- Revenue: $912.6 million, up 19% year-over-year
- Operating Margin: 17.6% GAAP; 23.2% non-GAAP
- GAAP Net Income Per Share: $0.30 diluted (reflects a non-recurring income tax benefit of $54.1 million, or $0.10 per diluted share)
- Non-GAAP Net Income Per Share: $0.27 diluted, up 59% year-over-year
Net revenues for the first quarter of 2010 increased 19% on a year-over-year basis to $912.6 million. The Company posted GAAP net income of $163.1 million, or $0.30 per diluted share, and non-GAAP net income of $146.4 million, or $0.27 per diluted share for the first quarter of 2010. GAAP net income includes a non-recurring income tax benefit of $54.1 million, or $0.10 per diluted share, related to a change in the tax treatment of stock-based compensation in research and development cost sharing arrangements for certain U.S. multinational companies due to a federal appellate court ruling in the first quarter of 2010. Non-GAAP net income per share increased 59% compared to the first quarter of 2009. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Revenues by Market table below.
In October 2009, the Financial Accounting Standards Board issued new accounting guidance related to revenue recognition. Juniper Networks adopted this accounting guidance early on a prospective basis for transactions originating or materially modified after December 31, 2009. As a result, net revenues for the first quarter of 2010 were approximately $25 million higher than the net revenues that would have been recorded under the previous accounting rules. The increase was attributable to transactions that were booked and shipped in the first quarter.
"Juniper executed very well in the first quarter and has set a solid foundation for growth in 2010," stated Kevin Johnson, Juniper's Chief Executive Officer. "We are building momentum by investing in and delivering innovative solutions in key areas like mobility and video that transform the economics and experiences of networking for our customers. Juniper is also executing well operationally as we evolve and scale our operation in support of our growth agenda."
Juniper's operating margin for the first quarter of 2010 increased to 17.6% on a GAAP basis from 10.6% in the same quarter a year ago. Non-GAAP operating margin for the first quarter of 2010 increased to 23.2% from 16.4% in the same quarter a year ago.
For the first quarter of 2010, Juniper generated cash from operations of approximately $257.9 million before litigation settlement payments of $169.3 million, which were incurred as charges against the Company's fourth quarter of 2009 results. As a result of the litigation settlement payments, net cash from operations for the first quarter of 2010 was $88.5 million. Net cash from operations for the same quarter in 2009 was $163.9 million.
Capital expenditures as well as depreciation and amortization expense during the first quarter of 2010 were $37.8 million and $35.3 million, respectively.
"I'm pleased with our first quarter financial results, which reflect good year-over-year growth in both revenue and earnings per share," stated Robyn Denholm, Juniper's Chief Financial Officer. "During the quarter, we delivered strong operating margins and cash flow from ongoing operations. We remain focused on operational excellence and believe we are well positioned as market conditions strengthen."
Juniper Networks will host a conference call web cast today, April 20, 2010 at 1:45 p.m. (Pacific Time), to be broadcast live over the Internet at: http://www.juniper.net/company/investor/conferencecall.html.