Juniper meets Q1 analyst expectations, but forecasts a tough Q2

Juniper Networks (NYSE: JNPR) continued its ongoing revenue drive in Q1 with results that met analyst expectations, but uncertainty over the Japan earthquake and the debut of its new Ethernet product line could have an effect on Q2 earnings.

In Q1 2011, Juniper reported that revenues increased 21 percent on a year-over-year basis to $1.1 billion. It also reported GAAP net income of $130 million, or $0.24 per diluted share, and non-GAAP net income of $178 million, or $0.32 per diluted share for the first quarter of 2011.

However, concerns remain over its business in Japan, a market that contributes 5-8 percent to its revenue from large carriers like NTT. During the earnings call, Juniper's CFO Robyn Denholm acknowledged that the earthquakes could pose an impact to its revenue over the next few quarters. She added that Juniper could see a "significant pause" in the Japanese market in Q2.

Juniper forecast Q2 revenue of $1.13-$1.18 billion, while analysts expected earnings of 36 cents a share, on revenue of $1.16 billion.

While financial analysts acknowledged concerns over the Japanese business, they said the bigger issue really surrounds their product roadmap, including its Ethernet switching line.

"Investors are likely to look past the Japan issue" but put more scrutiny on its product lines, said Joanna Makris, Mizuho Securities analyst.

For more:
- see the earnings release
- Reuters has this article

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Juniper Q3: Order backlog drives down sales
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