SUNNYVALE, CA–(Marketwired – Apr 22, 2014) – Juniper Networks (NASDAQ:JNPR, news, filings)
Q1 2014 Financial Highlights:
- Revenue: $1,170 million, down 8% from Q4’13 and up 10% from Q1’13
- Operating Margin: (0.5)% GAAP, includes $122 million of restructuring and other charges; 17.2% non-GAAP, up 1.5 pts from Q1’13
- GAAP Net Income Per Share: $0.22 diluted, includes a $0.33 gain from the sale of minority equity investments and a $0.25 impact from restructuring and other charges
- Non-GAAP Net Income Per Share: $0.29 diluted, down from $0.43 diluted in Q4’13 and up from $0.24 diluted in Q1’13
Juniper Networks (NYSE: JNPR), the industry leader in network innovation, today reported preliminary financial results for the three months ended March 31, 2014 and provided its outlook for the three months ending June 30, 2014.
Net revenues for the first quarter of 2014 increased 10% year-over-year and decreased 8% sequentially to $1,170 million.
Juniper’s operating margin for the first quarter of 2014 decreased to (0.5)% on a GAAP basis including $122 million of restructuring and other charges, from 15.3% in the fourth quarter of 2013, and decreased from 8.2% in the first quarter of 2013. Non-GAAP operating margin for the first quarter of 2014 decreased to 17.2% from 21.9% in the fourth quarter of 2013, and increased from 15.7% in the first quarter of 2013.
Juniper posted GAAP net income of $110.6 million, or $0.22 per diluted share for the first quarter of 2014. The GAAP diluted income per share includes a $0.33 gain on the sale of minority equity investments offset by a $0.25 impact from restructuring and other charges. Non-GAAP net income was $142.6 million, or $0.29 per diluted share for the first quarter of 2014. Non-GAAP net income per diluted share decreased 33% compared to the fourth quarter of 2013, and increased 21% compared to the first quarter of 2013.
The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Preliminary Net Revenue by Market table below.
“Juniper delivered solid first quarter results with strong year-over-year revenue growth. We are seeing continued demand from our customers reflecting a significant opportunity to capture share in meaningful, high-growth Cloud-Builder and High IQ networking across both service provider and enterprise markets,” said Shaygan Kheradpir, chief executive officer of Juniper Networks. “I am very pleased with the disciplined approach we have taken with our Integrated Operating Plan. We have sharpened our focus on Cloud-Builders and High IQ networks with the ensemble of our products in routing, switching, security, network management, control and analytics; we have implemented an optimized One-Juniper structure; and we introduced a robust capital allocation program. While there is still work to do, I am confident that we have the right strategy in place to drive profitable growth and deliver significant value to shareholders.”
“I am pleased with our first quarter results, which reflect our seventh consecutive quarter of year-over-year revenue growth and our fifth consecutive quarter of earnings growth,” said Robyn Denholm, chief financial and operations officer of Juniper Networks. “During the quarter we generated strong operating cash flows, drove operating margin expansion — ahead of our Integrated Operating Plan cost reduction activities — and initiated a $1.2 billion accelerated share repurchase program. Our revenues continue to diversify and we are well-positioned for continued growth, driven by the solid underlying performance across our business.”
Other Financial Highlights
Total cash, cash equivalents, and investments as of March 31, 2014 were $3,479 million, compared to $4,098 million as of December 31, 2013, and $3,672 million as of March 31, 2013.
Juniper’s net cash flow from operations for the first quarter of 2014 was $126 million, compared to $390 million in the fourth quarter of 2013, and net cash outflow of ($9) million in the first quarter of 2013.
Days sales outstanding in accounts receivable or “DSO” was 46 days in the first quarter of 2014, compared to 41 days in the prior quarter, and 45 days in the first quarter of 2013.
During the first quarter of 2014, Juniper Networks initiated a $1.2 billion accelerated share repurchase program, of which $900 million of shares were initially delivered.
Capital expenditures were $57.3 million and depreciation and amortization of intangible assets expense was $46.1 million during the first quarter of 2014.
Outlook
Juniper’s outlook for the second quarter ending June 30, 2014 reflects its expectation that overall demand will remain healthy. The Company is focused on continued innovation and executing on its Integrated Operating Plan.
Juniper Networks estimates:
- Revenues will be in the range of $1,200 million to $1,230 million.
- Non-GAAP gross margin will be approximately 64.0%, plus or minus 0.5%.
- Non-GAAP operating expenses will be $520 million, plus or minus $5 million.
- Non-GAAP operating margin will be roughly 21.0%, plus or minus 0.5% at the midpoint of revenue guidance.
- Non-GAAP net income per share will range between $0.36 and $0.39 on a diluted basis. This assumes a share count of 480 million and a non-GAAP tax rate flat to the first quarter.
All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expense, acquisition-related charges, restructuring and related costs, impairment charges, litigation settlements and resolutions, non-routine stockholder activities, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets and income tax effect of non-GAAP exclusions. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
Change in Reporting Structure
In the first quarter of 2014, Juniper announced an Integrated Operating Plan or “IOP” to refocus the Company’s strategy, optimize its structure, and improve operational efficiencies. In connection with the IOP, Juniper realigned its R&D organizations previously reported under Platform Systems Division or “PSD” and Software Solutions Division or “SSD”, into an optimized One-Juniper structure now called Juniper Development and Innovation or “JDI.” As a result, Juniper is no longer reporting PSD or SSD as reportable segments. Juniper will continue to provide revenue details by product, geographic region and by market, and the historical amounts for these categorizations have not changed.
Conference Call Webcast
Juniper Networks will host a conference call webcast today, April 22, 2014, at 2:00 pm (Pacific Daylight Time), to be broadcast live over the Internet at http://investor.juniper.net/investor-relations/default.aspx.
To participate via telephone in the US, the toll free dial-in number is 1-877-407-8033. Outside the US, dial +1-201-689-8033. Please call 10 minutes prior to the scheduled conference call time. The webcast replay will be archived on the Juniper Networks website.
About Juniper Networks
Juniper Networks (NYSE: JNPR) delivers innovation across routing, switching and security. From the network core down to consumer devices, Juniper Networks’ innovations in software, silicon and systems transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on Twitter and Facebook.
Juniper Networks and Junos, are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks Logo, the Junos logo, and QFabric are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.
Safe Harbor
Statements in this release concerning Juniper Networks’ business outlook, economic and market outlook, future financial and operating results, and overall future prospects are forward-looking statements 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 certain factors, including: general economic and political conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending and spending by communication service providers and major customers; the network capacity requirements of communication service providers; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; manufacturing and supply chain constraints; ability to establish and maintain relationships with distributors, resellers and other partners; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation settlements and resolutions; the potential impact of activities related to the execution of the Juniper Networks Integrated Operating Plan; and other factors listed in Juniper Networks’ most recent report on Form 10-K filed with the Securities and Exchange Commission. All statements made in this press 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 in this release in the event facts or circumstances subsequently change after the date of this press release.
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 the company’s 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 below. The following tables and reconciliations can also be found on our Investor Relations website at http://investor.juniper.net/investor-relations/default.aspx.
| Juniper Networks, Inc. | ||||||||||
| Preliminary Condensed Consolidated Statements of Operations | ||||||||||
| (in millions, except per share amounts) | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Net revenues: | ||||||||||
| Product | $ | 876.0 | $ | 781.8 | ||||||
| Service | 294.1 | 277.4 | ||||||||
| Total net revenues | 1,170.1 | 1,059.2 | ||||||||
| Cost of revenues: | ||||||||||
| Product | 326.6 | 278.2 | ||||||||
| Service | 123.4 | 110.2 | ||||||||
| Total cost of revenues | 450.0 | 388.4 | ||||||||
| Gross margin | 720.1 | 670.8 | ||||||||
| Operating expenses: | ||||||||||
| Research and development | 264.0 | 262.2 | ||||||||
| Sales and marketing | 273.4 | 256.1 | ||||||||
| General and administrative | 74.9 | 58.5 | ||||||||
| Restructuring and other charges | 114.0 | 7.0 | ||||||||
| Total operating expenses | 726.3 | 583.8 | ||||||||
| Operating (loss) income | (6.2 | ) | 87.0 | |||||||
| Other income (expense), net | 154.2 | (10.1 | ) | |||||||
| Income before income taxes | 148.0 | 76.9 | ||||||||
| Income tax provision (benefit) | 37.4 | (14.1 | ) | |||||||
| Net income | $ | 110.6 | $ | 91.0 | ||||||
| Net income per share: | ||||||||||
| Basic | $ | 0.23 | $ | 0.18 | ||||||
| Diluted | $ | 0.22 | $ | 0.18 | ||||||
| Shares used in computing net income per share: | ||||||||||
| Basic | 486.2 | 504.7 | ||||||||
| Diluted | 496.5 | 512.7 | ||||||||
| Juniper Networks, Inc. | ||||||||
| Preliminary Net Revenues by Product and Service | ||||||||
| (in millions) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Routing | $ | 549.8 | $ | 513.6 | ||||
| Switching | 192.0 | 131.5 | ||||||
| Security | 134.2 | 136.7 | ||||||
| Total product | 876.0 | 781.8 | ||||||
| Total service | 294.1 | 277.4 | ||||||
| Total | $ | 1,170.1 | $ | 1,059.2 | ||||
| Juniper Networks, Inc. | |||||||
| Preliminary Net Revenues by Geographic Region | |||||||
| (in millions) | |||||||
| (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2014 | 2013 | ||||||
| Americas | $ | 681.5 | $ | 592.1 | |||
| Europe, Middle East, and Africa | 295.7 | 290.6 | |||||
| Asia Pacific | 192.9 | 176.5 | |||||
| Total | $ | 1,170.1 | $ | 1,059.2 | |||
| Juniper Networks, Inc. | |||||||
| Preliminary Net Revenues by Market | |||||||
| (in millions) | |||||||
| (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2014 | 2013 | ||||||
| Service Provider | $ | 782.7 | $ | 712.9 | |||
| Enterprise | 387.4 | 346.3 | |||||
| Total | $ | 1,170.1 | $ | 1,059.2 | |||
| Juniper Networks, Inc. | |||||||||||||||
| Reconciliation between GAAP and non-GAAP Financial Measures | |||||||||||||||
| (in millions, except percentages and per share amounts) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2014 | December 31, 2013 |
March 31, 2013 | |||||||||||||
| GAAP operating (loss) income | $ | (6.2 | ) | $ | 195.4 | $ | 87.0 | ||||||||
| GAAP operating margin | (0.5 | )% | 15.3 | % | 8.2 | % | |||||||||
| Share-based compensation expense | C | 60.8 | 63.9 | 49.9 | |||||||||||
| Share-based payroll tax expense | C | 7.0 | 0.6 | 3.5 | |||||||||||
| Amortization of purchased intangible assets | A | 9.5 | 9.1 | 7.5 | |||||||||||
| Restructuring and other charges | B | 122.4 | 18.9 | 7.7 | |||||||||||
| Acquisition-related charges | A | 0.6 | 0.7 | 0.1 | |||||||||||
| Litigation charge | B | — | (10.3 | ) | 10.3 | ||||||||||
| Non-routine stockholder activities | B | 7.3 | — | — | |||||||||||
| Non-GAAP operating income | $ | 201.4 | $ | 278.3 | $ | 166.0 | |||||||||
| Non-GAAP operating margin | 17.2 | % | 21.9 | % | 15.7 | % | |||||||||
| GAAP net income | $ | 110.6 | $ | 151.8 | $ | 91.0 | |||||||||
| Share-based compensation expense | C | 60.8 | 63.9 | 49.9 | |||||||||||
| Share-based payroll tax expense | C | 7.0 | 0.6 | 3.5 | |||||||||||
| Amortization of purchased intangible assets | A | 9.5 | 9.1 | 7.5 | |||||||||||
| Restructuring and other charges | B | 122.4 | 18.9 | 7.7 | |||||||||||
| Acquisition-related charges | A | 0.6 | 0.7 | 0.1 | |||||||||||
| Litigation charge | B | — | (10.3 | ) | 10.3 | ||||||||||
| Non-routine stockholder activities | B | 7.3 | — | — | |||||||||||
| Gain on equity investments | B | (164.0 | ) | (2.4 | ) | (1.6 | ) | ||||||||
| Income tax effect of non-GAAP exclusions | B | (11.6 | ) | (16.5 | ) | (44.6 | ) | ||||||||
| Non-GAAP net income | $ | 142.6 | $ | 215.8 | $ | 123.8 | |||||||||
| GAAP diluted net income per share | $ | 0.22 | $ | 0.30 | $ | 0.18 | |||||||||
| Non-GAAP diluted net income per share | D | $ | 0.29 | $ | 0.43 | $ | 0.24 | ||||||||
| Shares used in computing diluted net income per share | 496.5 | 505.6 | 512.7 | ||||||||||||
Discussion of Non-GAAP Financial Measures
This press release, including the tables above and below, includes the following non-GAAP financial measures derived from our Preliminary Condensed Consolidated Statements of Operations: product gross margin, product gross margin as a percentage of product revenue; service gross margin; service gross margin as a percentage of service revenue; gross margin; gross margin as a percentage of revenue; research and development expense; sales and marketing expense; general and administrative expense; operating expense; operating income; operating margin; provision for income taxes; income tax rate; net income; and net income per share. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles or GAAP. In addition, these measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The non-GAAP financial measures used in the table above should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.
We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures presented above to be helpful in assessing the performance of the continuing operation of our business. By continuing operations we mean the ongoing revenue and expenses of the business excluding certain items that render comparisons with prior periods or analysis of on-going operating trends more difficult, such as expenses not directly related to the actual cash costs of development, sale, delivery or support of our products and services, or expenses that are reflected in periods unrelated to when the actual amounts were incurred or paid. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. In addition, we have historically reported non-GAAP results to the investment community and believe that continuing to provide non-GAAP measures provides investors with a tool for comparing results over time. In assessing the overall health of our business for the periods covered by the table above and, in particular, in evaluating the financial line items presented in the table above, we have excluded items in the following three general categories, each of which are described below: Acquisition-Related Charges, Other Items, and Share-Based Compensation Related Items. We also provide additional detail below regarding the shares used to calculate our non-GAAP net income per share. Notes identified for line items in the table above correspond to the appropriate note description below. Additionally, with respect to future financial guidance provided on a non-GAAP basis, we have excluded estimates for amortization of intangible assets, share based compensation expenses, acquisition related charges, restructuring charges, litigation settlement and resolution charges, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and income tax effect of non-GAAP exclusions.
Note A: Acquisition-Related Charges. We exclude certain expense items resulting from acquisitions including the following, when applicable: (i) amortization of purchased intangible assets associated with our acquisitions; (ii) compensation related to acquisitions; and (iii) acquisition-related charges. The amortization of purchased intangible assets associated with our acquisitions results in our recording expenses in our GAAP financial statements that were already expensed by the acquired company before the acquisition and for which we have not expended cash. Moreover, had we internally developed the products acquired, the amortization of intangible assets, and the expenses of uncompleted research and development would have been expensed in prior periods. Accordingly, we analyze the performance of our operations in each period without regard to such expenses. In addition, acquisitions result in non-continuing operating expenses, which would not otherwise have been incurred by us in the normal course of our business operations. For example, we have incurred deferred compensation charges related to assumed options and transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees. We believe that providing non-GAAP information for acquisition-related expense items in addition to the corresponding GAAP information allows the users of our financial statements to better review and understand the historic and current results of our continuing operations, and also facilitates comparisons to less acquisitive peer companies.
Note B: Other Items. We exclude certain other items that are the result of either unique or unplanned events including the following, when applicable: (i) restructuring and related costs; (ii) impairment charges; (iii) gain or loss on legal settlement, net of related transaction costs; (iv) retroactive impacts of certain tax settlements; (v) significant effects of tax legislation and judicial or administrative interpretation of tax regulations; (vi) gain or loss on equity investments; (vii) the income tax effect on our financial statements of excluding items related to our non-GAAP financial measures; and (viii) non-routine stockholder activities. It is difficult to estimate the amount or timing of these items in advance. Restructuring and impairment charges result from events, which arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Although these events are reflected in our GAAP financials, these unique transactions may limit the comparability of our on-going operations with prior and future periods. In the case of legal settlements, these gains or losses are recorded in the period in which the matter is concluded or resolved even though the subject matter of the underlying dispute may relate to multiple or different periods. As such, we believe that these expenses do not accurately reflect the underlying performance of our continuing operations for the period in which they are incurred. Similarly, the retroactive impacts of certain tax settlements and significant effects of retroactive tax legislation are unique events that occur in periods that are generally unrelated to the level of business activity to which such settlement or legislation applies. We believe this limits comparability with prior periods and that these expenses do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. Whether we realize gains or losses on equity investments is based primarily on the performance and market value of those independent companies. Accordingly, we believe that these gains and losses do not reflect the underlying performance of our continuing operations. We also believe providing financial information with and without the income tax effect of excluding items related to our non-GAAP financial measures provide our management and users of the financial statements with better clarity regarding the on-going performance and future liquidity of our business. Because of these factors, we assess our operating performance both with these amounts included and excluded, and by providing this information, we believe the users of our financial statements are better able to understand the financial results of what we consider our continuing operations.
Note C: Share-Based Compensation Related Items. We provide non-GAAP information relative to our expense for share-based compensation and related payroll tax. We began to include share-based compensation expense in our GAAP financial measures in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation (“FASB ASC Topic 718”), in January 2006. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, which affect the calculations of share-based compensation, we believe that the exclusion of share-based compensation allows for more accurate comparisons of our operating results to our peer companies. Further, we believe that excluding share-based compensation expense allows for a more accurate comparison of our financial results to previous periods during which our equity-based awards were not required to be reflected in our income statement. Share-based compensation is very different from other forms of compensation. A cash salary or bonus has a fixed and unvarying cash cost. For example, the expense associated with a $10,000 bonus is equal to exactly $10,000 in cash regardless of when it is awarded and who it is awarded by. In contrast, the expense associated with an award of an option for 1,000 shares of share is unrelated to the amount of compensation ultimately received by the employee; and the cost to the company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time and that does not reflect any cash expenditure by the company because no cash is expended. Furthermore, the expense associated with granting an employee an option is spread over multiple years unlike other compensation expenses which are more proximate to the time of award or payment. For example, we may be recognizing expense in a year where the stock option is significantly underwater and is not going to be exercised or generate any compensation for the employee. The expense associated with an award of an option for 1,000 shares of stock by us in one quarter may have a very different expense than an award of an identical number of shares in a different quarter. Finally, the expense recognized by us for such an option may be very different than the expense to other companies for awarding a comparable option, which makes it difficult to assess our operating performance relative to our competitors. Similar to share-based compensation, payroll tax on stock option exercises is dependent on our stock price and the timing and exercise by employees of our share-based compensation, over which our management has little control, and as such does not correlate to the operation of our business. Because of these unique characteristics of share-based compensation and the related payroll tax, management excludes these expenses when analyzing the organization’s business performance. We also believe that presentation of such non-GAAP information is important to enable readers of our financial statements to compare current period results with periods prior to the adoption of FASB ASC Topic 718.
Note D: Non-GAAP Net Income Per Share Items. We provide diluted non-GAAP net income per share. The diluted non-GAAP income per share includes additional dilution from potential issuance of common stock, except when such issuances would be anti-dilutive.
| Juniper Networks, Inc. | ||||||||
| Preliminary Condensed Consolidated Balance Sheets | ||||||||
| (in millions) | ||||||||
| (unaudited) | ||||||||
| March 31, 2014 |
December 31, 2013 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,579.4 | $ | 2,284.0 | ||||
| Short-term investments | 378.1 | 561.9 | ||||||
| Accounts receivable, net of allowances | 597.9 | 578.3 | ||||||
| Deferred tax assets, net | 140.4 | 79.8 | ||||||
| Prepaid expenses and other current assets | 184.0 | 199.9 | ||||||
| Total current assets | 3,879.8 | 3,703.9 | ||||||
| Property and equipment, net | 905.7 | 882.3 | ||||||
| Long-term investments | 521.2 | 1,251.9 | ||||||
| Restricted cash and investments | 71.6 | 89.5 | ||||||
| Purchased intangible assets, net | 115.1 | 106.9 | ||||||
| Goodwill | 4,071.3 | 4,057.7 | ||||||
| Other long-term assets | 158.9 | 233.8 | ||||||
| Total assets | $ | 9,723.6 | $ | 10,326.0 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 222.2 | $ | 200.4 | ||||
| Accrued compensation | 180.6 | 273.9 | ||||||
| Deferred revenue | 772.5 | 705.8 | ||||||
| Other accrued liabilities | 271.0 | 261.3 | ||||||
| Total current liabilities | 1,446.3 | 1,441.4 | ||||||
| Long-term debt | 1,348.9 | 999.3 | ||||||
| Long-term deferred revenue | 381.7 | 363.5 | ||||||
| Long-term income taxes payable | 121.7 | 114.4 | ||||||
| Other long-term liabilities | 115.5 | 105.2 | ||||||
| Total liabilities | 3,414.1 | 3,023.8 | ||||||
| Total stockholders’ equity | 6,309.5 | 7,302.2 | ||||||
| Total liabilities and stockholders’ equity | $ | 9,723.6 | $ | 10,326.0 | ||||
| Juniper Networks, Inc. | |||||||||||
| Preliminary Condensed Consolidated Statements of Cash Flows | |||||||||||
| (in millions) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2014 | 2013 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 110.6 | $ | 91.0 | |||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
| Share-based compensation | 60.8 | 49.9 | |||||||||
| Depreciation, amortization, and accretion | 48.1 | 51.8 | |||||||||
| Restructuring and other charges | 122.4 | 7.7 | |||||||||
| Deferred income taxes | (44.5 | ) | 15.7 | ||||||||
| Gain on investments, net | (166.2 | ) | (2.3 | ) | |||||||
| Excess tax benefits from share-based compensation | (6.7 | ) | (1.1 | ) | |||||||
| Loss on disposal of fixed assets | 0.8 | 0.1 | |||||||||
| Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||
| Accounts receivable, net | (15.7 | ) | (94.3 | ) | |||||||
| Prepaid expenses and other assets | 35.5 | (53.6 | ) | ||||||||
| Accounts payable | 19.2 | 9.1 | |||||||||
| Accrued compensation | (92.0 | ) | (75.2 | ) | |||||||
| Income taxes payable | 21.2 | (38.4 | ) | ||||||||
| Other accrued liabilities | (50.3 | ) | (26.5 | ) | |||||||
| Deferred revenue | 82.8 | 57.2 | |||||||||
| Net cash provided by (used in) operating activities | 126.0 | (8.9 | ) | ||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (57.3 | ) | (71.5 | ) | |||||||
| Purchases of available-for-sale investments | (327.1 | ) | (582.2 | ) | |||||||
| Proceeds from sales of available-for-sale investments | 1,221.4 | 331.8 | |||||||||
| Proceeds from maturities of available-for-sale investments | 79.3 | 54.0 | |||||||||
| Purchases of trading investments | (1.8 | ) | (1.5 | ) | |||||||
| Proceeds from sales of privately-held investments | 2.5 | 1.6 | |||||||||
| Purchases of privately-held investments | (1.7 | ) | (7.3 | ) | |||||||
| Payments for business acquisitions, net of cash and cash equivalents acquired | (27.1 | ) | (10.0 | ) | |||||||
| Changes in restricted cash | 25.0 | — | |||||||||
| Net cash provided by (used in) investing activities | 913.2 | (285.1 | ) | ||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of common stock | 101.2 | 65.0 | |||||||||
| Purchases and retirement of common stock | (905.8 | ) | (132.5 | ) | |||||||
| Purchase of equity forward contract | (300.0 | ) | — | ||||||||
| Issuance of long-term debt, net | 346.5 | — | |||||||||
| Payment for capital lease obligation | (0.4 | ) | (1.4 | ) | |||||||
| Customer financing arrangements | 8.0 | (2.3 | ) | ||||||||
| Excess tax benefits from share-based compensation | 6.7 | 1.1 | |||||||||
| Net cash used in financing activities | (743.8 | ) | (70.1 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents | 295.4 | (364.1 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 2,284.0 | 2,407.8 | |||||||||
| Cash and cash equivalents at end of period | $ | 2,579.4 | $ | 2,043.7 | |||||||
| Juniper Networks, Inc. | |||||||
| Cash, Cash Equivalents, and Investments | |||||||
| (in millions) | |||||||
| (unaudited) | |||||||
| March 31, 2014 |
December 31, 2013 |
||||||
| Cash and cash equivalents | $ | 2,579.4 | $ | 2,284.0 | |||
| Short-term investments | 378.1 | 561.9 | |||||
| Long-term investments | 521.2 | 1,251.9 | |||||
| Total | $ | 3,478.7 | $ | 4,097.8 | |||
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