Juniper Networks said its revenue dropped 4 percent to $1.133 billion during the third quarter of 2019.
Juniper Networks generated Q3 revenue of $453 million (–17 percent) from Service Provider business, $408 million (+8 percent) from Enterprise business and $272 million (+6 percent) from Cloud business.
Juniper Networks has generated third quarter revenue of $648 million (+1 percent) from Americas, $302 million (–9 percent) from EMEA and $183 million (–12 percent) from Asia Pacific.
Operating margin of Juniper Networks was 12.2 percent in Q3 2019, a decrease from 13.6 percent in the third quarter of 2018, and an increase from 7.5 percent in the second quarter of 2019.
Net income of Juniper Networks was $99.3 million, a decrease of 56 percent year-over-year, and an increase of 115 percent sequentially.
Juniper Networks CEO Rami Rahim said: “While we are encouraged to see improved momentum with our Cloud customers, Service Provider spending remains challenged and we experienced weaker than expected Enterprise orders in the September quarter.”
Routing product revenue fell 18 percent to $407 million, primarily due to Service Provider business. The MX product family declined. PTX grew.
Switching product revenue rose 9 percent to $242 million primarily driven by Cloud. QFX product family increased, while EX declined.
Security product revenue grew 22 percent to $94 million primarily driven by Enterprise. Service revenue rose 1 percent to $390 million.
Cloud business generated $272 million, up 6 percent. Service Provider business generated $453 million, down 17 percent, primarily due to Routing.
Enterprise business revenue rose 8 percent to $408 million.
Juniper Networks said Cloud revenue increased 6 percent and Enterprise increased 8 percent, while Service Provider declined 17 percent. The lower than mid-point revenue result was due to greater than anticipated Service Provider weakness.
Routing decreased 18 percent year-over-year and 2 percent sequentially. Switching increased 9 percent year-over-year and 12 percent sequentially. Security increased 22 percent year-over-year and 16 percent sequentially.
Services business increased 1 percent year-over-year and was flat sequentially. Software revenue increased 13 percent year-over-year and was approximately 10 percent of total revenue. In reviewing our top 10 customers for the quarter, three were Cloud, six were Service Provider, and one was an Enterprise.