortage of semiconductors impacting many industries.
- We are experiencing ongoing supply constraints which have resulted in extended lead times.
- Extended lead times will likely persist for the next few quarters.
- The outlook assumes that the exchange rate of the U.S. dollar to other currencies will remain relatively stable at current levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income