Juniper Networks (JNPR), a provider of network routing, switching and security, has announced a 2.26 times jump in profit for the quarter ended Jun. 30, 2014. The company earned $221.10 million or $0.46 a share in the second-quarter compared with $97.90 million or $0.19 a share a year ago.
Revenue during the second-quarter climbed 6.85 percent to $1229.50 million from $1150.70 million in the last year period. Adjusted non-GAAP earnings per share came in at $0.40, when analysts expected $0.38.
Gross margin contracted by 176 basis points over the last year period to 60.85 percent. Total expenses as a percentage of revenues increased to 90.57 percent from 87.96 percent in the same period last year. That has resulted in contraction of 261 basis points in operating margins to 9.43 percent.
The company reported operating income of $115.90 million, compared with operating income of $138.50 million in the previous year period.
''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.
''I am pleased to report our sixth consecutive quarter of year-over-year strong earnings expansion,'' said Robyn Denholm, chief financial and operations officer, Juniper Networks. ''We continue to generate strong operating cash flows and have made good progress toward our operating expense and capital allocation goals. We have done so by being very mindful of how we allocate resources to ensure we continue to invest in R&D that will drive Juniper’s growth well into the future.''
For the quarter ending Sep. 30, 2014, the company expects revenues to be in the range of $1,150 million to $1,200 million. It expects non-GAAP net income per share to be in the range of $0.35 and $0.40 on a diluted basis.
Cash Flow
Juniper Networks has generated cash of $551 million from operating activities during the first half, $275.50 million when compared with the last year period. The company has generated 22.96 cents of operating cash flow in every sales dollar for the first half, up from 12.47 cents in the same period last year.
The company has generated cash of $55.90 million from investing activities during the first half, as against cash outgo of $300.80 million in the last year period. It has made net capital expenditure of $98.30 million during the first half, which was lower by 30.92 percent or $44 million, from a year ago.
The company's free cash flow accounted for 82.16 percent of operating cash flow for the first half, compared with 48.35 percent in the last year period.
The company has spent $731.10 million cash to meet financing activities during the first half, as against cash outgo of $132.60 million in the last year period. It has borrowed net of $346.10 million through debt during the first half. It has spent net of $785.90 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $2159.80 million, down 4 percent or $90.10 million from Jun. 30, 2013.
Working Capital
Juniper Networks has witnessed a decline in the working capital over the last one year. The company's working capital stood at $1924.20 million as at Jun. 30, 2014, down $307.10 million or 13.76 percent from $2231.30 million on Jun. 30, 2013. It registered a decrease in current ratio to 2.22 as at Jun. 30, 2014 from 2.57 on Jun. 30, 2013.
Debt Position
The company has witnessed an increase in long-term debt over the last one year. As on Jun. 30, 2014, long-term debt stood at $1348.90 million, up 34.98 percent or $349.60 million, from Jun. 30, 2013. The company's total debt was 13.31 percent of total assets as on Jun. 30, 2014, compared with 9.98 percent on Jun. 30, 2013.
Shares of Juniper Networks gained $0.37 or 1.51 percent to settle at $24.82 on Tuesday.
