APPENDIX
Beginning March 31, 2013, the following tables will be provided in the Investor Relations section of Juniper Networks website at www.juniper.net and will no longer be included in the press release.
Juniper Networks, Inc. Segment Operating Results (in millions, except percentages) (unaudited) Three Months Ended ------------------------------------------- December 31, September 30, December 31, 2012 2012 2011 ------------- ------------- -------------Platform Systems Division: Product revenue $ 706.1 $ 681.5 $ 689.0 Service revenue 223.7 211.4 204.1 ------------- ------------- ------------- Total PSD revenue 929.8 892.9 893.1 ------------- ------------- ------------- Non-GAAP PSD contribution margin $ 397.5 356.1 371.9Non-GAAP PSD contribution margin % 42.8% 39.9% 41.6%Software Solutions Division: Product revenue 141.2 156.7 158.5 Service revenue 69.8 68.7 69.2 ------------- ------------- ------------- Total SSD revenue 211.0 225.4 227.7 ------------- ------------- ------------- Non-GAAP SSD contribution margin $ 84.4 99.8 94.7 Non-GAAP SSD contribution margin % 40.0% 44.3% 41.6% ------------- ------------- -------------Total revenue 1,140.8 1,118.3 1,120.8 ------------- ------------- -------------Non-GAAP Segment contribution margin $ 481.9 455.9 466.6Non-GAAP Segment contribution margin % 42.2% 40.8% 41.6%Corporate unallocated expenses 274.4 266.5 258.5 ------------- ------------- -------------Non-GAAP Total segment operating margin $ 207.5 189.4 208.1 ------------- ------------- -------------Non-GAAP Total segment operating margin % 18.2% 16.9% 18.6% Share-based compensation expense (57.5) (59.1) (52.5) Share-based compensation related payroll tax (0.1) (0.1) (0.2) Amortization of purchased intangible assets (7.2) (9.0) (6.9) Restructuring and other charges (11.1) (83.4) (15.0) Other -- 5.3 -- Acquisition-related charges (0.7) (0.3) (0.3) ------------- ------------- -------------GAAP Operating income $ 130.9 $ 42.8 $ 133.2 ------------- ------------- ------------- Juniper Networks, Inc. Share-Based Compensation by Category (in millions) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Cost of revenues - Product $ 1.1 $ 1.2 $ 4.6 $ 4.6Cost of revenues - Service 3.8 3.6 17.0 15.7Research and development 28.9 22.3 109.1 97.7Sales and marketing 17.3 17.8 81.6 70.9General and administrative 6.4 7.6 31.1 33.3 ---------- ---------- ---------- ----------Total $ 57.5 $ 52.5 $ 243.4 $ 222.2 ---------- ---------- ---------- ---------- Juniper Networks, Inc. Share-Based Compensation Related Payroll Tax by Category (in millions) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Cost of revenues - Product $ -- $ 0.1 $ -- $ 0.3Cost of revenues - Service -- -- 0.1 1.0Research and development 0.1 -- 0.4 3.4Sales and marketing -- 0.1 0.5 4.1General and administrative -- -- 0.1 0.5 ---------- ---------- ---------- ----------Total $ 0.1 $ 0.2 $ 1.1 $ 9.3 ---------- ---------- ---------- ---------- Juniper Networks, Inc. Reconciliation between GAAP and non-GAAP Financial Measures (in millions, except percentages) (unaudited) Three Months Ended ------------------------------------------- December 31, September 30, December 31, 2012 2012 2011 ------------- ------------- -------------GAAP Gross margin - Product $ 551.2 $ 503.5 $ 536.9GAAP Product gross margin % of product revenue 65.1% 60.1% 63.4% Share-based compensation expense C 1.1 1.2 1.2 Share-based compensation related payroll tax C -- -- 0.1 Amortization of purchased intangible assets A 6.0 7.9 5.7 Restructuring and other charges B 0.5 52.4 -- Other B -- (5.3) -- ------------- ------------- -------------Non-GAAP Gross margin - Product 558.8 559.7 543.9 ------------- ------------- -------------Non-GAAP Product gross margin % of product revenue 66.0% 66.8% 64.2%GAAP Gross margin - Service 181.8 170.3 162.0GAAP Service gross margin % of service revenue 62.0% 60.8% 59.3% Share-based compensation expense C 3.8 3.8 3.6 Share-based compensation related payroll tax C -- 0.1 -- ------------- ------------- -------------Non-GAAP Gross margin - Service 185.6 174.2 165.6 ------------- ------------- -------------Non-GAAP Service gross margin % of service revenue 63.2% 62.2% 60.6%GAAP Gross margin 733.0 673.8 698.9GAAP Gross margin % of revenue 64.3% 60.3% 62.4% Share-based compensation expense C 4.9 5.0 4.8 Share-based compensation related payroll tax C -- 0.1 0.1 Amortization of purchased intangible assets A 6.0 7.9 5.7 Restructuring and other charges B 0.5 52.4 -- Other B -- (5.3) -- ------------- ------------- -------------Non-GAAP Gross margin 744.4 733.9 709.5 ------------- ------------- -------------Non-GAAP Gross margin % of revenue 65.3% 65.6% 63.3%GAAP Research and development expense 275.1 288.2 250.5 Share-based compensation expense C (28.9) (26.0) (22.3) Share-based compensation related payroll tax C (0.1) (0.1) -- ------------- ------------- -------------Non-GAAP Research and development expense 246.1 262.1 228.2 ------------- ------------- -------------GAAP Sales and marketing expense 263.8 261.0 253.2 Share-based compensation expense C (17.3) (21.4) (17.8) Share-based compensation related payroll tax C -- -- (0.1) ------------- ------------- -------------Non-GAAP Sales and marketing expense 246.5 239.6 235.3 ------------- ------------- -------------GAAP General and administrative expense 50.7 49.4 45.5 Share-based compensation expense C (6.4) (6.7) (7.6) Share-based compensation related payroll tax C -- 0.1 -- ------------- ------------- -------------Non-GAAP General and administrative expense $ 44.3 $ 42.8 $ 37.9 ------------- ------------- ------------- Juniper Networks, Inc. Reconciliation between GAAP and non-GAAP Financial Measures (in millions, except percentages) (unaudited) Three Months Ended ------------------------------------------- December 31, September 30, December 31, 2012 2012 2011 ------------- ------------- -------------GAAP Operating expense $ 602.1 $ 631.0 $ 565.7 Share-based compensation expense C (52.6) (54.1) (47.7) Share-based compensation related payroll tax C (0.1) -- (0.1) Amortization of purchased intangible assets A (1.2) (1.1) (1.2) Restructuring and other charges B (10.6) (31.0) (15.0) Acquisition-related charges A,B (0.7) (0.3) (0.3) ------------- ------------- -------------Non-GAAP Operating expense 536.9 544.5 501.4 ------------- ------------- -------------GAAP Operating income 130.9 42.8 133.2GAAP Operating margin 11.5% 3.8% 11.9% Share-based compensation expense C 57.5 59.1 52.5 Share-based compensation related payroll tax C 0.1 0.1 0.2 Amortization of purchased intangible assets A 7.2 9.0 6.9 Restructuring and other charges B 11.1 83.4 15.0 Other B -- (5.3) -- Acquisition-related charges A,B 0.7 0.3 0.3 ------------- ------------- -------------Non-GAAP Operating income 207.5 189.4 208.1 ------------- ------------- -------------Non-GAAP Operating margin 18.2% 16.9% 18.6%GAAP Income Tax Provision 44.2 22.0 26.3GAAP Income Tax Rate 31.6% 56.7% 21.5% Income tax effect of non- GAAP exclusions B 8.8 39.7 20.3 ------------- ------------- -------------Non-GAAP Provision for income tax 53.0 61.7 46.6 ------------- ------------- -------------Non-GAAP Income tax rate 26.8% 34.4% 23.7%GAAP Net income attributable to Juniper Networks 95.7 16.8 96.2 Share-based compensation expense C 57.5 59.1 52.5 Share-based compensation related payroll tax C 0.1 0.1 0.2 Amortization of purchased intangible assets A 7.2 9.0 6.9 Restructuring and other charges B 11.1 83.4 15.0 Other B -- (5.3) -- Acquisition-related charges A,B 0.7 0.3 0.3 Gain on equity investments B (18.9) (5.8) (0.7) Income tax effect of non- GAAP exclusions B (8.8) (39.7) (20.3) ------------- ------------- -------------Non-GAAP Net income $ 144.6 $ 117.9 $ 150.1 ============= ============= =============GAAP Diluted net income per share D $ 0.19 $ 0.03 $ 0.18 ============= ============= =============Non-GAAP Diluted net income per share D $ 0.28 $ 0.22 $ 0.28 ============= ============= =============Shares used in computing diluted non-GAAP net income per share D 513.1 524.5 533.3 ============= ============= =============
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Investor Relations:
Kathleen Nemeth
Juniper Networks
(408) 936-5397
kbela@juniper.net
Media Relations:
Cindy Ta
Juniper Networks
(408) 936-6131
cta@juniper.net



