Juniper Networks has issued a lower-than-expected first quarter revenue forecast of $1.09 billion to $1.1 billion due to U.S. and EMEA service providers delaying orders and slower demand from enterprise customers, replacing its previous guidance of $1.15 to $1.19 billion.
"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 topline, coupled with our ongoing focus on cost discipline to drive non-GAAP operating margin expansion for the full year," said CEO Rami Rahim in a statement.
News of the lowered outlook should not be all that surprising. At the end of the fourth quarter 2015, the vendor issued a conservative first quarter revenue outlook of about $1.17 billion, plus or minus $20 million.
Further, the company now expects non-GAAP net income per diluted share of 35 to 37 cents, compared to the Company's previous guidance of 42 cents to 46 cents per diluted share.
Analysts polled by Thomson Reuters I/B/E/S forecast first quarter revenue of $1.09 billion to $1.10 billion and adjusted profit of 35 cents to 37 cents per share.
Investors did not take kindly to the lower forecast as Juniper's shares dropped $1.39, or almost 6 percent, to $23.50, in late Monday afternoon trading.
Juniper's shares continued to slide, reaching $22.69, down $2.20, or 8.84 percent in Tuesday morning trading on the New York Stock Exchange.
The company will report its first quarter results on April 28.
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