First quarter revenue was reported at $1.03 Billion, which is a six percent year-over-year (YOY) decline. Juniper had forecast revenues to come in between $960 million and $990 million. Net income was reported at $1.5 million or $0.03 per share.
Juniper's markets and guidance
Moving forward, Juniper provided second quarter guidance for revenues to range from $1.03 billion to $1.06 billion.
Looking at the breakdown for Juniper's first quarter, Service Provider revenue was $685 million, down eight percent YOY. During the quarter Verizon was the biggest Juniper customer, accounting for approximately 15 percent of total revenue. Juniper's Enterprise revenue was $347 million, down three percent YOY.
The first quarter was particularly noteworthy for Juniper because it marked the general availability for their PTX Converged Supercore switch. The PTX was first announced in March of 2011. With the PTX, service providers can integrate their optical and IP routing needs onto a single platform that scale to 3,800 terabits of switching capacity
Juniper is also pushing its QFabric technology vision for flatter networks that have lower latency. QFabric was first unveiled in February of 2011 and is now seeing its first production deployments. To date, Juniper has gained over 150 customers.
While QFabric is key focus for Juniper, its debut is coming at a time when the networking industry as a whole, has begun to embrace the concept of software defined networking and programmable networks. It's a concept that isn't necessarily competitive with what Juniper is doing with QFabric.
"We don't see that there's a choice between SDN or QFabric," Stefan Dyckerhoff, executive vice president and general manager of the Platform Systems Group at Juniper, said during the company's earning call. "QFabric is part of our new network strategy, and programmability is always going to be at the forefront of that strategy and SDN shares some of those goals."
Uncertain customer spending
While Juniper is fuelling its product pipeline, the unknown factor continues to be about how much the carriers will be will to spend in the coming year. Juniper CEO, Kevin Johnson noted that it's a bit too early to outline what Juniper thinks will happen for carrier capital expenditures for the full year.
"Now, as we've got these new products in market and we're engaging with customers for the architectural design wins and the trials to get these products deployed and drive revenue, that's going to be our primary focus," Johnson said.