Juniper Networks Reports Preliminary Second 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 June 30, 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.

　　Second Quarter 2024 Financial Performance

　　Net revenues were $1,189.6 million, a decrease of 17% year-over-year, and an increase of 4% sequentially.

　　GAAP operating margin was 3.8%, a decrease from 9.9% in the second quarter of 2023, and an increase from (1.2)% in the first quarter of 2024.

　　Non-GAAP operating margin was 10.9%, a decrease from 16.9% in the second quarter of 2023, and an increase from 10.6% in the first quarter of 2024.

　　GAAP net income was $34.1 million, an increase of 40% year-over-year, resulting in diluted net income per share of $0.10. GAAP net income increased to a profit compared to a loss in the first quarter of 2024.

　　Non-GAAP net income was $101.6 million, a decrease of 46% year-over-year, and an increase of 5% sequentially, resulting in non-GAAP diluted net income per share of $0.31.

　　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 better than expected demand during the June quarter, with orders growing double-digits sequentially and year-over-year,” said Juniper’s CEO, Rami Rahim. “We saw particularly robust orders from our cloud customers, many of which have digested prior purchases and are investing to support AI initiatives. We also experienced better than expected enterprise demand due to continued momentum in our Mist-led Campus & Branch business and strong demand for our Enterprise data center offerings.”

　　“Our Q2 financial results were largely in-line with our expectations at the beginning of the quarter,” said Juniper’s CFO, Ken Miller. “Our teams continue to execute well and we remain optimistic regarding our long-term financial prospects.”

　　Balance Sheet and Other Financial Results

　　Total cash, cash equivalents, and investments as of June 30, 2024 were $1,430.3 million, compared to $1,296.4 million as of June 30, 2023, and $1,534.9 million as of March 31, 2024.

　　Net cash flows used by operations for the second quarter of 2024 were $8.9 million, compared to net cash flows provided by operations of $343.0 million in the second quarter of 2023, and $325.0 million in the first quarter of 2024.

　　Days sales outstanding in accounts receivable was 66 days in the second quarter of 2024, compared to 57 days in the second quarter of 2023, and 64 days in the first quarter of 2024.

　　Capital expenditures were $23.4 million, and depreciation and amortization expense was $39.4 million during the second quarter of 2024.

　　Capital Return

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