Enterprise networking vendor Juniper Networks said its revenues for the fourth quarter of 2013 rose 12 percent to $1,274 million against year-ago quarter. Net income reached $151.8 million.
Juniper’s operating margin increased to 15.3 percent from 12.2 percent in the third quarter of 2013, and increased from 11.5 percent in the fourth quarter of 2012.
For the full year of 2013, Juniper’s revenues increased 7 percent to $4,669 million. Net income reached $439.8 million.
For the fiscal year 2013, Juniper’s operating margin was 12.1 percent, compared to 7.1 percent for the prior fiscal year.
Shaygan Kheradpir, chief executive officer of Juniper Networks, said: “My initial priorities are to develop an Integrated Operating Plan that focuses on several value creating initiatives including a more focused strategy on innovation that matters, an improved cost structure, and a capital allocation strategy that results in improved returns.”
The intensifying competition among U.S. telecom companies have been a boon for network equipment makers.
In the past two weeks, Juniper’s peers Riverbed Technology and F5 Networks have forecast current-quarter revenue above Wall Street estimates.
Juniper’s strong quarterly results also comes at a time when shareholder Elliott Management has urged it to cut costs, buy back shares and consider slimming down to focus on its core business of making routers and switches for carriers such as Verizon and AT&T, Reuters reported.
The hedge fund said Juniper’s stock was undervalued, a argument similar to the one it made in the case of Riverbed, before offering to buy the company.