Advertisement
Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the discussion below. The following tables and reconciliations can also be found on the Investor Relations website at www.juniper.net.
Juniper Networks, Inc. Preliminary Condensed Consolidated Statements of Operations (in millions, except per share amounts) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- 2012 2011 2012 2011 ---------- --------- --------- ---------Net revenues: Product $ 847.3 $ 847.5 $ 3,262.1 $ 3,478.3 Service 293.5 273.3 1,103.3 970.4 ---------- --------- --------- --------- Total net revenues 1,140.8 1,120.8 4,365.4 4,448.7Cost of revenues: Product 296.1 310.6 1,204.0 1,155.3 Service 111.7 111.3 452.6 424.8 ---------- --------- --------- --------- Total cost of revenues 407.8 421.9 1,656.6 1,580.1 ---------- --------- --------- ---------Gross margin 733.0 698.9 2,708.8 2,868.6Operating expenses: Research and development 275.1 250.5 1,101.6 1,026.8 Sales and marketing 263.8 253.2 1,042.0 1,001.1 General and administrative 50.7 45.5 203.6 179.1 Amortization of purchased intangible assets 1.2 1.2 4.7 5.4 Restructuring and other charges 10.6 15.0 46.8 30.6 Acquisition-related charges 0.7 0.3 2.0 7.1 ---------- --------- --------- --------- Total operating expenses 602.1 565.7 2,400.7 2,250.1 ---------- --------- --------- ---------Operating income 130.9 133.2 308.1 618.5Other income (expense), net 9.0 (10.7) (16.6) (46.8) ---------- --------- --------- ---------Income before income taxes and noncontrolling interest 139.9 122.5 291.5 571.7Income tax provision 44.2 26.3 105.0 146.7 ---------- --------- --------- ---------Consolidated net income 95.7 96.2 186.5 425.0Adjust for net loss attributable to noncontrolling interest -- -- -- 0.1 ---------- --------- --------- ---------Net income attributable to Juniper Networks $ 95.7 $ 96.2 $ 186.5 $ 425.1 ========== ========= ========= =========Net income per share attributable to Juniper Networks common stockholders: Basic $ 0.19 $ 0.18 $ 0.36 $ 0.80 ========== ========= ========= ========= Diluted $ 0.19 $ 0.18 $ 0.35 $ 0.79 ========== ========= ========= =========Shares used in computing net income per share: Basic 507.6 526.1 520.9 529.8 ========== ========= ========= ========= Diluted 513.1 533.3 526.2 541.4 ========== ========= ========= ========= Juniper Networks, Inc. Preliminary Net Revenues by Reportable Segment (in millions) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Platform Systems Division: PSD Products: Routing $ 513.7 $ 478.5 $ 1,946.8 $ 2,166.0 Switching 145.8 155.9 554.8 495.8 Security/Other 46.6 54.6 182.5 213.2 ---------- ---------- ---------- ---------- Total PSD Products $ 706.1 $ 689.0 $ 2,684.1 $ 2,875.0 PSD Services 223.7 204.1 834.3 713.3 ---------- ---------- ---------- ---------- Total Platform Systems Division Revenue $ 929.8 $ 893.1 $ 3,518.4 $ 3,588.3 ========== ========== ========== ==========Software Solutions Division: SSD Products: Routing $ 17.5 $ 27.8 $ 84.7 $ 112.7 Security/Other 123.7 130.7 493.3 490.6 ---------- ---------- ---------- ---------- Total SSD Products $ 141.2 $ 158.5 $ 578.0 $ 603.3 SSD Services 69.8 69.2 269.0 257.1 ---------- ---------- ---------- ---------- Total Software Solutions Division Revenue $ 211.0 $ 227.7 $ 847.0 $ 860.4 ---------- ---------- ---------- ----------Total $ 1,140.8 $ 1,120.8 $ 4,365.4 $ 4,448.7 ========== ========== ========== ========== Juniper Networks, Inc. Preliminary Net Revenues by Geographic Region (in millions) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Americas $ 607.0 $ 521.2 $ 2,285.9 $ 2,238.0Europe, Middle East, and Africa 338.6 399.6 1,266.3 1,339.8Asia Pacific 195.2 200.0 813.2 870.9 ---------- ---------- ---------- ----------Total $ 1,140.8 $ 1,120.8 $ 4,365.4 $ 4,448.7 ========== ========== ========== ========== Juniper Networks, Inc. Preliminary Net Revenues by Market (in millions) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Service Provider $ 739.4 $ 676.5 $ 2,811.2 $ 2,833.0Enterprise 401.4 444.3 1,554.2 1,615.7 ---------- ---------- ---------- ----------Total $ 1,140.8 $ 1,120.8 $ 4,365.4 $ 4,448.7 ========== ========== ========== ========== Juniper Networks, Inc. Reconciliation between GAAP and non-GAAP Financial Measures (in millions, except percentages) (unaudited) Three Months Ended Twelve Months Ended ------------------------------- -------------------- December September December December December 31, 2012 30, 2012 31, 2011 31, 2012 31, 2011 --------- --------- --------- --------- ---------GAAP Operating income $ 130.9 $ 42.8 $ 133.2 $ 308.1 $ 618.5GAAP Operating margin 11.5% 3.8% 11.9% 7.1% 13.9% Share-based compensation expense C 57.5 59.1 52.5 243.4 222.2 Share-based compensation related payroll tax C 0.1 0.1 0.2 1.1 9.3 Amortization of purchased intangible assets A 7.2 9.0 6.9 32.3 27.1 Restructuring and other charges B 11.1 83.4 15.0 99.7 30.6 Other B -- (5.3) -- (5.3) -- Acquisition- related charges A,B 0.7 0.3 0.3 2.0 9.6 --------- --------- --------- --------- ---------Non-GAAP Operating income 207.5 189.4 208.1 681.3 917.3Non-GAAP Operating margin 18.2% 16.9% 18.6% 15.6% 20.6% ========= ========= ========= ========= =========GAAP Net income attributable to Juniper Networks 95.7 16.8 96.2 186.5 425.1 Share-based compensation expense C 57.5 59.1 52.5 243.4 222.2 Share-based compensation related payroll tax C 0.1 0.1 0.2 1.1 9.3 Amortization of purchased intangible assets A 7.2 9.0 6.9 32.3 27.1 Restructuring and other charges B 11.1 83.4 15.0 99.7 30.6 Other B -- (5.3) -- (5.3) -- Acquisition- related charges A,B 0.7 0.3 0.3 2.0 9.6 Gain on equity investments B (18.9) (5.8) (0.7) (25.5) 0.3 Income tax effect of non- GAAP exclusions B (8.8) (39.7) (20.3) (84.6) (79.6) --------- --------- --------- --------- ---------Non-GAAP Net income $ 144.6 $ 117.9 $ 150.1 $ 449.6 $ 644.6 --------- --------- --------- --------- ---------GAAP Diluted net income per share D $ 0.19 $ 0.03 $ 0.18 $ 0.35 $ 0.79 --------- --------- --------- --------- ---------Non-GAAP Diluted net income per share D $ 0.28 $ 0.22 $ 0.28 $ 0.85 $ 1.19 --------- --------- --------- --------- ---------Shares used in computing diluted net income per share D 513.1 524.5 533.3 526.2 541.4 ========= ========= ========= ========= =========
