Juniper Networks has revealed flat year-on-year growth and 17 percent dip quarter-on-quarter growth in its revenue at $998 million in the first quarter of 2020 due to supply constraints related to the COVID-19 pandemic.
Juniper Networks said its revenue from Cloud business increased 17 percent to $262 million.
Juniper Networks’s revenue from Enterprise business increased 5 percent to $360 million in the first quarter.
Juniper Networks’s revenue from Service Provider business fell 14 percent to $376 million during the quarter.
Service Provider Business
Juniper Networks’s Service Provider Business declined 14 percent year-over-year during Q1. This business was impacted by Covid-19 related supply chain challenges. If not for these challenges, service provider business would have experienced a mid to high single digit year-over-year decline.
Juniper Networks’s service provider orders rose 4 percent in Q1 representing the first year-over-year increase since 2017. “We are seeing some modest Covid-19 related benefits within our service provider business,” said Juniper’s CEO Rami Rahim.
Juniper Networks said it’s starting to see improved momentum with several of the US Cable customers as well as tier-2 and tier-3 carriers in international markets. Juniper Networks is also seeing increased carrier adoption of switching and security offering in addition to traditional routing platforms.
Juniper Networks said some of the service provider customers are continuing to face business challenges that may impact their ability to spend in future quarters. Juniper Networks said its service provider business is likely to see a mid-single digit decline in 2020.
Juniper Networks has generated first quarter revenue of $579 million (+7 percent) from Americas, $255 million (–11 percent) from EMEA and $164 million (–5 percent) from Asia Pacific including China.
Switching increased 25 percent to $220 million. Security increased 10 percent to $75 million. Routing, which was the most impacted by supply constraints related to the COVID-19 pandemic, decreased 16 percent to $314 million.
Services business increased 2 percent to $389 million. Software revenue was approximately 11 percent of total revenue and grew 9 percent. The top 10 customers: four from Cloud, five from Service Provider, and one from Enterprise during the first quarter.
“Orders grew 10 percent during the March quarter and improved across each of our core industry verticals. Our financial results would have exceeded the mid-point of our guidance if not for supply challenges we faced resulting from the COVID-19 pandemic,” said Juniper’s CEO Rami Rahim.
“We are executing well despite the challenges created by the COVID-19 pandemic,” said Juniper’s CFO Ken Miller. “We are making progress ramping up our supply chain back to full productivity and continue to effectively manage costs while positioning the business for future growth.”