It was a busy day for earnings announcements in the tech industry as Polycom, Riverbed, and Juniper Networks all reported second quarter earnings after the bell on Tuesday. But all three companies have struggled in recent quarters, cutting guidance and causing some worries for investors and analysts along the way.
Nevertheless, although both Riverbed and Juniper did better than Wall Street expected for Q2, that news was overshadowed by a new partnership between the two companies.
According to the deal, Juniper Networks will be licensing Riverbed's application delivery controller technology for approximately $75 million.
For Juniper, the goal is to enhance its portfolio in key network domains across the enterprise, including across data center, WANs, and consumer and business devices through new application networking technologies.
Riverbed's Steelhead Mobile technology will also be integrated with Juniper's Junos Pulse client for a new acceleration solution for mobile phones and tablets.
Nevertheless, their earnings reports are definitely good news amid a shaky time for most tech companies reporting earnings over the last few weeks.
Riverbed reported second quarter earnings of $18 million, or 11 cents a share (statement). Non-GAAP earnings were 23 cents a share on a revenue of $199 million.
Wall Street was expecting Riverbed to report second quarter earnings of 21 cents a share on revenue of $194 million.
Riverbed did not provide guidance in its second quarter earnings report, but Wall Street is looking for earnings of 24 cents a share on revenue of $209.6 million.
Juniper Networks reported a second quarter net income of $58 million, or 11 cents a share (statement). Non-GAAP earnings were 19 cents a share on a revenue of $1.074 billion.
Wall Street was expecting Juniper to deliver second quarter earnings of 16 cents a share on revenue of $1.047 billion.
CEO Kevin Johnson commented in prepared remarks:
New products continued to gain traction in the marketplace with key customer wins across our portfolio. In a challenging macro environment, we remain focused on our operational execution, delivering great products, driving revenue and managing our cost base.
For the outlook, Juniper Networks is predicting a revenue of $1,040 million to $1,075 million at the end of Q3 2012 with non-GAAP earnings between 15 to 18 cents a share.
Wall Street is expecting Juniper to report third quarter earnings of 21 cents a share on revenue of $1.1 billion.
Polycom also did well enough. The unified communications provider reported second quarter earnings of $7 million, or 4 cents a share (statement). Non-GAAP earnings were 22 cents a share on a revenue of $359 million from continuing operations only.
That number jumps to $379 million when including revenues from the company’s Enterprise Wireless Solutions business of $21 million for the quarter. But Polycom announced back in May that it will be selling off that unit.
Wall Street was expecting second quarter earnings of 20 cents a share on revenue of $359.8 million.
CEO and president Andrew M. Miller commented in prepared remarks, attributing the quarter to sales for the company's UC solutions:
In the second half of this year, we will be launching a series of products that we believe will be game-changing and will allow us to expand our addressable market and extend our advantages versus the competition. Most recently, we launched the new Polycom RealPresence Resource Manager offering that further differentiates our Polycom RealPresence Platform with support for large scale video deployments of up to 10,000 endpoints, including mobile devices, multi-tenancy for service providers to deliver Video-as-a-Service cost-effectively, and a new suite of rich, open APIs that extends the value and ecosystem around our RealPresence Platform.
Polycom also didn't provide an outlook for the third quarter, but Wall Street is looking for third quarter earnings of 22 cents a share on revenue of $370.8 million.