Juniper blames economic malaise for lackluster equipment sales

Juniper Networks (NYSE: JNPR), like its main competitor Cisco Systems (Nasdaq: CSCO), has forecasted softer growth in router sales amid economic uncertainty.

Earlier this week, the vendor cut its three year revenue growth forecast (2013-2016) to between 9 and 12 percent, down from the 20 percent growth rates it projected.

In addition, the vendor cut its gross margin from 63 to 65 percent, down to 63 to 66 percent, a factor it attributed to low-margin products.     

While this is not great news for the vendor, which just won a major contract for its PTX platforms with Verizon, analysts said the guidance reflects the fact that many customers are keeping a tighter rein on their capital spending budgets.

For more:
 - Total Telecom has this article

Related articles:
Juniper names low latency expert Andrew Bach as its financial services chief architect
Verizon to deploy Juniper's PTX for its converged MPLS core network
Juniper's Q1 revenue down 6%, but still surpasses analyst expectations

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