Juniper Networks(US:JNPR) Zacks Investment Research·2024-01-31 14:21Core Insights - Juniper Networks, Inc. reported disappointing fourth-quarter 2023 results, with both revenue and net income falling short of Zacks Consensus Estimates, primarily due to weak demand in Cloud Ready Data Center and Automated WAN Solutions [1][2] Financial Performance - GAAP net income for Q4 2023 was $124.3 million or 38 cents per share, down from $180.4 million or 55 cents per share year over year [2] - Non-GAAP net income was $196.9 million or 61 cents per share, compared to $213.8 million or 65 cents per share in the prior-year quarter, missing the Zacks Consensus Estimate by 3 cents [2] - For the full year 2023, GAAP net income was $310.2 million or 95 cents per share, down from $471 million or $1.43 per share in 2022, while non-GAAP net income increased to $736.4 million or $2.26 per share from $642.6 million or $1.95 per share [2] Revenue Breakdown - Total revenues for Q4 2023 were $1.36 billion, down from $1.44 billion in the year-ago quarter, missing the Zacks Consensus Estimate of $1.4 billion [3] - Product revenues were $858.6 million, down from $988.3 million year over year, while service revenues increased to $506.2 million from $460.5 million, reflecting a 10% year-over-year growth [3][4] - For the full year 2023, total revenues reached $5.56 billion, up from $5.3 billion in 2022 [3] Vertical Performance - Cloud business revenues declined to $317.3 million from $380.3 million year over year, although it exceeded estimates [4] - Service Provider revenues fell 15% year over year to $400.2 million, but also surpassed estimates [4] - Enterprise revenues grew 8% year over year to $647.3 million, supported by demand for AI-Driven Enterprise solutions and hardware maintenance [4] Customer Solutions and Regional Performance - Automated WAN solutions generated $454.1 million, down 5% year over year, while AI-Driven Enterprise revenues were $321.2 million, up 1% [5] - Cloud-Ready data centers contributed $180.8 million, down 30% year over year [5] - By region, revenues from the Americas decreased to $849.7 million, EMEA revenues fell to $335.8 million, and Asia-Pacific revenues dropped 15.8% to $179.3 million [5] Operational Metrics - Non-GAAP gross margin improved to 60.8% from 58.5% year over year, aided by a favorable software revenue mix and easing supply chain costs [7] - Non-GAAP operating expenses rose to $579.8 million from $571.3 million, leading to a slight decrease in non-GAAP operating margin to 18.3% from 19.1% [7] Cash Flow and Liquidity - In Q4 2023, cash generated from operating activities was $9.1 million, down from $119.6 million in the prior-year quarter, primarily due to delayed federal tax payments [8] - For the full year 2023, operating cash flow was $872.8 million, significantly up from $97.6 million in 2022 [8] - As of December 31, 2023, the company had $1.3 billion in cash and cash equivalents, with long-term debt of $1.61 billion [8]