SUNNYVALE, Calif.: Juniper Networks (NYSE: JNPR), a leader in secure, AI-Native Networks, today reported preliminary financial results for the three months ended March 31, 2024.

Proposed Merger with Hewlett Packard Enterprise

As announced on January 9, 2024, Hewlett Packard Enterprise (“HPE”) plans to acquire Juniper Networks in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion. The transaction is currently expected to close in late calendar year 2024 or early calendar year 2025, subject to receipt of regulatory approvals, and satisfaction of other customary closing conditions.

First Quarter 2024 Financial Performance

Net revenues were $1,148.9 million, a decrease of 16% year-over-year, and a decrease of 16% sequentially.

GAAP operating margin was (1.2)%, a decrease from 8.4% in the first quarter of 2023, and a decrease from 9.2% in the fourth quarter of 2023.

Non-GAAP operating margin was 10.6%, a decrease from 14.8% in the first quarter of 2023, and a decrease from 18.3% in the fourth quarter of 2023.

GAAP net loss was $0.8 million, a decrease of 101% year-over-year and sequentially, resulting in diluted net loss per share of $(0.00).

Non-GAAP net income was $96.6 million, a decrease of 38% year-over-year, and a decrease of 51% sequentially, resulting in non-GAAP diluted net income per share of $0.29.

The reconciliation between GAAP and non-GAAP financial measures is provided in a table immediately following the Preliminary Net Revenues by Geographic Region table below.

“While many of our customers continue to be impacted by macro headwinds and the digestion of previously placed orders, we are starting to see a recovery in demand from our cloud customers and saw another quarter of double-digit order growth in our Mist-led business,” said Juniper CEO, Rami Rahim. “I remain optimistic regarding our long-term growth prospects, particularly as customers adopt our AI offerings, both for network operations and data center use cases.”

“We delivered strong non-GAAP gross margin and better than seasonal expense trends during the March quarter,” said Juniper’s CFO, Ken Miller. “We remain focused on profitability, while making the necessary investments to drive long-term growth.”

Balance Sheet and Other Financial Results

Total cash, cash equivalents, and investments as of March 31, 2024 were $1,534.9 million, compared to $1,191.0 million as of March 31, 2023, and $1,324.3 million as of December 31, 2023.

Net cash flows provided by operations for the first quarter of 2024 were $325.0 million, compared to $191.5 million in the first quarter of 2023, and $9.1 million in the fourth quarter of 2023.

Days sales outstanding in accounts receivable was 64 days in the first quarter of 2024, compared to 70 days in the first quarter of 2023, and 69 days in the fourth quarter of 2023.

Capital expenditures were $34.8 million, and depreciation and amortization expense was $45.1 million during the first quarter of 2024.

Capital Return

Our Board of Directors has declared a cash dividend of $0.22 per share to be paid on June 24, 2024 to stockholders of record as of the close of business on June 3, 2024. We remain committed to paying our dividend; we have suspended our stock repurchase program in accordance with the terms of the merger agreement with HPE.

First Quarter 2024 Financial Commentary Available Online

A CFO Commentary reviewing Juniper Networks’ preliminary first quarter 2024 financial results will be published on Juniper Networks’ website at http://investor.juniper.net.

In light of the proposed transaction with HPE, and as is customary during the pendency of an acquisition, Juniper Networks will not be providing financial guidance for 2024.

About Juniper Networks

Juniper Networks believes that connectivity is not the same as experiencing a great connection. Juniper's AI-Native Networking Platform is built from the ground up to leverage AI to deliver the best and most secure user experiences from the edge to the data center and cloud. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on X (Twitter), LinkedIn, and Facebook.

Investors and others should note that Juniper Networks announces material financial and operational information to its investors using its Investor Relations website, press releases, SEC filings and public conference calls and webcasts. Juniper Networks also intends to use the X (formerly Twitter) account @JuniperNetworks and Juniper Networks’ blogs as a means of disclosing information about Juniper Networks and for complying with its disclosure obligations under Regulation FD. The social media channels that Juniper Networks intends to use as a means of disclosing information described above may be updated from time to time as listed on Juniper Networks’ Investor Relations website.

Juniper Networks, the Juniper Networks logo, Juniper, Junos, and other trademarks are registered trademarks of Juniper Networks, Inc. and/or its affiliates in the United States and other countries. Other names may be trademarks of their respective owners.

Safe Harbor; Forward-Looking Statements

Statements in this release concerning Juniper Networks’ business, economic and market outlook, our expectations regarding our liquidity and capital return program; and our overall future prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including: the completion of the proposed transaction with HPE on anticipated terms and timing or at all, including obtaining regulatory approvals and other conditions to the completion of the transaction; the fact that if the proposed transaction is completed, Juniper stockholders will forego the opportunity to realize the potential long-term value of the successful execution of Juniper’s current strategy as an independent company, which will also be affected by the ability of HPE to integrate and implement its plans, forecasts and other expectations with respect to Juniper’s business after the completion of the proposed transaction and realize additional opportunities for growth and innovation; the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement; Juniper’s ability to implement its business strategies; potential significant transaction costs associated with the proposed transaction; the risks related to HPE’s financing of the proposed transaction; potential litigation or regulatory actions relating to the proposed transaction; the risk that disruptions from the proposed transaction will harm Juniper’s business, including current plans and operations, and risks related to diverting management’s attention from Juniper’s ongoing business operations and relationships; the ability of Juniper to retain and hire key personnel; potential adverse business uncertainty resulting from the announcement, pendency or completion of the proposed transaction, including restrictions during the pendency of the proposed transaction that may impact Juniper’s ability to pursue certain business opportunities or strategic transactions; legal, regulatory, tax and economic developments affecting Juniper’s business; the unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities or current or future pandemics or epidemics, as well as Juniper’s response to any of the aforementioned factors; general economic and political conditions globally or regionally, including the impact of a U.S. federal government shutdown or sovereign debt default and adverse changes in China-Taiwan relations and any impact due to armed conflicts (such as the continuing conflict between Russia and Ukraine and the Middle East conflicts, as well as governmental sanctions imposed in response); rising interest rates; inflationary pressures; monetary policy shifts; recession risks; business and economic conditions in the networking industry; changes in overall technology spending by our customers; the network capacity and security requirements of our customers; contractual terms that may result in the deferral of revenue; the timing of orders and their fulfillment; continuing manufacturing and supply chain challenges and logistics costs, constraints, changes or disruptions; availability and pricing of key product components, such as semiconductors; delays in scheduled product availability; order cancellations; adoption of or changes to laws, regulations, standards or policies affecting our operations, products, services or the networking industry; product defects, returns or vulnerabilities; significant effects of tax legislation and judicial or administrative interpretation of new tax regulations, including the potential for corporate tax increases and changes to global tax laws; legal settlements and resolutions, including with respect to enforcing our proprietary rights; the potential impact of activities related to the execution of capital return, restructurings and product rationalization; the impact of import tariffs and changes thereto; currency exchange rates; and other factors listed in Juniper Networks’ most recent report on Form 10-Q or 10-K filed with the Securities and Exchange Commission. Note that our estimates as to the tax rate on our business are based on current tax law and regulations, including current interpretations thereof, and could be materially affected by changing interpretations as well as additional legislation and guidance. All statements made in this release are made only as of the date set forth at the beginning of this release. Juniper Networks undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this release. We have not filed our Form 10-Q for the quarter ended March 31, 2024. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file our Form 10-Q.

Use of Non-GAAP Financial Information

Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to Juniper Networks’ financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the "Discussion of Non-GAAP Financial Measures" section of this press release. The following tables and reconciliations can also be found on our Investor Relations website at http://investor.juniper.net.

Juniper Networks, Inc.
Preliminary Net Revenues by Geographic Region
(in millions)
(unaudited)
	Three Months Ended March 31,
		2024				2023
Americas	$	665.5			$	798.5
Europe, Middle East, and Africa		311.1				369.9	If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news Be Biopharma Announces New Preclinical Data for Novel B Cell Medicine for the Potential Treatment of Hypophosphatasia Kondukto announces Bring-Your-Own-Data (BYOD) Vroom Announces First Quarter 2024 Results WNS Files Fiscal 2024 Annual Report on Form 20-F Bilt Rewards and Douglas Elliman Property Management Announce New Landmark Partnership Token’s Next-Generation MFA with BioTouch Securetm Wins Two Global InfoSec Awards at RSA Conference 2024 for Innovation in Stopping Ransomware Roane State Community College Selects YuJa Verity Test Proctoring Platform to Ensure Exam Integrity Across Nine Locations in East Tennessee Global UAV Fleet Management Market Report 2024: Integration with IoT and 5G Technologies and Cloud-Based Fleet Management Solutions Changing the Industry Landscape - ResearchAndMarkets.com Last News ITALIAN PROJECT AWARDS 2023: the best IT projects of the year, awarded Now in its third edition, the initiative is targeted at the ICT professional world and honours projects based on innovative ideas and technologies, realised… I3P launches the Cybersecurity Incubation Program The I3P's initiative is promoted together with the National Cybersecurity Agency in collaboration with Leonardo and C*Sparks. iVis Technologies enables remotely-controlled corneal telesurgery It's based on Italian technologies the first successful intercontinental telesurgery intervention for keratoconus carried out remotely, connecting Bari… Bitdefender helps European cybersecurity startups Bitdefender launches Voyager Ventures to boost early-stage companies with financial support and access to its cybersecurity technology and resources Most read CrowdStrike and Google Cloud Announce Strategic Partnership to Transform… RSA Conference 2024 – CrowdStrike (Nasdaq: CRWD) today announced an expanded strategic partnership with Google Cloud to power Mandiant’s Incident Response… ITALIAN PROJECT AWARDS 2023: the best IT projects of the year, awarded Now in its third edition, the initiative is targeted at the ICT professional world and honours projects based on innovative ideas and technologies, realised… RSA to Demonstrate Identity Security Innovations Critical to Meeting NIST… RSA, the security-first identity leader, announced new product enhancements at RSA Conference 2024 to help organizations meet the National Institute of… Verimatrix XTD Enterprise Suite Triumphs at 2024 Cybersecurity Excellence… Regulatory News: Verimatrix, (Euronext Paris: VMX) (Paris:VMX), the leader in powering the modern connected world with people-centered security, today… Newsletter signup Join our mailing list to get weekly updates delivered to your inbox. Sign me up! G11 Media Networks BitCity ChannelCity ImpresaCity SecurityOpenLab GreenCity ImpresaGreen ItalianChannelAwards AgendaIct Home Newsletter Staff Copyright Contact us InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , n. 21/2007 del 11/10/2007- Registration ROC n. 15698 G11 MEDIA S.R.L. Registered office Via NUOVA VALASSINA, 4 22046 MERONE (CO) - P.IVA/C.F.03062910132 Como business register n. 03062910132 - REA n. 293834 CAPITALE SOCIALE Euro 30.000 i.v. Cookie Privacy