Juniper Income Up Sevenfold in Quarter, Matching Forecasts

SUNNYVALE, Calif. — Juniper Networks Inc. posted a sevenfold increase in first-quarter net income, matching forecasts, but warned that 2001 earnings and revenue will miss expectations because of the slowing U.S. economy and cutbacks in equipment spending by many service providers.

Juniper, which makes routers that speed traffic along communications networks, said pro forma earnings grew to $85.4 million, or 25 cents a share, from $10.5 million, or 3 cents, a year ago. Revenue surged 420% to $332.1 million, which was slightly lower than the $340 million expected by U.S. Bancorp Piper Jaffray.

But Sunnyvale, Calif.-based Juniper, whose core routers compete heavily with Cisco Systems Inc., cut its growth forecasts, saying it had limited visibility on near-term prospects because of the softening economy and spending cuts on network gear by telephone companies and other service providers.

Juniper said it expects second-quarter earnings of 25 cents a share, with revenue similar to that of the first quarter. Wall Street analysts had expected second-quarter earnings of 26 cents a share, according to First Call.

For the full year, Juniper expects earnings of 90 cents to $1 a share, on revenue growth of 85% to 100%. Analysts on average were expecting earnings of $1.05 and revenue of $1.6 billion, a 137% increase from a year ago.

Despite the warning, Juniper’s stock gained $7.62 to $50.38 in heavy Nasdaq trading after some analysts issued positive comments on the company.