JNPR Juniper Networks Inc

Juniper Networks Inc. on Tuesday reported an 11% decline in second quarter profit and warned challenging market conditions would continue to pressure margins.

The Sunnyvale, Calif., company said it expects operating margins to decline slightly from the 18.8% it reported last year.

For the current quarter, the network-equipment company projects 48 cents to 54 cents in adjusted profit on $1.22 billion to $1.28 billion in revenue, compared with analysts' projected 54 cents in adjusted profit and $1.24 billion in revenue, according to Thomson Reuters.

Shares, down 12% this year, fell 0.9% to $24 in after-hours trading.

Sunnyvale, Calif.-based Juniper, a rival to Cisco Systems Inc., makes routing and switching systems and other equipment used by telecommunications companies and other big network operators.

Over all, Juniper reported a profit of $140 million, or 36 cents a share, down from $158 million, or 40 cents a share, a year earlier. Excluding stock-based compensation and other items, profit was 50 cents a share, compared with 53 cents a year earlier and analysts' projections of 47 cents a share. The most recent results are based on 2.7% fewer shares outstanding.

Revenue edged down 0.1% to $1.22 billion, at the high-end of its guidance.

Gross profit margin narrowed to 61.9% from 63.9% a year earlier.

Revenue in its security product unit, which the company has been trying to stabilize, fell 27% in the latest quarter to $78.2 million.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

July 26, 2016 17:35 ET (21:35 GMT)

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