8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported) October 22, 2015

Juniper Networks, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-34501	770422528
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1133 Innovation Way, Sunnyvale, California	94089
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (408) 745-2000

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ 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))

Item 2.02 Results of Operations and Financial Condition.

On October 22, 2015, Juniper Networks, Inc. (“we”, “us”, “our” or “the Company”) issued a press release in which we announced preliminary financial results for the quarter ended September 30, 2015. The Company also posted on the Investor Relations section of its website (www.juniper.net) prepared remarks with respect to the quarter ended September 30, 2015. Copies of the press release and prepared remarks by the Company are furnished as Exhibits 99.1 and 99.2, respectively, to this report. Information on our website is not, and will not be deemed, a part of this report or incorporated into any other filings the Company makes with the Securities and Exchange Commission.

The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press release issued by Juniper Networks, Inc. on October 22, 2015
99.2	Prepared remarks by Juniper Networks, Inc. dated as of October 22, 2015

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Juniper Networks, Inc.
October 22, 2015	By:	/s/ Brian M. Martin
	Name:	Brian M. Martin
	Title:	Senior Vice President and General Counsel

Exhibit Index

Exhibit No.	Description
99.1	Press release issued by Juniper Networks, Inc. on October 22, 2015
99.2	Prepared remarks by Juniper Networks, Inc. dated as of October 22, 2015

EX-99.1

Exhibit 99.1

Investor Relations:

Ryan Miyasato

Juniper Networks

(408) 936-7497

rmiyasato@juniper.net

Media Relations:

Cindy Ta

Juniper Networks

(408) 936-6131

cta@juniper.net

JUNIPER NETWORKS REPORTS PRELIMINARY THIRD QUARTER 2015 FINANCIAL RESULTS

Company delivers good revenue growth and strong year-over-year earnings expansion

SUNNYVALE, Calif., Oct. 22, 2015 - Juniper Networks (NYSE: JNPR), the industry leader in network innovation, today reported preliminary financial results for the three months ended Sept. 30, 2015 and provided its outlook for the three months ending Dec. 31, 2015.

Net revenues for the third quarter of 2015 were $1,248.6 million, an increase of 11% year-over-year and 2% sequentially.

Juniper’s operating margin for the third quarter of 2015 increased to 20.7% on a GAAP basis, a year-over-year increase of 5.4 points and an increase of 0.8 points sequentially. Non-GAAP operating margin for the third quarter of 2015 increased to 25.5%, an increase of 4.0 points year-over-year and 0.3 points sequentially.

In the third quarter of 2015, Juniper posted GAAP net income of $197.7 million, an increase of 91% year-over-year and 25% sequentially. GAAP net income per diluted share was $0.51, inclusive of a $0.06 benefit from a lower tax rate primarily due to changes in the year-to-date geographic mix of earnings and a nonrecurring tax benefit relating to a change in the tax treatment of stock-based compensation and R&D cost sharing arrangements due to a July 2015 Federal Tax Court decision in the case known as Altera Corp. et al. v. Commissioner. Non-GAAP net income was $221.7 million, an increase of 34% year-over-year and 6% sequentially. Non-GAAP net income for the third quarter of 2015 was $0.57 per diluted share, an increase of $0.21 year-over-year primarily due to the positive impact from higher revenue, reduced share count, and lower operating expenses. The sequential increase of $0.04 was primarily due to higher revenue and an approximate $0.02 impact from the lower tax rate.

The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Preliminary Net Revenues by Market table below.

“We delivered another solid quarter of growth, demonstrating our continued momentum across the business and ability to execute our clear and deliberate strategy,” said Rami Rahim, chief executive officer of Juniper Networks. “We continue to challenge the status quo and bring new product innovations to market that bolster our position as a leader in network innovation. I’m proud of the results our team has yielded and have confidence in our prospects for the future.”

“We once again delivered good revenue and earnings for the quarter, a testament to our focus on our financial performance across key business metrics,” said Robyn Denholm, chief financial and operations officer of Juniper Networks. “We delivered significant year-over-year earnings expansion, maintained our focus on cost control, meaningfully improved our operating margin and continued to return capital to shareholders. I’m pleased with the significant progress our team has made and continue to see growing, evolving and diversifying demand for the solutions we provide.”

Page 1 of 12

Other Financial Highlights

Total cash, cash equivalents, and investments as of Sept. 30, 2015 were $3,247 million, compared to $3,076 million as of June 30, 2015, and $3,321 million as of Sept. 30, 2014.

Juniper’s net cash flow provided by operations for the third quarter of 2015 was $293 million, compared to net cash provided by operations of $263 million in the second quarter of 2015, and $(70) million in the third quarter of 2014.

Days sales outstanding in accounts receivable, or “DSO,” was 42 in the third quarter of 2015, compared to 39 days in the prior quarter, and 49 days in the third quarter of 2014.

Capital expenditures were $71 million and depreciation and amortization of intangible assets expense was $41 million during the third quarter of 2015. Capital expenditures for the quarter increased as we focus on investments to drive long-term productivity and support continued innovation and development of new products.

Juniper’s Board of Directors has declared a quarterly cash dividend of $0.10 per share to be paid on Dec. 22, 2015 to shareholders of record as of the close of business on Dec. 1, 2015.

During the third quarter of 2015, the Company repurchased $50 million of common stock and paid $39 million in dividends. Since the first quarter of 2014, the Company has returned approximately $3.5 billion of capital to shareholders against its commitment to return a total of $4.1 billion by the end of 2016.

Outlook

The Company expects the demand environment across multiple verticals to remain healthy and anticipates the diversification of its revenue to continue.

Juniper Networks estimates that for the quarter ending Dec. 31, 2015:

• Revenues will be approximately $1,290 million, plus or minus $20 million.

• Non-GAAP gross margin will be approximately 64%, plus or minus 0.5%.

• Non-GAAP operating expenses will be $500 million, plus or minus $5 million. The increase in expenses is primarily due to variable costs given higher revenue and for certain strategic go-to-market investments.

• Non-GAAP operating margin will be roughly 25% at the midpoint of revenue guidance.

• Non-GAAP net income per share will range between $0.57 and $0.60 on a diluted basis. This assumes a flat share count from the third quarter and a non-GAAP tax rate of approximately 25.5% for the fourth quarter, and assumes no renewal of the R&D tax credit for 2015.

All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring and other (benefits) charges, impairment charges, professional services related to non-routine stockholder matters, litigation settlement and resolution charges, professional fees and other income and expenses associated with the sale of Junos Pulse, gain or loss on equity investments, retroactive impact of certain tax settlements, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and income tax effect of non-GAAP exclusions. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

Page 2 of 12

Third Quarter Financial Commentary Available Online

A commentary by Robyn Denholm, chief financial and operations officer, reviewing the Company’s third quarter 2015 financial results and fourth quarter 2015 financial outlook will be furnished to the SEC on Form 8-K and published on the Company’s website at http://investor.juniper.net. Analysts and investors are encouraged to review this commentary prior to participating in the conference call webcast.

Conference Call Webcast

Juniper Networks will host a conference call webcast today, Oct. 22, 2015, at 2:00 pm PT, to be broadcast live over the Internet at http://investor.juniper.net. To participate via telephone in the US, the toll free dial-in number is 1-877-407-8033. Outside the US, dial +1-201-689-8033. Please call 10 minutes prior to the scheduled conference call time. The webcast replay will be archived on the Juniper Networks website.

About Juniper Networks

Juniper Networks (NYSE: JNPR) delivers innovation across routing, switching and security. Juniper Networks’ innovations in software, silicon and systems transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on Twitter and Facebook.

Investors and others should note that the Company announces material financial and operational information to its investors using its Investor Relations website, press releases, SEC filings and public conference calls and webcasts. The Company also intends to use the Twitter accounts @JuniperNetworks and @Juniper_IR and the Company’s blogs as a means of disclosing information about the Company and for complying with its disclosure obligations under Regulation FD. The social media channels that the Company intends to use as a means of disclosing information described above may be updated from time to time as listed on the Company’s Investor Relations website.

Juniper Networks and Junos, are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks logo and the Junos logo are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

Safe Harbor

Statements in this release concerning Juniper Networks’ business outlook, economic and market outlook, future financial and operating results, ability to deliver revenue and earnings growth, ability to execute its strategy, innovation pipeline, capital return program, and overall future prospects are forward-looking statements that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including: general economic and political conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending and spending by communication service providers and major customers; the network capacity requirements of communication service providers; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; manufacturing and supply chain constraints; availability of key product components; ability to establish and maintain relationships with distributors, resellers and other partners; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation settlements and resolutions; the potential impact of activities related to the execution of capital return and product rationalization; and other factors listed in Juniper Networks’ most recent report on Form 10-Q filed with the Securities and Exchange Commission. All statements made in this press release are made only as of the date set forth at the beginning of this release. Juniper Networks undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release.

Page 3 of 12

Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the discussion below. The following tables and reconciliations can also be found on our Investor Relations website at http://investor.juniper.net.

Page 4 of 12

Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Operations

(in millions, except per share amounts)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net revenues:
Product	$	925.4		$	809.5		$	2,589.2		$	2,614.7
Service		323.2			316.4			949.0			910.8
Total net revenues		1,248.6			1,125.9			3,538.2			3,525.5
Cost of revenues:
Product		322.6			290.0			923.1			975.9
Service		128.6			121.1			378.9			366.5
Total cost of revenues		451.2			411.1			1,302.0			1,342.4
Gross margin		797.4			714.8			2,236.2			2,183.1
Operating expenses:
Research and development		247.0			253.2			747.3			772.7
Sales and marketing		235.3			249.2			687.9			780.6
General and administrative		57.1			55.0			168.6			190.5
Restructuring and other (benefits) charges		—			(15.0	)		(0.5	)		157.2
Total operating expenses		539.4			542.4			1,603.3			1,901.0
Operating income		258.0			172.4			632.9			282.1
Other (expense) income, net		(8.4	)		(6.8	)		(41.3	)		326.0
Income before income taxes		249.6			165.6			591.6			608.1
Income tax provision		51.9			62.0			155.7			172.8
Net income	$	197.7		$	103.6		$	435.9		$	435.3
Net income per share:
Basic	$	0.52		$	0.23		$	1.11		$	0.93
Diluted	$	0.51		$	0.23		$	1.09		$	0.91
Shares used in computing net income per share:
Basic		382.8			448.4			393.2			468.1
Diluted		389.2			454.8			401.2			477.0
Cash dividends declared per common stock	$	0.10		$	0.10		$	0.30		$	0.10

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Juniper Networks, Inc.

Preliminary Net Revenues by Product and Service

(in millions)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Routing	$	604.4	$	533.2	$	1,711.6	$	1,700.8
Switching		201.4		155.0		558.1		546.8
Security		119.6		121.3		319.5		367.1
Total product		925.4		809.5		2,589.2		2,614.7
Total service		323.2		316.4		949.0		910.8
Total	$	1,248.6	$	1,125.9	$	3,538.2	$	3,525.5

Juniper Networks, Inc.

Preliminary Net Revenues by Geographic Region

(in millions)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Americas	$	712.8	$	678.3	$	2,037.6	$	2,070.8
Europe, Middle East, and Africa		355.0		290.5		975.1		911.0
Asia Pacific		180.8		157.1		525.5		543.7
Total	$	1,248.6	$	1,125.9	$	3,538.2	$	3,525.5

Juniper Networks, Inc.

Preliminary Net Revenues by Market

(in millions)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Service Provider	$	804.3	$	741.5	$	2,356.6	$	2,356.0
Enterprise		444.3		384.4		1,181.6		1,169.5
Total	$	1,248.6	$	1,125.9	$	3,538.2	$	3,525.5

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Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in millions, except percentages and per share amounts)

(unaudited)

		Three Months Ended
		September 30, 2015			June 30, 2015			September 30, 2014
GAAP operating income		$	258.0		$	243.1		$	172.4
GAAP operating margin			20.7	%		19.9	%		15.3	%
Share-based compensation expense	C		56.5			58.9			65.3
Share-based payroll tax expense	C		0.7			2.0			2.3
Amortization of purchased intangible assets	A		5.6			5.6			8.5
Restructuring and other benefits	B		(3.5	)		(1.9	)		(15.0	)
Memory-related, supplier component remediation charge	B		—			—			7.0
Divestiture-related charges	B		—			—			1.0
Other	B		0.5			0.5			—
Non-GAAP operating income		$	317.8		$	308.2		$	241.5
Non-GAAP operating margin			25.5	%		25.2	%		21.5	%
GAAP net income		$	197.7		$	158.0		$	103.6
Share-based compensation expense	C		56.5			58.9			65.3
Share-based payroll tax expense	C		0.7			2.0			2.3
Amortization of purchased intangible assets	A		5.6			5.6			8.5
Restructuring and other benefits	B		(3.5	)		(1.9	)		(15.0	)
Memory-related, supplier component remediation charge	B		—			—			7.0
Divestiture-related charges	B		—			—			1.0
(Gain) loss on equity investments	B		(7.3	)		—			1.6
Gain on legal/contract settlement, net	B		(4.0	)		—			(10.8	)
Income tax effect of non-GAAP exclusions	B		(22.4	)		(10.8	)		0.8
Other	B		(1.6	)		(3.0	)		1.1
Non-GAAP net income		$	221.7		$	208.8		$	165.4
GAAP diluted net income per share		$	0.51		$	0.40		$	0.23
Non-GAAP diluted net income per share	D	$	0.57		$	0.53		$	0.36
Shares used in computing diluted net income per share			389.2			397.2			454.8

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Discussion of Non-GAAP Financial Measures

This press release, including the tables above, includes the following non-GAAP financial measures derived from our Preliminary Condensed Consolidated Statements of Operations: operating income; operating margin; net income; and diluted net income per share. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles, or GAAP. In addition, these measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The non-GAAP financial measures used in the table above should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.

We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures presented above to be helpful in assessing the performance of the continuing operation of our business. By continuing operations we mean the ongoing revenue and expenses of the business, excluding certain items that render comparisons with prior periods or analysis of on-going operating trends more difficult, such as expenses not directly related to the actual cash costs of development, sale, delivery or support of our products and services, or expenses that are reflected in periods unrelated to when the actual amounts were incurred or paid. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. In addition, we have historically reported non-GAAP results to the investment community and believe that continuing to provide non-GAAP measures provides investors with a tool for comparing results over time. In assessing the overall health of our business for the periods covered by the table above and, in particular, in evaluating the financial line items presented in the table above, we have excluded items in the following three general categories, each of which are described below: Acquisition-Related Charges, Other Items, and Share-Based Compensation Related Items. We also provide additional detail below regarding the shares used to calculate our non-GAAP net income per share. Notes identified for line items in the table above correspond to the appropriate note description below. Additionally, with respect to future financial guidance provided on a non-GAAP basis, we have excluded estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring and other (benefits) charges, impairment charges, professional services related to non-routine stockholder matters, litigation settlement and resolution charges, professional fees and other income and expenses associated with the sale of Junos Pulse, gain or loss on equity investments, retroactive impact of certain tax settlements, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions.

Note A: Acquisition-Related Charges. We exclude certain expense items resulting from acquisitions including amortization of purchased intangible assets associated with our acquisitions. The amortization of purchased intangible assets associated with our acquisitions results in our recording expenses in our GAAP financial statements that were already expensed by the acquired company before the acquisition and for which we have not expended cash. Moreover, had we internally developed the products acquired, the amortization of intangible assets, and the expenses of uncompleted research and development would have been expensed in prior periods. Accordingly, we analyze the performance of our operations in each period without regard to such expenses. In addition, acquisitions result in non-continuing operating expenses, which would not otherwise have been incurred by us in the normal course of our business operations. We believe that providing non-GAAP information for acquisition-related expense items in addition to the corresponding GAAP information allows the users of our financial statements to better review and understand the historic and current results of our continuing operations, and also facilitates comparisons to less acquisitive peer companies.

Note B: Other Items. We exclude certain other items that are the result of either unique or unplanned events including the following, when applicable: (i) restructuring and other (benefits) charges; (ii) impairment charges; (iii) professional fees and other income and expenses associated with the sale of Junos Pulse; (iv) gain or loss on equity investments; (v) gain or loss on legal settlement, net of related transaction costs; (vi) gain or loss on contract settlement; (vii) memory-related, supplier component remediation charge; (viii) valuation allowance on deferred tax assets; (ix) significant effects of tax legislation and judicial or administrative interpretation of tax regulations; and (x) the income tax effect on our financial statements of excluding items related to our non-GAAP financial measures. It is difficult to estimate the amount or timing of these items in advance. Restructuring and impairment charges result from events, which arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Although these events are reflected in our GAAP financials, these unique transactions may limit the comparability of our on-going operations with prior and future periods. In the case of legal and contract settlements, these gains or losses are recorded in the period in which the matter is concluded or resolved even though the subject matter of the underlying dispute may relate to multiple or different periods. As such, we believe that these gains or losses do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. Similarly, the significant effects of tax legislation are unique events that occur in periods that are generally unrelated to the level of business activity to which such legislation applies. These expenses do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. Whether we realize gains or losses on equity investments is based primarily on the performance and market value of those independent companies. Accordingly, we believe that these gains and losses do not reflect the underlying performance of our continuing operations. We also believe providing financial information with and without the income tax effect of excluding items related to our non-GAAP financial measures provide our management and users of the financial statements with better clarity regarding the on-going performance and future liquidity of our business. Because of these factors, we assess our operating performance with these amounts both included and excluded, and by providing this information, we believe the users of our financial statements are better able to understand the financial results of what we consider our continuing operations.

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Note C: Share-Based Compensation Related Items. We provide non-GAAP information relative to our expense for share-based compensation and related payroll tax. We began to include share-based compensation expense in our GAAP financial measures in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation - Stock Compensation (“FASB ASC Topic 718”), in January 2006. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, which affect the calculations of share-based compensation, we believe that the exclusion of share-based compensation allows for more accurate comparisons of our operating results to our peer companies. Further, we believe that excluding share-based compensation expense allows for a more accurate comparison of our financial results to previous periods during which our equity-based awards were not required to be reflected in our income statement. Share-based compensation is very different from other forms of compensation. A cash salary or bonus has a fixed and unvarying cash cost. For example, the expense associated with a $10,000 bonus is equal to exactly $10,000 in cash regardless of when it is awarded and who it is awarded by. In contrast, the expense associated with an award of an option for 1,000 shares of stock is unrelated to the amount of compensation ultimately received by the employee; and the cost to the company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time and that does not reflect any cash expenditure by the company because no cash is expended. Furthermore, the expense associated with granting an employee an option is spread over multiple years unlike other compensation expenses which are more proximate to the time of award or payment. For example, we may be recognizing expense in a year where the stock option is significantly underwater and is not going to be exercised or generate any compensation for the employee. The expense associated with an award of an option for 1,000 shares of stock by us in one quarter may have a very different expense than an award of an identical number of shares in a different quarter. Finally, the expense recognized by us for such an option may be very different than the expense to other companies for awarding a comparable option, which makes it difficult to assess our operating performance relative to our competitors. Similar to share-based compensation, payroll tax on stock option exercises is dependent on our stock price and the timing and exercise by employees of our share-based compensation, over which our management has little control, and as such does not correlate to the operation of our business. Because of these unique characteristics of share-based compensation and the related payroll tax, management excludes these expenses when analyzing the organization’s business performance. We also believe that presentation of such non-GAAP information is important to enable readers of our financial statements to compare current period results with periods prior to the adoption of FASB ASC Topic 718.

Note D: Non-GAAP Net Income Per Share Items. We provide diluted non-GAAP net income per share. The diluted non-GAAP income per share includes additional dilution from potential issuance of common stock, except when such issuances would be anti-dilutive.

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Juniper Networks, Inc.

Preliminary Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

	September 30, 2015		December 31, 2014*
ASSETS
Current assets:
Cash and cash equivalents	$	1,453.5	$	1,639.6
Short-term investments		529.9		332.2
Accounts receivable, net of allowances		577.5		598.9
Deferred tax assets, net		198.4		147.0
Prepaid expenses and other current assets		138.8		239.9
Total current assets		2,898.1		2,957.6
Property and equipment, net		959.9		904.3
Long-term investments		1,263.6		1,133.1
Restricted cash and investments		33.9		46.0
Purchased intangible assets, net		39.2		62.4
Goodwill		2,981.3		2,981.5
Other long-term assets		329.9		303.9
Total assets	$	8,505.9	$	8,388.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	299.9	$	—
Accounts payable		209.1		234.6
Accrued compensation		193.7		225.0
Deferred revenue		814.4		780.8
Other accrued liabilities		217.8		273.0
Total current liabilities		1,734.9		1,513.4
Long-term debt		1,648.7		1,349.0
Long-term deferred revenue		310.5		294.9
Long-term income taxes payable		185.0		177.5
Other long-term liabilities		198.7		134.9
Total liabilities		4,077.8		3,469.7
Total stockholders’ equity		4,428.1		4,919.1
Total liabilities and stockholders’ equity	$	8,505.9	$	8,388.8

* Certain amounts in the prior year Condensed Consolidated Financial Statements contained in this press release have been reclassified to conform to the current year presentation.

Page 10 of 12

Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

	Nine Months Ended September 30,
	2015			2014*
Cash flows from operating activities:
Net income	$	435.9		$	435.3
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense		161.3			185.4
Depreciation, amortization, and accretion		131.5			141.9
Restructuring and other (benefits) charges		(4.0	)		179.4
Deferred income taxes		10.0			(85.4	)
Gain on investments, net		(6.8	)		(165.1	)
Gain on legal settlement, net		—			(121.1	)
Excess tax benefits from share-based compensation		(7.4	)		(8.8	)
Loss on disposal of fixed assets		0.4			1.9
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, net		(15.7	)		(33.2	)
Prepaid expenses and other assets		8.8			(19.9	)
Accounts payable		(21.8	)		49.9
Accrued compensation		(29.0	)		(78.3	)
Income taxes payable		108.2			86.1
Other accrued liabilities		(45.0	)		(130.5	)
Deferred revenue		49.1			40.9
Net cash provided by operating activities		775.5			478.5
Cash flows from investing activities:
Purchases of property and equipment		(154.9	)		(141.0	)
Purchases of available-for-sale investments		(1,147.6	)		(1,970.5	)
Proceeds from sales of available-for-sale investments		625.9			1,918.7
Proceeds from maturities of available-for-sale investments		197.4			339.0
Purchases of trading investments		(3.8	)		(3.5	)
Proceeds from sales of privately-held investments		10.3			2.5
Purchases of privately-held investments		(5.4	)		(12.3	)
Payments for business acquisitions, net of cash and cash equivalents acquired		(3.5	)		(27.1	)
Changes in restricted cash		11.6			45.0
Net cash (used in) provided by investing activities		(470.0	)		150.8
Cash flows from financing activities:
Proceeds from issuance of common stock		97.0			157.6
Purchases and retirement of common stock		(1,057.6	)		(1,761.0	)
Issuance of long-term debt, net		594.6			346.5
Payment for capital lease obligation		0.4			(0.4	)
Customer financing arrangements		—			0.8
Excess tax benefits from share-based compensation		7.4			8.8
Payment of cash dividends		(118.0	)		(43.8	)
Net cash used in financing activities		(476.2	)		(1,291.5	)
Effect of foreign currency exchange rates on cash and cash equivalents		(15.4	)		(5.9	)
Net decrease in cash and cash equivalents		(186.1	)		(668.1	)
Cash and cash equivalents at beginning of period		1,639.6			2,284.0
Cash and cash equivalents at end of period	$	1,453.5		$	1,615.9

* Certain amounts in the prior year Condensed Consolidated Financial Statements contained in this press release have been reclassified to conform to the current year presentation.

Page 11 of 12

Juniper Networks, Inc.

Cash, Cash Equivalents, and Investments

(in millions)

(unaudited)

	September 30, 2015		December 31, 2014
Cash and cash equivalents	$	1,453.5	$	1,639.6
Short-term investments		529.9		332.2
Long-term investments		1,263.6		1,133.1
Total	$	3,247.0	$	3,104.9

Page 12 of 12

EX-99.2

Exhibit 99.2

Juniper Networks, Inc.

1133 Innovation Way

Sunnyvale, CA 94089

October 22, 2015

CFO Commentary on Third Quarter 2015 Financial Results

Related Information

The following commentary is provided by management and should be referenced in conjunction with Juniper Networks’ third quarter 2015 financial results press release available on its Investor Relations website at http://investor.juniper.net. These remarks represent management’s current views of the Company’s financial and operational performance and outlook and are provided to give investors and analysts further insight into its performance in advance of the earnings call webcast.

Q3 2015 Financial Results

GAAP

(in millions, except per share amounts and percentages)	Q3’15		Q2’15		Q3’14		Q/Q Change		Y/Y Change
Revenue	$	1,248.6	$	1,222.2	$	1,125.9		2 %		11 %
Product		925.4		899.7		809.5		3 %		14 %
Service		323.2		322.5		316.4		— %		2 %
Gross margin %		63.9%		63.9%		63.5%		—pts		0.4pts
Research and development		247.0		251.6		253.2		(2)%		(2)%
Sales and marketing		235.3		232.4		249.2		1 %		(6)%
General and administrative		57.1		56.3		55.0		1 %		4 %
Restructuring and other benefits		—		(1.9)		(15.0)		N/M		N/M
Total operating expenses		539.4		538.4		542.4		— %		(1)%
Operating margin %		20.7%		19.9%		15.3%		0.8pts		5.4pts
Net income	$	197.7	$	158.0	$	103.6		25 %		91 %
Diluted EPS(*)	$	0.51	$	0.40	$	0.23		28 %		122 %

N/M - Not meaningful

^(*) GAAP diluted EPS for the third quarter of 2015 includes a $0.06 benefit from a lower tax rate primarily due to changes in the year-to-date geographic mix of earnings and a nonrecurring tax benefit of approximately $18 million relating to a change in the tax treatment of stock-based compensation and research and development cost sharing arrangements due to a July 2015 Federal Tax Court decision in the case known as Altera Corp. et al. v. Commissioner.

1

Non-GAAP

(in millions, except per share amounts   and percentages)	Q4’15 Guidance	Q3’15		Q2’15		Q3’14		Q/Q Change		Y/Y Change
Revenue(*)	$1,290 +/- $20	$	1,248.6	$	1,222.2	$	1,095.3		2  %		14  %
Product(*)			925.4		899.7		794.1		3  %		17  %
Service(*)			323.2		322.5		301.2		—  %		7  %
Gross margin %	64% +/- 0.5%		64.3%		64.8%		65.2%		(0.5)pts		(0.9 )pts
Research and development			215.8		218.4		215.1		(1 )%		—  %
Sales and marketing			221.3		217.6		231.5		2  %		(4 )%
General and administrative			48.3		47.7		46.1		1  %		5  %
Total operating expenses	$500 +/- $5		485.4		483.7		492.7		—  %		(1 )%
Operating margin %	~25% (mdpt. of rev.)		25.5%		25.2%		21.5%		0.3pts		4.0pts
Net income		$	221.7	$	208.8	$	165.4		6  %		34  %
Diluted EPS	$0.57 - $0.60	$	0.57	$	0.53	$	0.36		8  %		58  %

^(*) Revenue numbers are GAAP, other than for Q3’14, which have been normalized for the sale of Junos Pulse.

The following CFO Commentary contains non-GAAP financial measures and the reconciliations to GAAP can be found at the end of this document. Also, prior year revenue has been normalized for the sale of Junos Pulse.

Overview

Our third quarter 2015 results reflected good year-over-year and sequential revenue and earnings growth. We also demonstrated the strength of the diversity of our revenue across multiple verticals, technologies, and geographies. Specifically, we saw year-over-year and sequential revenue growth in both EMEA and APAC as well as solid growth in Enterprise across all geographies. We are pleased with the ongoing year-over-year growth and healthy underlying demand from Cloud Providers, however, as we have noted this vertical can be lumpy due to the timing of deployments.

As a reminder, our second quarter 2015 results for routing in the Americas were positively impacted by the recognition of deferred revenue for the delivery of product and feature commitments.

In reviewing our top 10 customers, five were Telcos, three of which were outside of the U.S., four were Cloud or Cable Providers and one was an Enterprise customer. We expect this diversification trend to continue, demonstrating the increased relevance of our product portfolio across multiple verticals and geographies.

Our underlying demand metrics were healthy this quarter, with a year-over-year and sequential increase in product deferred revenue and a product book-to-bill greater than one.

For the quarter, we delivered strong year-over-year non-GAAP operating margin and earnings per share expansion, which reflects our solid execution, focus on revenue growth, effective management of our cost structure, and significant reduction in share count. We are pleased that we delivered results in-line with our long-term model of 39% non-GAAP operating expense as a percentage of revenue.

In the quarter, we had strong cash flow from operations of $293 million as a direct result of our improved operating margin. Capital expenditures for the quarter also increased to $71 million as we focus on investments to drive long-term productivity and support continued innovation and development of new products. We repurchased $50 million of shares and paid $39 million in dividends. Since the first quarter of 2014, inclusive of share repurchases and dividends, we have returned approximately $3.5 billion of capital to shareholders against our commitment to return $4.1 billion by the end of 2016.

2

Revenue

Product & Service

• Routing product revenue: $605 million, up 13% year-over-year and essentially flat from the prior quarter. The year-over-year increase was due to growth from Telecom in EMEA, continued momentum from Cloud Providers, and strength in Enterprise across all geographies. Sequentially, the increase from Telecom and National Government was offset by declines from Cloud and Cable Providers.

• Switching product revenue: $201 million, an increase of 30% year-over-year. This strong growth is due to data center build-outs from Enterprise, Cloud Providers, and Telecom. Quarter-over-quarter, switching product revenue increased 6% primarily due to data center build-outs in Enterprise.

• Security product revenue: $120 million, up 13% year-over-year and 12% sequentially. The year-over-year increase was primarily due to growth in Enterprise, Cloud Providers, and Telecom. The quarter-over-quarter increase resulted from growth in Telecom and Cloud Providers.

SRX Platform and Security Software was up 27% year-over-year and 17% quarter-over-quarter, while our Screen OS and Other Legacy products were $8 million, down 55% year-over-year and 30% from the prior quarter.

Although we have reported two quarters of year-over-year growth in our security business, the timing of deployments can fluctuate. We plan to continue executing against our strategy and we expect this business to grow sustainably in 2016.

• Service revenue: $323 million, up 7% year-over-year and flat quarter-over-quarter. The year-over-year increase in service revenue was primarily driven by new service contracts and strong contract renewals. Sequentially service revenue was flat due to the timing of deployments and certain contract renewals.

Geography

• Americas: $713 million, up 8% year-over-year and down 3% quarter-over-quarter. The increase from a year ago was primarily due to strength in Enterprise. Service Provider was flat year-over-year as increases from Cloud Providers were offset by declines in Cable and Telecom. The quarter-over-quarter decline was due to Cloud and Cable Providers, partially offset by growth from the Enterprise market and a modest improvement from Telecom.

3

• EMEA: $355 million, up 27% year-over-year and 12% from the prior quarter. The strong growth was due to Telecom in the Middle East and Germany as well as strength from the Enterprise market.

• APAC: $181 million, up 19% year-over-year and 6% quarter-over-quarter. The year-over-year increase was primarily due to growth from Japan and ASEAN. Sequentially, we saw growth in the Enterprise market in China and Japan.

Market

• Service Provider: $805 million, up 10% year-over-year and down 4% from the prior quarter. The year-over-year increase was primarily due to growth from Telecom in EMEA and APAC as well as an increase from Cloud Providers. The sequential decline was from Cloud Providers, due to the timing of deployments, as well as Cable Providers, partially offset by an increase in Telecom.

• Enterprise: $444 million, up 23% from the prior year and 15% from last quarter due to strength across all technologies and all three geographies. Overall, we saw year-over-year and sequential growth in both the data center and campus and branch.

Gross Margins

• Non-GAAP gross margins: 64.3%, compared to 65.2% from the prior year and 64.8% from last quarter.

• Non-GAAP product gross margins: 65.4%, down seven tenths of a point from both a year ago and from last quarter due to geographic and product mix. While the pricing environment is consistently competitive, we remain focused on delivering innovation and continued improvements to our cost structure.

• Non-GAAP service gross margins: 61.2%, down 1.8 points from a year ago and one tenth of a point quarter-over-quarter. The year-over-year decrease was due to higher project delivery costs partially offset by higher revenue.

Operating Expenses

• Non-GAAP operating expenses: $485 million, a reduction of $7 million, or 1% year-over-year. We are pleased with our continued focus on managing our operating expenses. As reported for the quarter, operating expenses were 39% of revenue, down 4.9 points year-over-year and seven tenths of a point quarter-over-quarter, demonstrating execution against our annualized long-term model of 39%.

Operating Margins

• Non-GAAP operating margins: We are pleased to report that our operating margins were 25.5%, an improvement of 4.0 points year-over-year and an increase of three tenths of a point sequentially. This reflects our continued focus on top line growth and cost management and demonstrates execution against our annualized long-term model of 25%.

Tax Rate

• Non-GAAP tax rate: 25.1%, down from 27.4% last quarter, primarily due to the year-to-date change in the geographic mix of earnings.

Diluted Earnings Per Share

• Non-GAAP diluted earnings per share: $0.57, increased $0.21 year-over-year primarily due to the positive impact from higher revenue, reduced share count, and lower operating expenses. The sequential increase of $0.04 was primarily due to higher revenue and an approximate $0.02 impact from the lower tax rate.

4

Balance Sheet, Cash Flow, Capital Return, and Other Financial Metrics

(in millions, except product book-to-bill, days sales outstanding     (“DSO”), and headcount)	Q3’15		Q2’15		Q1’15		Q4’14		Q3’14
Cash(1)	$	3,247.0	$	3,076.3	$	3,450.6	$	3,104.9	$	3,321.0
Debt		1,948.6		1,948.6		1,948.6		1,349.0		1,348.9
Net cash and investments(2)		1,298.4		1,127.7		1,502.0		1,755.9		1,972.1
Operating cash flow(3)		293.0		263.2		219.3		284.9		(69.7)
Capital expenditures		71.1		39.6		44.2		51.9		42.4
Depreciation and amortization		40.8		39.9		46.0		42.5		44.3
Share repurchases		50.0		600.0		400.0		500.0		850.0
Dividends	$	38.5	$	38.7	$	40.8	$	42.2	$	43.8
Diluted shares		389.2		397.2		414.2		432.4		454.8
Product book-to-bill		>1		>1		>1		>1		1
DSO		42		39		43		49		49
Headcount		8,934		8,815		8,772		8,806		9,059

⁽¹⁾ Cash includes cash, cash equivalents, and investments.

⁽²⁾ Net cash and investments includes, cash, cash equivalents, and investments, net of debt.

⁽³⁾ Certain prior period amounts have been reclassified to conform to the current period presentation.

Balance Sheet

• Cash: $3.2 billion, with 11% held onshore and up from the prior quarter as a result of our strong cash flow generation.

• Debt: $1.9 billion. We continue to maintain investment grade credit ratings of BBB/Baa2 by S&P and Moody’s. We believe that our debt also has well staggered maturities and aligns with our focus on an optimal capital structure.

• Net cash and investments: $1.3 billion. An increase of $171 million quarter-over-quarter primarily due to cash flow from operations of $293 million partially offset by outflows for capital expenditures of $71 million and share repurchases and dividend payments totaling $89 million.

Cash Flow

• Cash flow from operations: Cash flow from operations was $293 million, up from $263 million from the prior quarter, consistent with the growth in net income.

Capital Return

• We continue to deliver on our commitment to shareholders and execute on our capital return plan.

• We repurchased $50 million of shares in the quarter and paid $39 million in dividends.

• Diluted shares declined 14% year-over-year.

• Since the first quarter of 2014, inclusive of share repurchases and dividends, we have returned approximately $3.5 billion of capital to shareholders against our commitment to return $4.1 billion by end of 2016.

• A quarterly dividend of $0.10 per share was paid in September with the intent to grow it over time.

5

Demand metrics

• Product book-to-bill was greater than 1.

• Total deferred revenue was $1,125 million, up $51 million year-over-year and $21 million quarter-over-quarter.

• Product deferred revenue was $241 million, an increase of $19 million year-over-year and $36 million from the prior quarter. Sequentially, the increase was primarily due to higher undelivered product and feature commitments.

DSO

• DSO: 42 days, compared to 39 days from the prior quarter, an increase of 3 days. DSO is in-line with our expectations.

Headcount

• 8,934, a decline of 125 employees or 1% year-over-year.

Outlook

These metrics are provided on a non-GAAP basis, except for revenue and share count.

We expect the demand environment across multiple verticals to remain healthy and anticipate the diversification of our revenue to continue.

Juniper Networks estimates that for the quarter ending December 31, 2015:

• Revenues will be approximately $1,290 million plus or minus $20 million.

• Non-GAAP gross margin will be approximately 64%, plus or minus 0.5%.

• Non-GAAP operating expenses will be $500 million, plus or minus $5 million. The increase in expenses is primarily due to variable costs given higher revenue and for certain strategic go-to-market investments.

• Non-GAAP operating margin will be approximately 25% at the midpoint of revenue guidance.

• Non-GAAP net income per share will range between $0.57 and $0.60 on a diluted basis. This assumes a flat share count from the third quarter and a non-GAAP tax rate of approximately 25.5% for the fourth quarter, assuming no renewal of the R&D tax credit for 2015.

6

Forward-Looking Statements

Statements in this CFO Commentary and related conference call concerning Juniper Networks’ business, economic and market outlook, revenue diversification, growth of our security business, future financial and operating results, ability to deliver revenue and earnings growth, improvements to our cost structure, innovation pipeline, capital structure, capital return program, and overall future prospects are forward looking statements that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including: general economic and political conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending and spending by communication service providers and major customers; the network capacity requirements of communication service providers; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; manufacturing and supply chain constraints; availability of key product components; ability to establish and maintain relationships with distributors, resellers and other partners; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation settlements and resolutions; the potential impact of activities related to the execution of capital return and product rationalization; and other factors listed in Juniper Networks’ most recent report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”). All statements contained in this CFO Commentary and related conference call are made only as of the date set forth at the beginning of this document. Juniper Networks undertakes no obligation to update the information contained in this document or the related conference call in the event facts or circumstances subsequently change after the date of this document.

Use of Non-GAAP Financial Measures

This CFO Commentary contains references to the following non-GAAP financial measures: revenue; product revenue; service revenue; gross margin; product gross margin; service gross margin; product gross margin as a percentage of product revenue; service gross margin as a percentage of service revenue; gross margin as a percentage of revenue; research and development expense; sales and marketing expense; general and administrative expense; operating expense; operating expense as a percentage of revenue; operating income; operating margin; income tax rate; net income; and diluted net income per share. For important commentary on why Juniper Networks considers non-GAAP information a useful view of the company’s financial results, please see the press release furnished with our Form 8-K filed today with the SEC. With respect to future financial guidance provided on a non-GAAP basis, we have excluded estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring and other (benefits) charges, impairment charges, professional services related to non-routine stockholder matters, litigation settlement and resolution charges, professional fees and other income and expenses associated with the sale of Junos Pulse, gain or loss on equity investments, retroactive impact of certain tax settlements, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles or GAAP. In addition, these measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The non-GAAP financial measures used in this CFO Commentary should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis due to the high variability and low visibility with respect to the charges which are excluded from these non-GAAP measures.

7

Juniper Networks, Inc.

Supplemental Data

(in millions)

(unaudited)

Deferred Revenue

	As of
	September 30, 2015		December 31, 2014
Deferred product revenue:
Undelivered product commitments and other product deferrals	$	221.7	$	180.3
Distributor inventory and other sell-through items		63.1		103.7
Deferred gross product revenue		284.8		284.0
Deferred cost of product revenue		(43.7)		(58.4)
Deferred product revenue, net		241.1		225.6
Deferred service revenue		883.8		850.1
Total	$	1,124.9	$	1,075.7
Reported as:
Current	$	814.4	$	780.8
Long-term		310.5		294.9
Total	$	1,124.9	$	1,075.7

Security Products: Quarterly Revenue Trend

	Q1’14(*)		Q2’14(*)		Q3’14(*)		Q4’14(*)		Q1’15		Q2’15		Q3’15
SRX Platform and Security Software	$	91.3	$	78.0	$	87.6	$	81.4	$	81.1	$	95.4	$	111.4
Screen OS and Other Legacy		25.3		17.7		18.3		15.1		11.7		11.7		8.2
Junos Pulse		17.6		15.9		15.4		—		—		—		—
Total product revenue	$	134.2	$	111.6	$	121.3	$	96.5	$	92.8	$	107.1	$	119.6

^(*) Certain prior period amounts have been reclassified to conform to the current period presentation.

8

Juniper Networks, Inc.

GAAP to Non-GAAP Reconciliations

(in millions, except percentages and per share amounts)

(unaudited)

Revenue by Product & Service Ex-Junos Pulse

Revenue, As Reported
	Q1’14		Q2’14		Q3’14		Q4’14		Q1’15		Q2’15		Q3’15		Q/Q			Y/Y
Routing	$	549.8	$	617.8	$	533.2	$	523.1	$	504.8	$	602.4	$	604.4	$	2.0	—%	$	71.2	13 %
Switching		192.0		199.8		155.0		174.4		166.5		190.2		201.4		11.2	6%		46.4	30 %
Security		134.2		111.6		121.3		96.5		92.8		107.1		119.6		12.5	12%		(1.7)	(1)%
Product		876.0		929.2		809.5		794.0		764.1		899.7		925.4		25.7	3%		115.9	14 %
Service		294.1		300.3		316.4		307.6		303.3		322.5		323.2		0.7	—%		6.8	2 %
Total	$	1,170.1	$	1,229.5	$	1,125.9	$	1,101.6	$	1,067.4	$	1,222.2	$	1,248.6	$	26.4	2%	$	122.7	11 %
Revenue, Ex-Junos Pulse
	Q1’14		Q2’14		Q3’14		Q4’14		Q1’15		Q2’15		Q3’15		Q/Q			Y/Y
Routing	$	549.8	$	617.8	$	533.2	$	523.1	$	504.8	$	602.4	$	604.4	$	2.0	—%	$	71.2	13 %
Switching		192.0		199.8		155.0		174.4		166.5		190.2		201.4		11.2	6%		46.4	30 %
Security		116.6		95.7		105.9		96.5		92.8		107.1		119.6		12.5	12%		13.7	13 %
Product		858.4		913.3		794.1		794.0		764.1		899.7		925.4		25.7	3%		131.3	17 %
Service		278.7		284.8		301.2		307.6		303.3		322.5		323.2		0.7	—%		22.0	7 %
Total	$	1,137.1	$	1,198.1	$	1,095.3	$	1,101.6	$	1,067.4	$	1,222.2	$	1,248.6	$	26.4	2%	$	153.3	14 %

Revenue by Geography Ex-Junos Pulse

Revenue, As Reported
	Q1’14		Q2’14		Q3’14		Q4’14		Q1’15		Q2’15		Q3’15		Q/Q			Y/Y
Americas	$	681.5	$	711.0	$	678.3	$	559.5	$	589.0	$	735.8	$	712.8	$	(23.0)	(3)%	$	34.5	5%
EMEA		295.7		324.8		290.5		352.3		303.8		316.3		355.0		38.7	12 %		64.5	22%
APAC		192.9		193.7		157.1		189.8		174.6		170.1		180.8		10.7	6 %		23.7	15%
Total	$	1,170.1	$	1,229.5	$	1,125.9	$	1,101.6	$	1,067.4	$	1,222.2	$	1,248.6	$	26.4	2 %	$	122.7	11%
Revenue, Ex-Junos Pulse
	Q1’14		Q2’14		Q3’14		Q4’14		Q1’15		Q2’15		Q3’15		Q/Q			Y/Y
Americas	$	662.7	$	693.9	$	662.2	$	559.5	$	589.0	$	735.8	$	712.8	$	(23.0)	(3)%	$	50.6	8%
EMEA		286.7		315.3		280.6		352.3		303.8		316.3		355.0		38.7	12 %		74.4	27%
APAC		187.7		188.9		152.5		189.8		174.6		170.1		180.8		10.7	6 %		28.3	19%
Total	$	1,137.1	$	1,198.1	$	1,095.3	$	1,101.6	$	1,067.4	$	1,222.2	$	1,248.6	$	26.4	2 %	$	153.3	14%

Revenue by Market Ex-Junos Pulse

Revenue, As Reported
	Q1’14		Q2’14		Q3’14		Q4’14		Q1’15		Q2’15		Q3’15		Q/Q			Y/Y
SP	$	782.7	$	831.8	$	741.5	$	744.4	$	717.0	$	835.3	$	804.3	$	(31.0)	(4)%	$	62.8	8%
Enterprise		387.4		397.7		384.4		357.2		350.4		386.9		444.3		57.4	15 %		59.9	16%
Total	$	1,170.1	$	1,229.5	$	1,125.9	$	1,101.6	$	1,067.4	$	1,222.2	$	1,248.6	$	26.4	2 %	$	122.7	11%
Revenue, Ex-Junos Pulse
	Q1’14		Q2’14		Q3’14		Q4’14		Q1’15		Q2’15		Q3’15		Q/Q			Y/Y
SP	$	777.4	$	827.5	$	733.8	$	744.4	$	717.0	$	835.3	$	804.3	$	(31.0)	(4)%	$	70.5	10%
Enterprise		359.7		370.6		361.5		357.2		350.4		386.9		444.3		57.4	15 %		82.8	23%
Total	$	1,137.1	$	1,198.1	$	1,095.3	$	1,101.6	$	1,067.4	$	1,222.2	$	1,248.6	$	26.4	2 %	$	153.3	14%

9

Juniper Networks, Inc.

GAAP to Non-GAAP Reconciliations

(in millions, except percentages and per share amounts)

(unaudited)

	Q3’15		Q2’15		Q3’14
GAAP gross margin - Product	$	602.8	$	588.0	$	519.5
GAAP product gross margin % of product revenue		65.1%		65.4%		64.2%
Share-based compensation expense		1.3		1.5		1.3
Share-based payroll tax expense		—		0.1		—
Amortization of purchased intangible assets		4.7		4.7		7.1
Restructuring and other benefits		(3.5)		—		—
Memory-related, supplier component remediation charge		—		—		7.0
Non-GAAP gross margin - Product	$	605.3	$	594.3	$	534.9
Non-GAAP product gross margin % of product revenue		65.4%		66.1%		66.1%
GAAP gross margin - Service	$	194.6	$	193.5	$	195.3
GAAP service gross margin % of service revenue		60.2%		60.0%		61.7%
Share-based compensation expense		3.2		3.8		3.6
Share-based payroll tax expense		0.1		0.3		0.4
Non-GAAP gross margin - Service	$	197.9	$	197.6	$	199.3
Non-GAAP service gross margin % of service revenue		61.2%		61.3%		63.0%
GAAP gross margin	$	797.4	$	781.5	$	714.8
GAAP gross margin % of revenue		63.9%		63.9%		63.5%
Share-based compensation expense		4.5		5.3		4.9
Share-based payroll tax expense		0.1		0.4		0.4
Amortization of purchased intangible assets		4.7		4.7		7.1
Restructuring and other benefits		(3.5)		—		—
Memory-related, supplier component remediation charge		—		—		7.0
Non-GAAP gross margin	$	803.2	$	791.9	$	734.2
Non-GAAP gross margin % of revenue		64.3%		64.8%		65.2%
GAAP research and development expense	$	247.0	$	251.6	$	253.2
Share-based compensation expense		(31.0)		(32.5)		(37.1)
Share-based payroll tax expense		(0.2)		(0.7)		(1.0)
Non-GAAP research and development expense	$	215.8	$	218.4	$	215.1
GAAP sales and marketing expense	$	235.3	$	232.4	$	249.2
Share-based compensation expense		(13.0)		(13.4)		(15.9)
Share-based payroll tax expense		(0.3)		(0.8)		(0.7)
Amortization of purchased intangible assets		(0.7)		(0.6)		(1.1)
Non-GAAP sales and marketing expense	$	221.3	$	217.6	$	231.5
GAAP general and administrative expense	$	57.1	$	56.3	$	55.0
Share-based compensation expense		(8.0)		(7.7)		(7.4)
Share-based payroll tax expense		(0.1)		(0.1)		(0.2)
Amortization of purchased intangible assets		(0.2)		(0.3)		(0.3)
Divestiture-related charges		—		—		(1.0)
Other		(0.5)		(0.5)		—
Non-GAAP general and administrative expense	$	48.3	$	47.7	$	46.1

10

Juniper Networks, Inc.

GAAP to Non-GAAP Reconciliations

(in millions, except percentages and per share amounts)

(unaudited)

	Q3’15		Q2’15		Q3’14
GAAP operating expenses	$	539.4	$	538.4	$	542.4
GAAP operating expenses % of revenue		43.2%		44.1%		48.2%
Share-based compensation expense		(52.0)		(53.6)		(60.4)
Share-based payroll tax expense		(0.6)		(1.6)		(1.9)
Amortization of purchased intangible assets		(0.9)		(0.9)		(1.4)
Restructuring and other benefits		—		1.9		15.0
Divestiture-related charges		—		—		(1.0)
Other		(0.5)		(0.5)		—
Non-GAAP operating expenses	$	485.4	$	483.7	$	492.7
Non-GAAP operating expenses % of revenue		38.9%		39.6%		43.8%
GAAP operating income	$	258.0	$	243.1	$	172.4
GAAP operating margin		20.7%		19.9%		15.3%
Share-based compensation expense		56.5		58.9		65.3
Share-based payroll tax expense		0.7		2.0		2.3
Amortization of purchased intangible assets		5.6		5.6		8.5
Restructuring and other benefits		(3.5)		(1.9)		(15.0)
Memory-related, supplier component remediation charge		—		—		7.0
Divestiture-related charges		—		—		1.0
Other		0.5		0.5		—
Non-GAAP operating income	$	317.8	$	308.2	$	241.5
Non-GAAP operating margin		25.5%		25.2%		21.5%
GAAP income tax provision	$	51.9	$	68.0	$	62.0
GAAP income tax rate		20.8%		30.1%		37.4%
Income tax effect of non-GAAP exclusions		22.4		10.8		(0.8)
Non-GAAP provision for income tax	$	74.3	$	78.8	$	61.2
Non-GAAP income tax rate		25.1%		27.4%		27.0%
GAAP net income	$	197.7	$	158.0	$	103.6
Share-based compensation expense		56.5		58.9		65.3
Share-based payroll tax expense		0.7		2.0		2.3
Amortization of purchased intangible assets		5.6		5.6		8.5
Restructuring and other benefits		(3.5)		(1.9)		(15.0)
Memory-related, supplier component remediation charge		—		—		7.0
Divestiture-related charges		—		—		1.0
(Gain) loss on equity investments		(7.3)		—		1.6
Gain on legal/contract settlement, net		(4.0)		—		(10.8)
Income tax effect of non-GAAP exclusions		(22.4)		(10.8)		0.8
Other		(1.6)		(3.0)		1.1
Non-GAAP net income	$	221.7	$	208.8	$	165.4
GAAP diluted net income per share	$	0.51	$	0.40	$	0.23
Non-GAAP diluted net income per share	$	0.57	$	0.53	$	0.36
Shares used in computing diluted net income per share		389.2		397.2		454.8

11