Juniper Networks' Q2 2009 earnings paint a rather unflattering picture as the company reported that its profit dipped 88 percent year-over-year. The company's shares, which have been on an upward path since March, dropped 6.4 percent to $24.85 in after-hours trading despite beating Wall Street estimates. For the second quarter, Juniper reported earnings were $14.8 million, or 3 cents a share, down from $120.4 million, or 22 cents a share, in Q2 2008.
Not all of Juniper's financial news was bad, however. Amid falling profits, the company reported that second-quarter net revenues increased 3 percent sequentially to $786 million. These results beat a Thomson Reuters poll that predicted the company's per-share earnings would be 18 cents on revenue of $767 million. Similar to other telecom equipment vendors, Juniper also reported that while equipment sales dropped by 16 percent, professional services sales increased by 16 percent.
Although service provider sector sales remain flat, Juniper's CEO Kevin Johnson said that growth in enterprise sales has also helped the company boost its net revenue. "With service provider sales relatively flat quarter-over-quarter, our sequential revenue increase was supported by double digit quarter-over-quarter growth in the enterprise market," he said in a release.
For more:
- Here's the official release
- Wall Street Journal/Dow Jones has this article
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