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Juniper Drops 7%: CEO Rahim, ‘Disappointed,’ Will ‘Realign’ Staff

The company said it will "continue to manage operating expenses prudently and increase operational efficiencies, and said it had "initiated a realignment of its workforce in Q4, as it continues to prioritize its investments in the most critical areas of its business."

"Juniper remains committed to its long-term financial principles of driving revenue growth, earnings expansion, and an optimized capital structure,” the company said.

CEO Rami Rahim said the company was “disappointed” wth the results, attributing them to "timing of switching deployments."

But he said the company "have made significant progress on executing on our cloud strategy.

We believe our deliberate and intentional strategy of focusing on cloud-oriented architectures and solutions has resulted in a strong footprint and a compelling product pipeline. We are excited about the opportunity we have in front of us.

CFO Ken Miller said Juniper continued to "manage costs effectively” despite the lower revenue.

Revenue in the three months ended in September declined by 2%, year over year, to $1.258 billion, yielding EPS of 55 cents. That is in line with a forecast it offered on October 11th, when it warned a shortfall in sales for cloud computing networks mean results would miss its prior forecast.

That cut in outlook was debated by the Street the next day, as to whether it was specific to Juniper or an industry-wide issue.

In its outlook for this quarter, the company projected revenue of $1.2 billion to $1.26 billion, below consensus for $1.33 billion. EPS is seen in a range of $49 cents to 55 cents, compared to the average estimate for 60 cents.