Juniper Networks reported significant drop in its revenue during the first quarter of 2019 as it could not enhance its sales to telecom service providers and Cloud providers.
Juniper Networks’ first quarter revenue fell 7.5 percent to $1,002 million with gross margin of 59.3 percent.
Juniper Networks CEO Rami Rahim said: “The investments we are making in our go-to-market organization, new products we are bringing to market and the acquisition of Mist Systems should position us to deliver a return to growth later this year.”
Revenue details
Juniper Networks generated revenue of $223.1 million (–17.6 percent) from Cloud providers, $435.6 million (–9.3 percent) from service providers and $343 million (+3.4 percent) during the first quarter.
Juniper Networks generated revenue of $543.6 million from Americas, $286.2 million from EMEA and $171.9 million from Asia Pacific including China and India. Juniper Networks generated low revenue in all geographies.
Juniper Networks generated revenue of $374.7 million from routing, $176.4 million from switching and $67.6 million from security. Juniper Networks reported lower revenue from these three business divisions.
The drop of 17.6 percent business from Cloud providers was primarily due to Switching and Routing, partially offset by growth in Service.
The increase in enterprise business was driven by strength in Routing and to a lesser extent, Service and Security, partially offset by Switching.
Juniper Networks said its revenue from enterprise fell 20 percent quarter on quarter, more than normal seasonality impacted by transitions in its go-to-market structure.
Juniper Networks Service Provider revenue dropped 16 percent sequentially, due to weakness across all geographies.
Routing revenue fell 8 percent year-over-year and 16 percent sequentially to $375 million. Its routing business with service provider was impacted.
Switching revenue of Juniper Networks dipped 23 percent year-over-year and sequentially to $176 million. Its supply of switching to Cloud segment was impacted.
Security decreased 7 percent year-over-year and 35 percent sequentially to $68 million. Its security business with Cloud providers was impacted.
Juniper Networks’s top 10 customers include three from Cloud, six from Service Provider, and one from Enterprise.
Juniper Networks has slashed its jobs to 9,068 in the first quarter, achieving a decrease of 295 employees year-over-year and 215 sequentially. The year-over-year and sequential decreases were primarily related to restructuring in Q1 2019.
