Juniper Networks not only announced its fourth quarter results on last Tuesday but also warned investors of its first quarter results could be weakened for delayed cloud services to large customer.
Net income reported by the networking company for the fourth quarter was $192 million or 56 cents a share whereas on non-GAAP criteria, earnings remained 59 cents per share with revenue declined by 5 percent year-over-year to $1.2 billion compared to Wall Street’s earnings expectations of 57 cents a share on revenue of $1.22 billion.
The cash and cash equivalents along with investments which the company was holding at the end of fourth quarter were $3.75 billion and that came in below from same quarter a year ago amount of $4.02 billion.
Sales in fourth quarter disappointed the company as weakness in dealing with customers of cloud and service provider businesses remained more than the strength gained by the company in its enterprise business, said Rami Rahim, Chief Executive Officer of the company.
Rahim also added that company is stepping ahead to boost its sales and putting its efforts to get its share of profit from the lucrative opportunities at the end market which company is intending to enter in 2019 and is confident over its strategy as well as products that could capture the market.
In addition to large cloud customer who will cause the Juniper struggling in the first quarter, the other factors which will also hurt its first quarter results cited by the company was partial US government shutdown and uncertain geopolitical situation which resulted in a comparatively slow pace of first quarter of 2019.
In the first quarter, company is expecting to be generating revenue of about $980 million with an exception of up or down by 30 million, while for the non-GAAP earning company is expecting arrange of 17 cents to 23 cents share.