WASHINGTON (dpa-AFX) - Computer networking gear maker Juniper Networks Inc. (JNPR) said Tuesday after the markets closed that its second quarter profit more than doubled from last year, helped by higher revenue and a gain from a legal settlement.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. However, the company forecast third quarter revenue and earnings below analysts' current consensus estimates.
'Juniper delivered another solid quarter of revenue growth, with continued diversification across our target verticals. With our focused strategy, we are seeing clear signs of success with customers who are in a build cycle for High-IQ networks and Cloud ecosystems,' said Shaygan Kheradpir, chief executive officer, Juniper Networks.
Juniper also said that it has agreed to sell its Junos Pulse product portfolio to private equity firm Siris Capital for about $250 million.
Additionally, the company said it has initiated a quarterly cash dividend of $0.10 per share. This is the company's first cash dividend in history. It will be payable on September 23 to shareholders of record on September 2.
Juniper shares are currently losing 4.71% in after hours trading after closing the day's regular trading session at $24.82, up 37 cents or 1.51%. The shares trade in a 52-week range of $18.36 to $28.75.
The Sunnyvale, California-based company reported net income for the second quarter of $221.1 million or $0.46 per share, compared to $97.9 million or $0.19 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $190.3 million or $0.40 per share, compared to $148.1 million or $0.29 per share in the prior year quarter.
On average, 35 analysts polled by Thomson Reuters expected the company to earn $0.38 per share for the second quarter. Analysts' estimates typically exclude special items.
Net revenues for the second quarter rose 7% to $1.23 billion from $1.15 billion in the same quarter last year. Thirty-four analysts had a consensus revenue estimate of $1.22 billion for the second quarter.
Looking forward to the third quarter, the company forecasts revenue of $1.15 billion to $1.20 billion and adjusted earnings of $0.35 to $0.40 per share. Analysts currently expect the company to earn $0.44 per share on revenue of $1.26 billion for the third quarter.
In late February, Juniper came out with an integrated operating plan to refocus on key innovations as demand for High-IQ Networks and best-in-class cloud environments gain momentum. The company also committed to return at least $3 billion to shareholders over the next three years through share repurchases and dividends. The company's board authorized $2 billion in share buyback to be executed through the end of the first quarter of 2015, including a $1.2 billion accelerated repurchase program. Juniper also announced plans for the initiation of quarterly cash dividend of $0.10 per share in the third quarter of 2014.
In April, Juniper said that it expects to reduce its global workforce by about 6% and consolidate its facilities, as part of efforts to streamline its business structure and focus on high-growth segments under the company's integrated operating plan.
Juniper's announcements came as hedge fund Elliott Management, which owned a 6.2% stake in the company, was pressing for a three-pronged shareholder value plan, comprising cost cuts, return of cash to shareholders and optimization of the company's product portfolio.
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