News Column

Juniper Networks Reports Preliminary Fourth Quarter and Fiscal Year 2012 Financial Results

Page 9 of 9

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





Source: Marketwire


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