Juniper, A10 Networks report better-than-expected Q2 results
Juniper Networks and A10 Networks on Tuesday both reported slightly better-than-expected second quarter financial results. Despite an uncertain macro environment, demand has held steady, the companies reported, arguing the long-term outlook looks more promising.
Juniper's second quarter non-GAAP net income was $116.3 million, a decrease of 17 percent year-over-year. Non-GAAP diluted earnings per share came to 35 cents. Net revenues were $1.086 billion, a decrease of 1 percent year-over-year,
Analysts were expecting earnings of 34 cents per share on revenue of $1.05 billion.
"We experienced solid demand during the June quarter, as our combination of technological differentiation and go- to-market execution drove a second consecutive quarter of positive order growth," Juniper CEO Rami Rahim said in a statement. "While the global macro environment remains uncertain, the strategic importance of the global network has never been clearer and we remain confident regarding the long-term outlook for our business."
For the third quarter, Juniper expects non-GAAP net income per share will be approximately 43 cents, plus or minus 5 cents. It expects revenue of approximately $1.125 billion, plus or minus $50 million.
The company expects to see sequential revenue and earnings growth thanks in part to strength within its service provider and cloud verticals -- which could help offset uncertainty within the enterprise market. Juniper has a "healthy backlog," according to CFO Ken Miller, and is "optimistic regarding our ability to navigate COVID-19 related supply chain challenges."
Juniper also reported that its board of directors has declared a cash dividend of 20 cents per share to be paid on September 22.
A10 Networks also reported second quarter financial results coming in slightly ahead of estimates.
Q2 non-GAAP net income per share came to 9 cents. Revenue was $52.5 million, up 7 percent year-over-year.
Analysts were expecting earnings of 8 cents on revenue of $52.1 million.
"A10 continues to make progress on our business model transformation, resulting in improved earnings power, amidst an uncertain environment," A10 CEO Dhrupad Trivedi said in a statement. "To date, we have successfully navigated the challenges related to the pandemic and associated economic disruptions. Demand remains strong, though sales cycles, particularly in Asia, have been elongated. Increasingly, our global footprint and customer mix serve as important and durable competitive advantages."
The company was able to offset revenue declines from the Japan and Asia Pacific regions with improvements in North America and EMEA, Trivedi said.
"We maintain a strong market position with service providers and their investment cycles which can last multiple years and result in variable demand levels within a 90-day period," the CEO said.