Juniper Warns of Lower Revenue for Q1
The networking vendor points to slower than expected demand from enterprises and deployment timing issues in the U.S. and Europe as the key reasons.Juniper Networks officials say revenue for the first quarter will come in lower than expected due to weak demand from enterprise customers and poor timing of deployments by some top-tier telecommunications companies in the United States and Europe. The company on April 11 reported that revenue for the first three months of the year will come in between $1.09 billion and $1.1 billion, a drop from previous expectations of $1.15 billion to $1.19 billion. The networking technology vendor is due to report official first-quarter financial numbers April 28. "Although we expect results to be lower than our initial guidance for the first quarter, we remain constructive on fiscal 2016 and expect growth from new products to contribute to our top line, coupled with our ongoing focus on cost discipline to drive non-GAAP operating margin expansion for the full year," Juniper CEO Rami Rahim said in a statement.
The warning on the quarterly numbers comes after a strong 2015 for the company, which competes with the likes of Cisco Systems and others. Juniper last year generated more than $4.8 billion in revenue, a 5 percent increase over 2014, and saw net income jump 40 percent year over year. However, Juniper officials, when reporting the numbers in late January, were cautious when issuing the company forecast for the first quarter, citing the global economic environment and "potential lumpiness in customer investment patterns."