Juniper Networks Reports Preliminary Third Quarter 2024 Financial Results

　　Juniper Networks (NYSE: JNPR), a leader in secure, AI-Native Networks, today reported preliminary financial results for the three months ended September 30, 2024.

　　Proposed Merger with Hewlett Packard Enterprise

　　As announced on January 9, 2024, Hewlett Packard Enterprise Company (“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.

　　Third Quarter 2024 Financial Performance

　　Net revenues were $1,331.0 million, a decrease of 5% year-over-year, and an increase of 12% sequentially.

　　GAAP operating margin was 7.1%, an increase from 6.3% in the third quarter of 2023, and an increase from 3.8% in the second quarter of 2024.

　　Non-GAAP operating margin was 15.0%, a decrease from 17.5% in the third quarter of 2023, and an increase from 10.9% in the second quarter of 2024.

　　GAAP net income was $92.6 million, an increase of 22% year-over-year, and an increase of 172% sequentially, resulting in diluted net income per share of $0.28.

　　Non-GAAP net income was $159.7 million, a decrease of 18% year-over-year, and an increase of 57% sequentially, resulting in non-GAAP diluted net income per share of $0.48.

　　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.

　　“We experienced strong demand during the September quarter, with total product orders growing nearly 60% year-over-year,” said Juniper’s CEO, Rami Rahim. “We saw particularly robust orders from our cloud customers during Q3 in support of front-end and back-end AI networking initiatives. We also experienced double-digit sequential and year-over-year order growth in our enterprise and service provider verticals.”

　　“Our Q3 financial results exceeded our expectations,” said Juniper’s CFO, Ken Miller. “We maintain strong momentum entering the December quarter and remain optimistic regarding our long-term financial prospects.”

　　Balance Sheet and Other Financial Results

　　Total cash, cash equivalents, and investments as of September 30, 2024 were $1,562.9 million, compared to $1,418.0 million as of September 30, 2023, and $1,430.3 million as of June 30, 2024.

　　Net cash flows provided by operations for the third quarter of 2024 were $192.2 million, compared to net cash flows provided by operations of $329.2 million in the third quarter of 2023, and net cash flows used in operations of $8.9 million in the second quarter of 2024.

　　Days sales outstanding in accounts receivable was 65 days in the third quarter of 2024, compared to 60 days in the third quarter of 2023, and 66 days in the second quarter of 2024.

　　Capital expenditures were $30.1 million, and depreciation and amortization expense was $38.7 million during the third quarter of 2024.

　　Capital Return

　　Our Board of Directors has declared a cash dividend of $0.22 per share to be paid on December 23, 2024 to stockholders of record as of the close of business on December 2, 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.