Juniper Networks, Inc. reports Q1'06 financial results

Net revenues for the first quarter of 2006 were $566.7 million, compared with $449.1 million for the first quarter of 2005, an increase of 26 percent.

"In the region, Juniper has had a very successful quarter, following on from a strong 2005 performance,"

commented Mohamad Abdul-Malak, Regional Director, Juniper Middle East and Africa. "We secured a number of key enterprise customers, including a number of service providers across the region, which will shortly be disclosed to the market. I am confident that Juniper will continue to deliver strong results in the Middle East for Q2 and the rest of 2006."

Net income on a GAAP basis for the first quarter of 2006 was $75.8 million or $0.13 per share, compared with a GAAP net income of $75.4 million or $0.13 per share for the first quarter of 2005. For comparative purposes, net income excluding stock-based compensation for the first quarter of 2006 was $91.9 million or $0.15 per share, compared with a net income excluding stock-based compensation of $77.8 million or $0.13 per share for the first quarter of 2005. The reconciliation between net income excluding stock-based compensation and GAAP net income is provided in a table below the Condensed Consolidated Statements of Operations.

"The first quarter reflected the continuing acceptance of Juniper's product portfolio with both our enterprise and service provider customers," commented Scott Kriens, chairman and CEO, Juniper Networks. "We will intensify our focus on execution in order to capitalize in an environment where our capabilities and the market requirements are aligning more clearly than ever before."

Juniper's ongoing focus on serving the needs of its global service provider and enterprise customers was reflected in a number of key accomplishments this quarter.

• Juniper continued to support its service provider customers as they transition to Next Generation Network infrastructures. China Telecom Shanghai and Cox Communications, for example, chose the T-series to provide the performance, reliability and scale to support the build-outs of their core IP infrastructures, while BT is deploying Juniper at both the core and the edge of its 21st Century Network. IPTV continued to drive demand for Juniper products. Working side by side with its partner, Siemens, Juniper garnered wins at T-Com and Fastweb in Europe. In addition, Juniper remains the sole sourced provider for the world's largest IPTV network, PCCW. Juniper was also chosen by Germany's leading TV station, RTL, to ensure quality of service and scalability for live broadcast content, via the M-series, multi-service edge router.

• On the enterprise side Juniper saw solid demand across the portfolio. Sharper Image, for example is deploying Juniper's Firewall/IPSec VPNs, SSL VPNs and WX appliances as it redesigns its network to increase performance, security and meet government mandates. Other key wins include Sara Lee, Canada's Globe and Mail, Daimler Chrysler, the North Atlantic Treaty Organization (NATO), which is securing its global network with Juniper's IDP solutions and the US Air force.

• Juniper's innovation engine continued this quarter with the delivery of the Secure Services Gateway (SSG), a new line of high performance firewall/VPN platforms with integrated local-area and wide-area interfaces. Strong customer traction has validated Juniper's strategy of delivering integrated branch solutions with no compromise between security and performance.