Juniper Networks sales improve as network demand spikes

Growth in demand for data and bandwidth caused sales of Juniper Networks solutions to spike during its second quarter

Networking supplier and SDN cheerleader Juniper Networks has seen its second quarter sales spike upwards 5% sequentially and 7% year-on-year as data volume and demand for the network capacity to support it continued to climb.

Net revenues for the three months to 30 June 2014 hit $1.23bn (£719m), helped along by growth in its routing and switching lines. Net income more than doubled to just over $220m.

Sales in Europe, the Middle East and Africa (EMEA) were well up, led by big spending carriers in central and eastern Europe, and the Middle East. However, in its domestic US market things were less rosy, and Juniper in fact missed analyst expectations for sales and earnings.

“Market fundamentals for Juniper’s routing products continue to be healthy and increasingly diversified,” said CEO Shaygan Kheradpir.

“Routing demand is being driven by consolidation of networks across business and residential services, wireline and wireless, and the need for cloud building. Bandwidth demand continues to increase and favours our products’ speed and density advantage.”

On switching, Kheradpir said datacentre transformation projects and the need to carrier grade availability, hyperscale cloud build-outs and again, proliferation of big data and video, were supporting further growth.

Many other customers were going into production with Juniper’s SDN and NFV framework, Contrail, reported Kheradpir, with two large Contrail-based public clouds, one in APAC and the other France’s CloudWatt, going live during the past three months.

Separately, Juniper has announced an agreement to sell its Junos Pulse security software portfolio to Siris Capital for around $250m as part of a bid to realign its business around cloud networks and trim its costs.

Built on its SSL VPN product and boasting capabilities around backup and data protection, network access control, and device location, Junos Pulse makes sales of between $15m and $20m a quarter.

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