(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Exhibit No. | Description | |
99.1 | ||
99.2 | ||
104 | Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document |
Juniper Networks, Inc. | |||
April 28, 2020 | By: | /s/ Brian M. Martin | |
Name: | Brian M. Martin | ||
Title: | Senior Vice President and General Counsel |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net revenues: | |||||||
Product | $ | 608.8 | $ | 618.7 | |||
Service | 389.2 | 383.0 | |||||
Total net revenues | 998.0 | 1,001.7 | |||||
Cost of revenues: | |||||||
Product | 269.0 | 270.0 | |||||
Service | 149.7 | 149.4 | |||||
Total cost of revenues | 418.7 | 419.4 | |||||
Gross margin | 579.3 | 582.3 | |||||
Operating expenses: | |||||||
Research and development | 232.5 | 227.6 | |||||
Sales and marketing | 239.2 | 228.5 | |||||
General and administrative | 59.3 | 68.2 | |||||
Restructuring charges | 8.9 | 15.3 | |||||
Total operating expenses | 539.9 | 539.6 | |||||
Operating income | 39.4 | 42.7 | |||||
Other (expense) income, net | (11.1 | ) | 1.8 | ||||
Income before income taxes | 28.3 | 44.5 | |||||
Income tax provision | 7.9 | 13.4 | |||||
Net income | $ | 20.4 | $ | 31.1 | |||
Net income per share: | |||||||
Basic | $ | 0.06 | $ | 0.09 | |||
Diluted | $ | 0.06 | $ | 0.09 | |||
Weighted-average shares used to compute net income per share: | |||||||
Basic | 330.8 | 348.1 | |||||
Diluted | 335.1 | 352.7 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Routing | $ | 314.5 | $ | 374.7 | |||
Switching | 219.8 | 176.4 | |||||
Security | 74.5 | 67.6 | |||||
Total Product | 608.8 | 618.7 | |||||
Total Service | 389.2 | 383.0 | |||||
Total | $ | 998.0 | $ | 1,001.7 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cloud | $ | 261.9 | $ | 223.1 | |||
Service Provider | 375.5 | 435.6 | |||||
Enterprise | 360.6 | 343.0 | |||||
Total | $ | 998.0 | $ | 1,001.7 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Americas | $ | 579.5 | $ | 543.6 | |||
Europe, Middle East, and Africa | 255.0 | 286.2 | |||||
Asia Pacific | 163.5 | 171.9 | |||||
Total | $ | 998.0 | $ | 1,001.7 |
Three Months Ended | ||||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||||||
GAAP operating income | $ | 39.4 | $ | 178.6 | $ | 42.7 | ||||||
GAAP operating margin | 3.9 | % | 14.8 | % | 4.3 | % | ||||||
Share-based compensation expense | C | 42.0 | 55.1 | 33.9 | ||||||||
Share-based payroll tax expense | C | 4.0 | 0.4 | 4.7 | ||||||||
Amortization of purchased intangible assets | A | 9.9 | 9.9 | 4.9 | ||||||||
Restructuring charges (benefits) | B | 8.9 | (0.3 | ) | 15.3 | |||||||
Acquisition and strategic investment related charges | A | 1.3 | 1.0 | 10.2 | ||||||||
Strategic partnership-related charges | B | — | — | 0.8 | ||||||||
Non-GAAP operating income | $ | 105.5 | $ | 244.7 | $ | 112.5 | ||||||
Non-GAAP operating margin | 10.6 | % | 20.3 | % | 11.2 | % | ||||||
GAAP net income | $ | 20.4 | $ | 168.4 | $ | 31.1 | ||||||
Share-based compensation expense | C | 42.0 | 55.1 | 33.9 | ||||||||
Share-based payroll tax expense | C | 4.0 | 0.4 | 4.7 | ||||||||
Amortization of purchased intangible assets | A | 9.9 | 9.9 | 4.9 | ||||||||
Restructuring charges (benefits) | B | 8.9 | (0.3 | ) | 15.3 | |||||||
Acquisition and strategic investment related charges | A | 1.3 | 1.0 | 10.2 | ||||||||
Strategic partnership-related charges | B | — | — | 0.8 | ||||||||
Loss on equity investments | B | 1.5 | 0.8 | 1.1 | ||||||||
Recognition of previously unrecognized tax benefits | B | — | (25.4 | ) | — | |||||||
Income tax effect of non-GAAP exclusions | B | (10.8 | ) | (11.2 | ) | (9.3 | ) | |||||
Non-GAAP net income | $ | 77.2 | $ | 198.7 | $ | 92.7 | ||||||
GAAP diluted net income per share | $ | 0.06 | $ | 0.49 | $ | 0.09 | ||||||
Non-GAAP diluted net income per share | D | $ | 0.23 | $ | 0.58 | $ | 0.26 | |||||
Shares used in computing diluted net income per share | 335.1 | 340.8 | 352.7 |
March 31, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,398.6 | $ | 1,215.8 | |||
Short-term investments | 523.0 | 738.0 | |||||
Accounts receivable, net of allowances | 675.1 | 879.7 | |||||
Prepaid expenses and other current assets | 376.0 | 376.3 | |||||
Total current assets | 2,972.7 | 3,209.8 | |||||
Property and equipment, net | 802.9 | 830.9 | |||||
Operating lease right-of-use assets | 165.8 | 169.7 | |||||
Long-term investments | 608.3 | 589.8 | |||||
Purchased intangible assets, net | 170.7 | 185.8 | |||||
Goodwill | 3,337.1 | 3,337.1 | |||||
Other long-term assets | 552.0 | 514.6 | |||||
Total assets | $ | 8,609.5 | $ | 8,837.7 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 236.4 | $ | 219.5 | |||
Accrued compensation | 165.9 | 229.0 | |||||
Deferred revenue | 854.7 | 812.9 | |||||
Other accrued liabilities | 279.5 | 282.5 | |||||
Total current liabilities | 1,536.5 | 1,543.9 | |||||
Long-term debt | 1,712.9 | 1,683.9 | |||||
Long-term deferred revenue | 400.1 | 410.5 | |||||
Long-term income taxes payable | 369.9 | 372.6 | |||||
Long-term operating lease liabilities | 153.6 | 158.1 | |||||
Other long-term liabilities | 45.8 | 58.1 | |||||
Total liabilities | 4,218.8 | 4,227.1 | |||||
Total stockholders' equity | 4,390.7 | 4,610.6 | |||||
Total liabilities and stockholders' equity | $ | 8,609.5 | $ | 8,837.7 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 20.4 | $ | 31.1 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Share-based compensation expense | 42.0 | 33.9 | |||||
Depreciation, amortization, and accretion | 54.0 | 48.7 | |||||
Operating lease assets expense | 10.5 | 9.6 | |||||
Other | 10.3 | (2.2 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable, net | 202.6 | 108.6 | |||||
Prepaid expenses and other assets | (37.1 | ) | (9.1 | ) | |||
Accounts payable | 18.4 | 10.1 | |||||
Accrued compensation | (59.8 | ) | (54.9 | ) | |||
Income taxes payable | 5.1 | (5.7 | ) | ||||
Other accrued liabilities | (27.0 | ) | (27.9 | ) | |||
Deferred revenue | 32.8 | 17.2 | |||||
Net cash provided by operating activities | 272.2 | 159.4 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (21.8 | ) | (27.9 | ) | |||
Purchases of available-for-sale debt securities | (257.1 | ) | (884.4 | ) | |||
Proceeds from sales of available-for-sale debt securities | 94.0 | 232.8 | |||||
Proceeds from maturities and redemptions of available-for-sale debt securities | 354.0 | 578.3 | |||||
Purchases of equity securities | (3.1 | ) | (5.1 | ) | |||
Proceeds from sales of equity securities | 3.1 | 2.2 | |||||
Subsequent payments related to acquisitions in prior years | (0.2 | ) | — | ||||
Net cash provided by (used in) investing activities | 168.9 | (104.1 | ) | ||||
Cash flows from financing activities: | |||||||
Repurchase and retirement of common stock | (203.2 | ) | (2.9 | ) | |||
Proceeds from issuance of common stock | 27.1 | 29.5 | |||||
Payment of dividends | (65.5 | ) | (66.2 | ) | |||
Payment of debt | — | (350.0 | ) | ||||
Net cash used in financing activities | (241.6 | ) | (389.6 | ) | |||
Effect of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (16.2 | ) | 1.6 | ||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 183.3 | (332.7 | ) | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 1,276.5 | 2,505.8 | |||||
Cash, cash equivalents, and restricted cash at end of period | $ | 1,459.8 | $ | 2,173.1 |
(in millions, except per share amounts and percentages) | Q1'20 | Q4'19 | Q1'19 | Q/Q Change | Y/Y Change | ||||||||||||
Revenue | $ | 998.0 | $ | 1,208.1 | $ | 1,001.7 | (17 | )% | — | % | |||||||
Product | 608.8 | 791.9 | 618.7 | (23 | )% | (2 | )% | ||||||||||
Service | 389.2 | 416.2 | 383.0 | (6 | )% | 2 | % | ||||||||||
Gross margin % | 58.0 | % | 59.5 | % | 58.1 | % | (1.5 | )pts | (0.1 | )pts | |||||||
Research and development | 232.5 | 239.6 | 227.6 | (3 | )% | 2 | % | ||||||||||
Sales and marketing | 239.2 | 246.5 | 228.5 | (3 | )% | 5 | % | ||||||||||
General and administrative | 59.3 | 54.9 | 68.2 | 8 | % | (13 | )% | ||||||||||
Restructuring charges (benefits) | 8.9 | (0.3 | ) | 15.3 | N/M | (42 | )% | ||||||||||
Total operating expenses | $ | 539.9 | $ | 540.7 | $ | 539.6 | — | % | — | % | |||||||
Operating margin % | 3.9 | % | 14.8 | % | 4.3 | % | (10.9 | )pts | (0.4 | )pts | |||||||
Net income | $ | 20.4 | $ | 168.4 | $ | 31.1 | (88 | )% | (34 | )% | |||||||
Diluted net income per share | $ | 0.06 | $ | 0.49 | $ | 0.09 | (88 | )% | (33 | )% |
(in millions, except per share amounts and percentages) | Q2'20 Guidance | Q1'20 | Q4'19 | Q1'19 | Q/Q Change | Y/Y Change | |||||||||||||
Revenue | $1,060 +/- $50 | $ | 998.0 | $ | 1,208.1 | $ | 1,001.7 | (17 | )% | — | % | ||||||||
Product | 608.8 | 791.9 | 618.7 | (23 | )% | (2 | )% | ||||||||||||
Service | 389.2 | 416.2 | 383.0 | (6 | )% | 2 | % | ||||||||||||
Gross margin % | 59.5% +/- 1.0% | 59.6 | % | 60.7 | % | 59.3 | % | (1.1 | )pts | 0.3 | pts | ||||||||
Research and development | 215.8 | 213.4 | 213.5 | 1 | % | 1 | % | ||||||||||||
Sales and marketing | 222.9 | 228.8 | 217.3 | (3 | )% | 3 | % | ||||||||||||
General and administrative | 50.2 | 46.4 | 50.9 | 8 | % | (1 | )% | ||||||||||||
Total operating expenses | $480 +/- $5 | $ | 488.9 | $ | 488.6 | $ | 481.7 | — | % | 1 | % | ||||||||
Operating margin % | ~14% at the midpoint | 10.6 | % | 20.3 | % | 11.2 | % | (9.7 | )pts | (0.6 | )pts | ||||||||
Net income | $ | 77.2 | $ | 198.7 | $ | 92.7 | (61 | )% | (17 | )% | |||||||||
Diluted net income per share | $0.34 +/- $0.05 | $ | 0.23 | $ | 0.58 | $ | 0.26 | (60 | )% | (12 | )% |
• | Routing product revenue: $314 million, down 16% year-over-year and down 26% sequentially. The year-over-year decrease was primarily due to Service Provider and to a lesser extent, Enterprise, partially offset by strength in Cloud. The sequential decline was primarily due to Service Provider. The COVID-19 pandemic-related supply constraints impacted both the year-over-year and sequential results. The PTX product family grew year-over-year and the MX product family declined year-over-year. |
• | Switching product revenue: $220 million, up 25% year-over-year and down 18% sequentially. The year-over-year increase was primarily driven by Cloud, and to a lesser extent, Enterprise and Service Provider. The sequential decrease was primarily driven by Enterprise. The QFX product family increased year-over-year and decreased sequentially. The EX product family was essentially flat year-over-year and declined sequentially. |
• | Security product revenue: $75 million, up 10% year-over-year and down 26% sequentially. The year-over-year increase was due to Cloud and Service Provider, partially offset by decline in Enterprise. The sequential decrease was primarily driven by Enterprise, and to a lesser extent, Service Provider. |
• | Service revenue: $389 million, up 2% year-over-year and down 6% sequentially. The year-over-year increase was primarily driven by strong sales of support contracts. The sequential decrease was primarily due to timing of renewals and professional services projects. |
• | Cloud: $262 million, up 17% year-over-year and down 6% sequentially. The year-over-year increase was primarily driven by Switching and to a lesser extent, Routing and Security, partially offset by a decline in Services. The sequential decrease was primarily driven by Routing and Services, partially offset by an increase in Security. |
• | Service Provider: $376 million, down 14% year-over-year and down 24% sequentially. The year-over-year decrease was primarily due to Routing. If not for supply constraints related to the COVID-19 pandemic, Service Provider revenue would have been down mid to high-single digits. All products and Services declined sequentially. |
• | Enterprise: $360 million, up 5% year-over-year and down 17% sequentially. The year-over-year increase was primarily driven by Services and Switching, partially offset by declines in Routing and Security. All products and Services declined sequentially. |
• | Americas: $579 million, up 7% year-over-year and down 14% sequentially. Year-over-year, the increase was primarily driven by Cloud, and to a lesser extent, Enterprise, partially offset by a decline in Service Provider. All verticals declined sequentially. |
• | EMEA: $255 million, down 11% year-over-year and down 24% sequentially. Year-over-year, the decrease was primarily due to Service Provider, and to a lesser extent, Cloud and Enterprise. All verticals declined sequentially. |
• | APAC: $164 million, down 5% year-over-year and down 16% sequentially. The year-over-year and sequential decrease was primarily due to Enterprise, and to a lesser extent, Service Provider, partially offset by growth in Cloud. |
• | GAAP gross margin: 58.0%, compared to 58.1% from the prior year and 59.5% from last quarter. |
• | Non-GAAP gross margin: 59.6%, compared to 59.3% from the prior year and 60.7% from last quarter. |
• | GAAP product gross margin: 55.8%, down 0.5 points from the prior year and down 1.4 points from last quarter. |
• | Non-GAAP product gross margin: 57.5%, up 0.1 points from the prior year and down 1.0 points from last quarter. |
• | GAAP service gross margin: 61.5%, up 0.5 points from the prior year and down 2.4 points from last quarter. |
• | Non-GAAP service gross margin: 62.8%, up 0.5 points from the prior year and down 2.1 points from last quarter. |
• | GAAP operating expenses: $540 million, flat year-over-year, and a decrease of $1 million sequentially. |
• | Non-GAAP operating expenses: $489 million, an increase of $7 million year-over-year, and flat sequentially. |
• | GAAP operating margin: 3.9%, a decrease of 0.4 points year-over-year and a decrease of 10.8 points sequentially. |
• | Non-GAAP operating margin: 10.6%, a decrease of 0.7 points year-over-year and a decrease of 9.7 points sequentially. |
• | GAAP tax rate: 28.0%, compared to 30.0% in the prior year and 3.2% last quarter. |
• | Non-GAAP tax rate: 19.5%, compared to 19.6% in the prior year and 17.5% last quarter. |
• | GAAP diluted earnings per share: $0.06, a decrease of $0.03 year-over-year and a decrease of $0.43 sequentially. |
• | Non-GAAP diluted earnings per share: $0.23, a decrease of $0.03 year-over-year and a decrease of $0.35 sequentially. |
(in millions, except days sales outstanding ("DSO"), and headcount) | Q1'20 | Q4'19 | Q3'19 | Q2'19 | Q1'19 | ||||||||||||||
Cash(1) | $ | 2,529.9 | $ | 2,543.6 | $ | 2,826.7 | $ | 2,875.0 | $ | 3,502.7 | |||||||||
Debt(2) | 1,712.9 | 1,683.9 | 1,687.6 | 1,790.0 | 1,789.6 | ||||||||||||||
Net cash(3) | 817.0 | 859.7 | 1,139.1 | 1,085.0 | 1,713.1 | ||||||||||||||
Operating cash flow | 272.2 | 95.7 | 185.0 | 88.8 | 159.4 | ||||||||||||||
Capital expenditures | 21.8 | 26.1 | 28.3 | 27.3 | 27.9 | ||||||||||||||
Depreciation and amortization | 53.7 | 55.2 | 56.1 | 56.4 | 51.0 | ||||||||||||||
Share repurchases(4) | 200.0 | 200.0 | 50.0 | 300.0 | — | ||||||||||||||
Dividends | $ | 65.5 | $ | 63.7 | $ | 64.7 | $ | 65.5 | $ | 66.2 | |||||||||
Diluted shares | 335.1 | 340.8 | 345.5 | 349.1 | 352.7 | ||||||||||||||
DSO | 61 | 66 | 51 | 54 | 58 | ||||||||||||||
Headcount | 9,586 | 9,419 | 9,283 | 8,995 | 9,068 |
• | Cash flow from operations: $272 million, up $113 million year-over-year and up $177 million sequentially. |
• | DSO: 61 days, a 5-day decrease from the prior quarter, driven primarily by lower overall invoicing in Q1’20 as well as higher collections of in-quarter invoicing, partially offset by lower revenue. |
• | In the quarter, we paid a dividend of $0.20 per share for a total of $66 million. |
• | In the quarter, we repurchased $200 million worth of shares. In addition, the $200 million ASR entered into in Q4’19 settled in the quarter. |
• | Total deferred revenue was $1,255 million, up $24 million year-over-year and up $31 million sequentially. |
• | Product deferred revenue was $112 million, down $28 million year-over-year and down $21 million sequentially. |
• | Service deferred revenue was $1,143 million, up $52 million year-over-year and up $53 million sequentially. |
(in millions) | March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||||
Deferred product revenue, net | $ | 111.5 | $ | 132.6 | $ | 139.6 | |||||
Deferred service revenue, net | 1,143.3 | 1,090.8 | 1,091.3 | ||||||||
Total | $ | 1,254.8 | $ | 1,223.4 | $ | 1,230.9 |
• | Ending headcount for Q1'20 was 9,586, an increase of 518 employees year-over-year and increase of 167 sequentially. The year-over-year increase was primarily a result of the acquisition of Mist Systems in Q2'19, additional hires in our R&D and go-to-market organizations, partially offset by outsourcing IT services. The sequential increase was primarily a result of additional hires in our R&D and go-to-market organizations. |
As of | |||||||
March 31, 2020 | December 31, 2019 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 121.0 | $ | 141.7 | |||
Deferred gross product revenue | 121.0 | 141.7 | |||||
Deferred cost of product revenue | (9.5 | ) | (9.1 | ) | |||
Deferred product revenue, net | 111.5 | 132.6 | |||||
Deferred service revenue, net | 1,143.3 | 1,090.8 | |||||
Total | $ | 1,254.8 | $ | 1,223.4 | |||
Reported as: | |||||||
Current | $ | 854.7 | $ | 812.9 | |||
Long-term | 400.1 | 410.5 | |||||
Total | $ | 1,254.8 | $ | 1,223.4 |
Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q/Q Change | Y/Y Change | |||||||||||||||||||||||||||
Cloud | $ | 223.1 | $ | 285.0 | $ | 271.9 | $ | 279.8 | $ | 261.9 | $ | (17.9 | ) | (6.4 | )% | $ | 38.8 | 17.4 | % | ||||||||||||||
Service Provider | 435.6 | 447.2 | 452.5 | 492.5 | 375.5 | (117.0 | ) | (23.8 | )% | (60.1 | ) | (13.8 | )% | ||||||||||||||||||||
Enterprise | 343.0 | 370.3 | 408.7 | 435.8 | 360.6 | (75.2 | ) | (17.3 | )% | 17.6 | 5.1 | % | |||||||||||||||||||||
Total revenue | $ | 1,001.7 | $ | 1,102.5 | $ | 1,133.1 | $ | 1,208.1 | $ | 998.0 | $ | (210.1 | ) | (17.4 | )% | $ | (3.7 | ) | (0.4 | )% |
Three Months Ended | |||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||||
GAAP gross margin - Product | $ | 339.8 | $ | 453.2 | $ | 348.7 | |||||
GAAP product gross margin % of product revenue | 55.8 | % | 57.2 | % | 56.4 | % | |||||
Share-based compensation expense | 1.4 | 1.4 | 1.9 | ||||||||
Share-based payroll tax expense | 0.2 | — | 0.3 | ||||||||
Amortization of purchased intangible assets | 8.4 | 8.3 | 4.4 | ||||||||
Non-GAAP gross margin - Product | $ | 349.8 | $ | 462.9 | $ | 355.3 | |||||
Non-GAAP product gross margin % of product revenue | 57.5 | % | 58.5 | % | 57.4 | % | |||||
GAAP gross margin - Service | $ | 239.5 | $ | 266.1 | $ | 233.6 | |||||
GAAP service gross margin % of service revenue | 61.5 | % | 63.9 | % | 61.0 | % | |||||
Share-based compensation expense | 4.2 | 4.3 | 4.5 | ||||||||
Share-based payroll tax expense | 0.9 | — | 0.8 | ||||||||
Non-GAAP gross margin - Service | $ | 244.6 | $ | 270.4 | $ | 238.9 | |||||
Non-GAAP service gross margin % of service revenue | 62.8 | % | 65.0 | % | 62.4 | % | |||||
GAAP gross margin | $ | 579.3 | $ | 719.3 | $ | 582.3 | |||||
GAAP gross margin % of revenue | 58.0 | % | 59.5 | % | 58.1 | % | |||||
Share-based compensation expense | 5.6 | 5.7 | 6.4 | ||||||||
Share-based payroll tax expense | 1.1 | — | 1.1 | ||||||||
Amortization of purchased intangible assets | 8.4 | 8.3 | 4.4 | ||||||||
Non-GAAP gross margin | $ | 594.4 | $ | 733.3 | $ | 594.2 | |||||
Non-GAAP gross margin % of revenue | 59.6 | % | 60.7 | % | 59.3 | % | |||||
GAAP research and development expense | $ | 232.5 | $ | 239.6 | $ | 227.6 | |||||
Share-based compensation expense | (15.2 | ) | (26.0 | ) | (12.2 | ) | |||||
Share-based payroll tax expense | (1.5 | ) | (0.2 | ) | (1.9 | ) | |||||
Non-GAAP research and development expense | $ | 215.8 | $ | 213.4 | $ | 213.5 | |||||
GAAP sales and marketing expense | $ | 239.2 | $ | 246.5 | $ | 228.5 | |||||
Share-based compensation expense | (13.8 | ) | (16.0 | ) | (9.4 | ) | |||||
Share-based payroll tax expense | (1.1 | ) | (0.2 | ) | (1.4 | ) | |||||
Amortization of purchased intangible assets | (1.4 | ) | (1.5 | ) | (0.4 | ) | |||||
Non-GAAP sales and marketing expense | $ | 222.9 | $ | 228.8 | $ | 217.3 | |||||
GAAP general and administrative expense | $ | 59.3 | $ | 54.9 | $ | 68.2 | |||||
Share-based compensation expense | (7.4 | ) | (7.4 | ) | (5.9 | ) | |||||
Share-based payroll tax expense | (0.3 | ) | — | (0.3 | ) | ||||||
Amortization of purchased intangible assets | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||
Acquisition and strategic investment related charges | (1.3 | ) | (1.0 | ) | (10.2 | ) | |||||
Strategic partnership-related charges | — | — | (0.8 | ) | |||||||
Non-GAAP general and administrative expense | $ | 50.2 | $ | 46.4 | $ | 50.9 |
Three Months Ended | |||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||||
GAAP operating expenses | $ | 539.9 | $ | 540.7 | $ | 539.6 | |||||
GAAP operating expenses % of revenue | 54.1 | % | 44.8 | % | 53.9 | % | |||||
Share-based compensation expense | (36.4 | ) | (49.4 | ) | (27.5 | ) | |||||
Share-based payroll tax expense | (2.9 | ) | (0.4 | ) | (3.6 | ) | |||||
Amortization of purchased intangible assets | (1.5 | ) | (1.6 | ) | (0.5 | ) | |||||
Restructuring (charges) benefits | (8.9 | ) | 0.3 | (15.3 | ) | ||||||
Acquisition and strategic investment related charges | (1.3 | ) | (1.0 | ) | (10.2 | ) | |||||
Strategic partnership-related charges | — | — | (0.8 | ) | |||||||
Non-GAAP operating expenses | $ | 488.9 | $ | 488.6 | $ | 481.7 | |||||
Non-GAAP operating expenses % of revenue | 49.0 | % | 40.4 | % | 48.1 | % | |||||
GAAP operating income | $ | 39.4 | $ | 178.6 | $ | 42.7 | |||||
GAAP operating margin | 3.9 | % | 14.8 | % | 4.3 | % | |||||
Share-based compensation expense | 42.0 | 55.1 | 33.9 | ||||||||
Share-based payroll tax expense | 4.0 | 0.4 | 4.7 | ||||||||
Amortization of purchased intangible assets | 9.9 | 9.9 | 4.9 | ||||||||
Restructuring charges (benefits) | 8.9 | (0.3 | ) | 15.3 | |||||||
Acquisition and strategic investment related charges | 1.3 | 1.0 | 10.2 | ||||||||
Strategic partnership-related charges | — | — | 0.8 | ||||||||
Non-GAAP operating income | $ | 105.5 | $ | 244.7 | $ | 112.5 | |||||
Non-GAAP operating margin | 10.6 | % | 20.3 | % | 11.2 | % | |||||
GAAP income tax provision | $ | 7.9 | $ | 5.6 | $ | 13.4 | |||||
GAAP income tax rate | 28.0 | % | 3.2 | % | 30.0 | % | |||||
Recognition of previously unrecognized tax benefits | — | 25.4 | — | ||||||||
Income tax effect of non-GAAP exclusions | 10.8 | 11.2 | 9.3 | ||||||||
Non-GAAP provision for income tax | $ | 18.7 | $ | 42.2 | $ | 22.7 | |||||
Non-GAAP income tax rate | 19.5 | % | 17.5 | % | 19.6 | % |
Three Months Ended | |||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||||
GAAP net income | $ | 20.4 | $ | 168.4 | $ | 31.1 | |||||
Share-based compensation expense | 42.0 | 55.1 | 33.9 | ||||||||
Share-based payroll tax expense | 4.0 | 0.4 | 4.7 | ||||||||
Amortization of purchased intangible assets | 9.9 | 9.9 | 4.9 | ||||||||
Restructuring charges (benefits) | 8.9 | (0.3 | ) | 15.3 | |||||||
Acquisition and strategic investment related charges | 1.3 | 1.0 | 10.2 | ||||||||
Strategic partnership-related charges | — | — | 0.8 | ||||||||
Loss on equity investments | 1.5 | 0.8 | 1.1 | ||||||||
Recognition of previously unrecognized tax benefits | — | (25.4 | ) | — | |||||||
Income tax effect of non-GAAP exclusions | (10.8 | ) | (11.2 | ) | (9.3 | ) | |||||
Non-GAAP net income | $ | 77.2 | $ | 198.7 | $ | 92.7 | |||||
GAAP diluted net income per share | $ | 0.06 | $ | 0.49 | $ | 0.09 | |||||
Non-GAAP diluted net income per share | $ | 0.23 | $ | 0.58 | $ | 0.26 | |||||
Shares used in computing diluted net income per share | 335.1 | 340.8 | 352.7 |
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Cover page.
Entity Registrant Name
JUNIPER NETWORKS, INC.
Amendment Flag
false
Entity Central Index Key
0001043604
Document Type
8-K
Document Period End Date
Apr. 28, 2020
Entity Incorporation, State or Country Code
DE
Entity File Number
001-34501
Entity Tax Identification Number
77-0422528
Entity Address, Address Line One
1133 Innovation Way
Entity Address, City or Town
Sunnyvale,
Entity Address, State or Province
CA
Entity Address, Postal Zip Code
94089
City Area Code
408
Local Phone Number
745-2000
Written Communications
false
Soliciting Material
false
Pre-commencement Tender Offer
false
Pre-commencement Issuer Tender Offer
false
Title of 12(b) Security
Common Stock, par value $0.00001 per share
Trading Symbol
JNPR
Security Exchange Name
NYSE
Entity Emerging Growth Company
false