DOW JONES NEWSWIRES
Juniper Networks Inc.'s (JNPR) third-quarter earnings fell 44% as the networking company recorded a double-digit revenue decline, but the firm indicated clouds in the market are clearing.
"Juniper is driving execution and gaining momentum at a time when visibility in key areas of our business is beginning to improve," said Chief Executive Kevin Johnson.
Shares were recently down 2.4% at $27.55 in after-hours trading. The stock had risen nearly 25% since early September.
Information-technology companies have seen their profit under pressure in recent quarters as businesses have cut back during the economic downturn. Juniper's equipment for computer networking and Internet data transmission faces stiff competition from industry giant Cisco Systems Inc. (CSCO).
Earnings fell to $83.8 million, or 16 cents a share, from $148.5 million, or 27 cents a share, a year earlier. Excluding stock-based compensation and write-downs, earnings fell to 23 cents from 32 cents.
Revenue dropped 13% to $823.9 million, with product sales down 17% and service revenue up 5.5%.
Analysts polled by Thomson Reuters expected earnings of 21 cents with revenue of $800 million.
Gross margin narrowed to 65.2% from 67.5%.
"Juniper delivered solid results that featured sequential growth in our service provider and enterprise markets, as well as improved operating margins and good cash from operations," said Chief Financial Officer Robyn Denholm said, adding the company had cut adjusted operating expenses by 4% from a year earlier.
-By Jennifer Hodson and Jay Miller, Dow Jones Newswires; 212-416-2269; jennifer.hodson@dowjones.com