Juniper, Alcatel-Lucent make Q1 router gains, but still trail Cisco, says Synergy

Juniper Networks' (NYSE: JNPR) 6 percent gain in the service provider router and carrier Ethernet switch revenue market during the first quarter was promising, a Synergy report said, at a time when the overall market segment declined 6 percent.

Synergy Research Group said that all of the service provider router and Carrier Ethernet vendors have been operating in a "soft" market where revenues declined below the $3 billion threshold. On a regional basis, Juniper's North America revenues declined sequentially, but rose 10 percent year-over-year.  

During the first quarter, Juniper's routing revenue was $488.1 million, up year-over-year from $458 million in Q1 2012. Overall service provider revenue was $713 million, down 4 percent sequentially, but up 4 percent on a year-over-year basis.

The Sunnyvale, Calif.-based vendor's Q1 rise enabled it to "close the gap on Alcatel-Lucent," which reported that it won Belgacom and the University of Pittsburgh Medical Center (UPMC) as two new customers for its 7950 XRS core router platform.

Like Juniper, Alcatel-Lucent (NYSE: ALU) reported that its IP division's revenues rose 6.3 percent to €493 million ($642 million).

Jeremy Duke, Synergy's founder and chief analyst, said that "the signs are that both it and Alcatel-Lucent will give Cisco sterner competition this year."

A key barometer of growth for Juniper and other routing vendors will be how the large carriers will allocate their capital. AT&T (NYSE: T), which consists of 10 percent of the vendor's sales, said during its Q1 earnings call that it reduced its capex forecast for 2014 and 2015.

For more:
- see the release

Related articles:
Juniper Networks' service provider sales drive up Q1 revenue to $1.06 billion
Alcatel-Lucent Q1 rises to $4.2 billion on strong North America, VDSL2 sales

Suggested Articles

On Tuesday, the Communications Workers of America (CWA) announced it has reached an early agreement with CenturyLink.

In the age of the cloud, containers and Kubernetes, developers are increasingly becoming the key decision makers for enterprises.

AT&T's partnership with Microsoft last month was the telco's coming out party for its "public cloud first" strategy, which includes…