UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to_________ Commission file number: 001-34501 JUNIPER NETWORKS, INC. (Exact name of registrant as specified in its charter) Delaware 77-0422528 (Stat ...

[First Quarter 2024 Financial Results](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) This section details Juniper Networks' Q1 2024 financial performance, including the proposed HPE merger, key financial metrics, management commentary, and balance sheet and cash flow highlights [Proposed Merger with Hewlett Packard Enterprise](index=1&type=section&id=Proposed%20Merger%20with%20Hewlett%20Packard%20Enterprise) Juniper Networks announced a pending all-cash acquisition by Hewlett Packard Enterprise (HPE) for $40.00 per share, valuing the company at approximately $14 billion, with the transaction anticipated to close in late 2024 or early 2025 pending regulatory approvals - Hewlett Packard Enterprise (HPE) plans to acquire Juniper Networks in an all-cash transaction for **$40.00 per share**[2](index=2&type=chunk) - The deal represents an equity value of approximately **$14 billion** and is expected to close in late calendar year 2024 or early 2025, subject to regulatory approvals[2](index=2&type=chunk) [First Quarter 2024 Financial Performance](index=1&type=section&id=First%20Quarter%202024%20Financial%20Performance) In Q1 2024, Juniper Networks experienced a significant downturn in financial performance, with net revenues declining 16% year-over-year to $1.15 billion, resulting in a GAAP net loss of $0.8 million and a 38% year-over-year decrease in non-GAAP net income Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | YoY Change | Q4 2023 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Revenues (in millions) | $1,148.9 | $1,371.8 | -16% | $1,365.0 (implied) | -16% | | GAAP Operating Margin | (1.2)% | 8.4% | -9.6 p.p. | 9.2% | -10.4 p.p. | | Non-GAAP Operating Margin | 10.6% | 14.8% | -4.2 p.p. | 18.3% | -7.7 p.p. | | GAAP Net (Loss) Income (in millions) | $(0.8) | $85.4 | -101% | $124.3 | -101% | | Non-GAAP Net Income (in millions) | $96.6 | $156.6 | -38% | $196.9 | -51% | | GAAP Diluted EPS | $(0.00) | $0.26 | -100% | $0.38 | -100% | | Non-GAAP Diluted EPS | $0.29 | $0.48 | -40% | $0.61 | -52% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management acknowledged performance impacts from macroeconomic headwinds and customer order digestion but expressed optimism for recovery in cloud demand and double-digit order growth in the Mist-led business, emphasizing a focus on profitability and long-term AI-driven growth - CEO Rami Rahim noted that despite macro headwinds, the company is seeing a recovery in demand from cloud customers and another quarter of **double-digit order growth** in its Mist-led business[5](index=5&type=chunk) - CEO remains optimistic about long-term growth prospects, especially with customer adoption of AI offerings for network operations and data centers[5](index=5&type=chunk) - CFO Ken Miller highlighted strong non-GAAP gross margin and better-than-seasonal expense trends, emphasizing a continued focus on profitability while investing for growth[6](index=6&type=chunk) [Balance Sheet, Cash Flow, and Capital Return](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%2C%20and%20Capital%20Return) Juniper's financial position strengthened with total cash and investments rising to $1.53 billion and net cash from operations increasing to $325.0 million, while a $0.22 per share dividend was declared, and the stock repurchase program was suspended due to the pending HPE merger Key Balance Sheet and Cash Flow Metrics (Q1 2024) | Metric | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Total cash, cash equivalents, and investments (in millions) | $1,534.9 | $1,191.0 | $1,324.3 | | Net cash flows provided by operations (in millions) | $325.0 | $191.5 | $9.1 | | Days sales outstanding (DSO) | 64 days | 70 days | 69 days | - A cash dividend of **$0.22 per share** was declared, payable on June 24, 2024[8](index=8&type=chunk) - The stock repurchase program has been suspended in accordance with the terms of the merger agreement with HPE[8](index=8&type=chunk) [Detailed Financial Statements](index=4&type=section&id=Detailed%20Financial%20Statements) This section provides a detailed breakdown of Juniper Networks' Q1 2024 financial statements, including consolidated statements of operations, revenue segmentation by customer solution, vertical, and geography, and comprehensive balance sheet and cash flow summaries [Preliminary Condensed Consolidated Statements of Operations](index=4&type=section&id=Preliminary%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, total net revenues decreased 16% year-over-year to $1,148.9 million, leading to a GAAP operating loss of $14.2 million and a net loss of $0.8 million, primarily due to the revenue decline and $28.3 million in merger-related charges Q1 2024 vs. Q1 2023 Statement of Operations (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total net revenues | $1,148.9 | $1,371.8 | | Gross margin | $680.9 | $771.2 | | Total operating expenses | $695.1 | $655.5 | | Merger-related charges | $28.3 | $0.0 | | Operating (loss) income | $(14.2) | $115.7 | | Net (loss) income | $(0.8) | $85.4 | [Preliminary Net Revenues Breakdown](index=5&type=section&id=Preliminary%20Net%20Revenues%20Breakdown) In Q1 2024, net revenues declined across most customer solutions, verticals, and geographic regions compared to Q1 2023, with Service Provider revenue dropping by 31% and the Americas showing the largest regional decrease Net Revenues by Customer Solution (in millions) | Customer Solution | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Wide Area Networking | $350.4 | $474.5 | -26.2% | | Data Center | $163.1 | $193.6 | -15.8% | | Campus and Branch | $240.5 | $317.0 | -24.1% | | Hardware Maintenance & Prof. Services | $394.9 | $386.7 | +2.1% | Net Revenues by Vertical (in millions) | Vertical | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Cloud | $250.0 | $264.9 | -5.6% | | Service Provider | $381.9 | $549.9 | -30.5% | | Enterprise | $517.0 | $557.0 | -7.2% | Net Revenues by Geographic Region (in millions) | Region | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $665.5 | $798.5 | -16.7% | | Europe, Middle East, and Africa | $311.1 | $369.9 | -15.9% | | Asia Pacific | $172.3 | $203.4 | -15.3% | [Preliminary Condensed Consolidated Balance Sheets](index=9&type=section&id=Preliminary%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Juniper's balance sheet remained stable with total assets of $9.48 billion, notable changes included a decrease in accounts receivable to $814.9 million and a minor decrease in total liabilities Balance Sheet Highlights (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,069.8 | $1,068.1 | | Accounts receivable, net | $814.9 | $1,044.1 | | Inventory | $958.2 | $952.4 | | Total assets | $9,478.2 | $9,518.5 | | Total current liabilities | $2,030.0 | $2,104.0 | | Long-term debt | $1,607.1 | $1,616.8 | | Total stockholders' equity | $4,481.2 | $4,492.7 | [Preliminary Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Preliminary%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash provided by operating activities significantly improved to $325.0 million, primarily due to accounts receivable collection, while net cash used in financing activities decreased to $53.9 million due to suspended stock repurchases Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $325.0 | $191.5 | | Net cash (used in) provided by investing activities | $(265.5) | $42.2 | | Net cash used in financing activities | $(53.9) | $(190.8) | | Net increase in cash, cash equivalents, and restricted cash | $2.0 | $44.1 | - The increase in operating cash flow was largely due to a **$228.8 million** positive change from accounts receivable collection[41](index=41&type=chunk) - Cash used for repurchase of common stock decreased from **$151.3 million** in Q1 2023 to **$14.6 million** in Q1 2024[41](index=41&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section provides a reconciliation of GAAP to non-GAAP financial measures for Q1 2024 and discusses the rationale and specific adjustments made for these non-GAAP presentations [Reconciliation between GAAP and non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20between%20GAAP%20and%20non-GAAP%20Financial%20Measures) For Q1 2024, significant adjustments, including $79.9 million in share-based compensation and $28.3 million in merger-related charges, reconciled the GAAP operating loss of $14.2 million to a non-GAAP operating income of $121.3 million, and the GAAP net loss of $0.8 million to a non-GAAP net income of $96.6 million GAAP to Non-GAAP Reconciliation Highlights - Q1 2024 (in millions) | Metric | GAAP | Key Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Operating (Loss) Income** | **$(14.2)** | Share-based comp: $79.9<br>Merger charges: $28.3<br>Amortization: $17.1 | **$121.3** | | **Net (Loss) Income** | **$(0.8)** | Share-based comp: $79.9<br>Merger charges: $28.3<br>Tax effect: $(32.1) | **$96.6** | [Discussion of Non-GAAP Financial Measures](index=7&type=section&id=Discussion%20of%20Non-GAAP%20Financial%20Measures) Juniper justifies its use of non-GAAP measures to provide investors with supplemental data for enhanced transparency and comparability of continuing business operations, detailing exclusions across acquisition-related charges, other infrequent items, and share-based compensation - The company uses non-GAAP measures to assess performance by excluding items that may obscure underlying business trends, such as non-cash expenses or infrequent charges[29](index=29&type=chunk) - **Note A (Acquisition Related Charges)**: Excludes amortization of purchased intangible assets to better reflect internally developed product costs[31](index=31&type=chunk) - **Note B (Other Items)**: Excludes unique or infrequent events like merger-related charges, restructuring costs, and strategic investment gains/losses[32](index=32&type=chunk)[33](index=33&type=chunk) - **Note C (Share-Based Compensation)**: Excludes share-based compensation and related payroll tax to allow for more accurate comparisons with peer companies, as these are non-cash expenses with varying valuation methods[35](index=35&type=chunk)

Part I [Business](index=5&type=section&id=ITEM%201.%20Business) Juniper Networks delivers cloud-driven, AI-native networking solutions across Enterprise, Cloud, and Service Provider verticals, focusing on "Experience-First Networking" * Juniper's core strategy is "Experience-First Networking," which aims to simplify operations and deliver a superior network experience through cloud-driven, AI-native technology[14](index=14&type=chunk)[20](index=20&type=chunk) * The company categorizes its customers into three main verticals: Enterprise, Cloud, and Service Provider[16](index=16&type=chunk) * As of December 31, 2023, the company employed **11,144 people** worldwide, with significant teams in R&D (**4,310**), Sales and Marketing (**3,374**), and Customer Service (**2,092**)[110](index=110&type=chunk)[75](index=75&type=chunk)[78](index=78&type=chunk) Product Backlog | Date | Product Backlog (approx.) | | :--- | :--- | | Dec 31, 2023 | $569 million | | Dec 31, 2022 | $2,019 million | [Strategy and Solutions](index=6&type=section&id=ITEM%201.%20Business%23Strategy%20and%20Solutions) Juniper's strategy focuses on "Experience-First Networking" through product innovation and unified AIOps across WAN, Enterprise, and Data Center solutions * Automated WAN Solutions focus on high-performance IP transport, targeting growth in 400G/800G adoption and metro/edge architectures, including ACX, MX, and PTX series routers[23](index=23&type=chunk)[28](index=28&type=chunk) * AI-Driven Enterprise solutions leverage Mist AI to simplify operations and optimize user experiences across wireless, wired, and SD-WAN domains, with products like Juniper Access Points and EX Series switches[30](index=30&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk) * Cloud-Ready Data Center solutions address hybrid cloud growth and emerging AI workloads, featuring QFX Series switches and Juniper Apstra for intent-based automation[37](index=37&type=chunk)[38](index=38&type=chunk)[46](index=46&type=chunk) * The company's security portfolio, Juniper Connected Security, includes SRX Series gateways, vSRX virtual firewalls, and Advanced Threat Prevention (ATP) services[49](index=49&type=chunk)[53](index=53&type=chunk)[60](index=60&type=chunk) [Customer Verticals](index=13&type=section&id=ITEM%201.%20Business%23Customer%20Verticals) Juniper serves Enterprise, Cloud, and Service Provider verticals, with no single customer exceeding 10% of net revenues in recent fiscal years * Enterprise customers require high-performance, reliable networks for data centers, branch, and campus applications, increasingly adopting cloud and AI-driven architectures[63](index=63&type=chunk)[64](index=64&type=chunk) * Cloud providers are a key vertical, investing in high-performance, power-efficient infrastructure to support business growth and the adoption of new technologies like 400GbE and 800GbE[66](index=66&type=chunk)[67](index=67&type=chunk) * Service Providers are transforming their legacy infrastructure to distributed cloud environments to handle growth in mobile traffic and support new services like 5G and IoT[71](index=71&type=chunk)[73](index=73&type=chunk) * No single customer represented **10% or more** of net revenues in 2023, 2022, or 2021[74](index=74&type=chunk) [Operations and Competition](index=16&type=section&id=ITEM%201.%20Business%23Operations%20and%20Competition) Juniper outsources manufacturing globally and faces intense competition in the rapidly evolving network infrastructure market * Manufacturing is primarily outsourced to contract and original design manufacturers in several countries, which provides flexibility and reduces fixed overhead[83](index=83&type=chunk)[85](index=85&type=chunk) * The company's product backlog decreased significantly from approximately **$2,019 million** at the end of 2022 to **$569 million** at the end of 2023, as supply chain constraints diminished[90](index=90&type=chunk) * Key competitors include Cisco, Arista Networks, Ciena, HPE, Huawei, and Nokia in the broader networking space, and specialized firms like Palo Alto Networks and Fortinet in security[93](index=93&type=chunk)[95](index=95&type=chunk) [Human Capital and Executive Officers](index=21&type=section&id=ITEM%201.%20Business%23Human%20Capital%20and%20Executive%20Officers) Juniper had 11,144 employees as of December 31, 2023, guided by "The Juniper Way" with a focus on inclusion, development, and wellness * As of December 31, 2023, the company had **11,144 employees**, with the largest concentrations in the Americas and APAC regions[110](index=110&type=chunk) * Juniper's human capital strategy focuses on creating an inclusive and diverse community, with programs for leadership development, employee engagement (Talent Matters), and wellness (e.g., quarterly Wellness Days)[114](index=114&type=chunk)[117](index=117&type=chunk)[122](index=122&type=chunk) * The company was recognized as a Great Place to Work in several countries and as one of Ethisphere's World's Most Ethical Companies in 2023[111](index=111&type=chunk) Executive Officers | Name | Age | Position | | :--- | :--- | :--- | | Rami Rahim | 53 | Chief Executive Officer and Director | | Manoj Leelanivas | 54 | Executive Vice President, Chief Operating Officer | | Robert Mobassaly | 45 | Senior Vice President, General Counsel and Secretary | | Kenneth B. Miller | 52 | Executive Vice President, Chief Financial Officer | | Thomas A. Austin | 56 | Group Vice President, Chief Accounting Officer | | Christopher Kaddaras | 53 | Executive Vice President, Chief Revenue Officer | [Risk Factors](index=25&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces significant risks from its pending merger with HPE, unpredictable business results, intense competition, supply chain dependencies, cybersecurity threats, and evolving regulations * The pending merger with HPE, announced on January 9, 2024, presents significant risks, including potential business disruption, diversion of management attention, and uncertainty regarding its completion, which is subject to regulatory and stockholder approval[140](index=140&type=chunk)[141](index=141&type=chunk) * The company's product backlog, which has decreased significantly, may not be an accurate indicator of future revenues as customer buying patterns normalize post-supply chain constraints[156](index=156&type=chunk) * Dependence on contract manufacturers and single-source suppliers, particularly for semiconductors, poses significant operational risks, including supply shortfalls, delays, and increased costs[181](index=181&type=chunk)[182](index=182&type=chunk) * Cybersecurity risks are a major concern, with potential for system breaches, data theft, and reputational harm from malicious actors; the company also faces risks from AI development and use[185](index=185&type=chunk)[170](index=170&type=chunk) * The company is subject to complex and evolving international trade regulations, including U.S. export controls on encryption technology and sanctions, which could negatively affect revenues and operations[210](index=210&type=chunk) [Unresolved Staff Comments](index=45&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments * Not applicable [Cybersecurity](index=46&type=section&id=ITEM%201C.%20Cybersecurity) Juniper maintains a comprehensive cybersecurity risk management program with Board oversight, regular assessments, and third-party risk management * The company's cybersecurity risk management and strategy includes regular assessments, penetration testing, and monitoring to identify and manage material risks from cyber threats[238](index=238&type=chunk)[239](index=239&type=chunk) * Cybersecurity governance involves oversight from the full Board of Directors, with the Audit Committee designated to regularly review cybersecurity threat risks and incidents[246](index=246&type=chunk)[247](index=247&type=chunk) * The Chief Information Officer (CIO) and Chief Information Security Officer (CISO) are responsible for overseeing the cybersecurity program and provide quarterly updates to the Audit Committee[248](index=248&type=chunk)[250](index=250&type=chunk) * The company manages risks associated with third-party service providers through diligence, monitoring, and contractual obligations for cybersecurity management[243](index=243&type=chunk) [Properties](index=50&type=section&id=ITEM%202.%20Properties) Juniper's corporate headquarters are in Sunnyvale, California, supplemented by leased facilities globally, all deemed adequate for current operations * Corporate headquarters are located at an owned site in Sunnyvale, California[253](index=253&type=chunk) * The company leases additional office and facility space in the U.S. and internationally[253](index=253&type=chunk) [Legal Proceedings](index=50&type=section&id=ITEM%203.%20Legal%20Proceedings) Legal proceedings information is referenced from financial statements, with management not expecting a material adverse effect on financial position * This section incorporates information by reference from Note 14 of the financial statements[254](index=254&type=chunk) * The company is involved in various investigations, disputes, and litigation; while outcomes are uncertain, management currently believes these are not likely to have a material adverse effect on its financial position[583](index=583&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company reports that this item is not applicable * Not applicable Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Juniper's common stock trades on NYSE (JNPR), with a dividend program and remaining share repurchase authorization, while its five-year return lags S&P 500 * The company's common stock is traded on the New York Stock Exchange under the symbol JNPR[258](index=258&type=chunk) * No share repurchases were made in the three months ended December 31, 2023; approximately **$0.2 billion** remained authorized under the 2018 Stock Repurchase Program as of year-end[261](index=261&type=chunk) Five-Year Cumulative Total Stockholder Return | Index | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **JNPR** | $100.00 | $94.37 | $89.29 | $145.88 | $134.09 | $127.40 | | **S&P 500** | $100.00 | $131.47 | $155.65 | $200.29 | $163.98 | $207.04 | | **NASDAQ Telecommunications Index** | $100.00 | $113.65 | $141.14 | $149.82 | $113.74 | $130.05 | [Reserved](index=53&type=section&id=ITEM%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2023 net revenues grew 5% to $5.56 billion, driven by Enterprise, while net income decreased 34% to $310.2 million, with a pending HPE acquisition * On January 9, 2024, Juniper entered into a merger agreement to be acquired by Hewlett Packard Enterprise (HPE) for **$40.00 per share** in cash, an equity value of approximately **$14 billion**; the deal is expected to close in late 2024 or early 2025[267](index=267&type=chunk)[586](index=586&type=chunk) FY2023 vs. FY2022 Financial Highlights (in millions, except percentages) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $5,564.5 | $5,301.2 | 5% | | Gross Margin % | 57.5% | 55.8% | +1.7 p.p. | | Operating Income | $470.1 | $519.1 | (9)% | | Net Income | $310.2 | $471.0 | (34)% | | Diluted EPS | $0.95 | $1.43 | (34)% | | Operating Cash Flows | $872.8 | $97.6 | 794% | * The increase in net revenues was driven by a **27% growth** in the Enterprise vertical, which offset declines of **17%** in Cloud and **3%** in Service Provider verticals[286](index=286&type=chunk) * Operating cash flow increased significantly to **$872.8 million** in 2023 from **$97.6 million** in 2022, primarily due to improvements in working capital[271](index=271&type=chunk)[273](index=273&type=chunk) * As supply chain constraints eased in 2023, elevated product orders from prior periods declined; the company expects its backlog to normalize in 2024 as customers consume these advance orders[275](index=275&type=chunk)[276](index=276&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign currency, and equity prices, managed through swaps and forward contracts * The company's primary market risks are interest rate risk on its investment portfolio and debt, foreign currency risk on international operating expenses, and equity price risk on investments in privately-held companies[322](index=322&type=chunk)[325](index=325&type=chunk)[330](index=330&type=chunk) * Juniper uses interest rate swap contracts with a notional amount of **$600.0 million** to hedge against interest rate risk on its debt, converting certain fixed-rate notes to floating rates based on SOFR[324](index=324&type=chunk) * Foreign currency forward contracts are used to hedge forecasted transactions and mitigate variability from the re-measurement of monetary assets and liabilities in non-functional currencies[325](index=325&type=chunk)[326](index=326&type=chunk) * As of December 31, 2023, investments in privately-held companies had a carrying value of **$121.9 million**, which are considered inherently risky[330](index=330&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2021-2023, including operations, balance sheets, cash flows, and detailed notes, with an unqualified auditor's opinion [Consolidated Statements of Operations](index=73&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Consolidated%20Statements%20of%20Operations) FY2023 net revenues increased to $5,564.5 million, while operating income decreased to $470.1 million and net income fell to $310.2 million Consolidated Statement of Operations Highlights (in millions) | Line Item | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total net revenues | $5,564.5 | $5,301.2 | $4,735.4 | | Gross margin | $3,201.9 | $2,958.3 | $2,740.1 | | Operating income | $470.1 | $519.1 | $387.5 | | Net income | $310.2 | $471.0 | $252.7 | [Consolidated Balance Sheets](index=75&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets were $9,518.5 million, with liabilities at $5,025.8 million and stable stockholders' equity Consolidated Balance Sheet Highlights (in millions) | Line Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,068.1 | $880.1 | | Inventory | $952.4 | $619.4 | | Total Assets | $9,518.5 | $9,326.7 | | Long-term debt | $1,616.8 | $1,601.3 | | Total Liabilities | $5,025.8 | $4,851.6 | | Total Stockholders' Equity | $4,492.7 | $4,475.1 | [Consolidated Statements of Cash Flows](index=76&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Consolidated%20Statements%20of%20Cash%20Flows) FY2023 operating cash flow significantly increased to $872.8 million, while financing activities used $618.8 million, primarily for repurchases and dividends Consolidated Statement of Cash Flows Highlights (in millions) | Line Item | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $872.8 | $97.6 | $689.7 | | Net cash provided by (used in) investing activities | $(67.6) | $407.5 | $13.8 | | Net cash used in financing activities | $(618.8) | $(528.4) | $(1,131.7) | | Net increase (decrease) in cash | $186.6 | $(45.0) | $(440.3) | [Notes to Consolidated Financial Statements](index=79&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial components including $1.3B cash, $3.8B goodwill, $1.7B debt, $98M restructuring, and $1.3B purchase commitments * In Q3 2023, the company initiated a restructuring plan, incurring **$98.0 million** in total restructuring charges for the year, primarily for employee severance, facility exits, and asset impairments[497](index=497&type=chunk)[498](index=498&type=chunk) * As of Dec 31, 2023, the company had **$1,700.0 million** in aggregate principal of outstanding senior notes with maturities ranging from 2025 to 2041[507](index=507&type=chunk) * During FY2023, the company repurchased **13.1 million shares** for **$385.0 million** and paid cash dividends of **$0.88 per share**, totaling **$280.8 million**[520](index=520&type=chunk)[521](index=521&type=chunk)[523](index=523&type=chunk) * As of Dec 31, 2023, the company had purchase commitments of **$1,291.6 million**, primarily with contract manufacturers and suppliers, with **$989.5 million** payable within 12 months[573](index=573&type=chunk) [Controls and Procedures](index=121&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Management and auditors concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 * Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[589](index=589&type=chunk) * Management assessed internal control over financial reporting as effective as of December 31, 2023, based on the COSO 2013 framework[594](index=594&type=chunk) * Ernst & Young LLP, the independent registered public accounting firm, provided an unqualified opinion on the effectiveness of the company's internal control over financial reporting[595](index=595&type=chunk) [Other Information](index=122&type=section&id=ITEM%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q4 2023 * No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of 2023[596](index=596&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=123&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement * Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[600](index=600&type=chunk)[602](index=602&type=chunk) [Executive Compensation](index=123&type=section&id=ITEM%2011.%20Executive%20Compensation) Executive compensation details, including director and executive pay, are incorporated by reference from the 2024 Proxy Statement * Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[603](index=603&type=chunk)[604](index=604&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=123&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and equity compensation plan details are incorporated by reference from the 2024 Proxy Statement * Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[605](index=605&type=chunk)[606](index=606&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=123&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2024 Proxy Statement * Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[607](index=607&type=chunk) [Principal Accountant Fees and Services](index=123&type=section&id=ITEM%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services, including audit committee pre-approval policies, are incorporated by reference from the 2024 Proxy Statement * Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[608](index=608&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=124&type=section&id=ITEM%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements, schedules, and various exhibits Schedule II - Valuation and Qualifying Accounts (in millions) | Description | Beginning Balance (2023) | Additions/(Deductions) | Ending Balance (2023) | | :--- | :--- | :--- | :--- | | Allowance for Doubtful Accounts | $12.0 | $(0.8) | $11.2 | | Sales Return Reserve | $43.0 | $(2.0) | $41.0 | | Excess and Obsolete Inventory Reserve | $211.7 | $108.2 | $319.9 | | Contract Manufacturer Liabilities | $21.5 | $14.5 | $36.0 | [Form 10-K Summary](index=126&type=section&id=ITEM%2016.%20Form%2010-K%20Summary) The company reports that this item is not applicable * Not applicable

Juniper Networks, Inc. (NYSE:JNPR) Q3 2023 Earnings Call Transcript October 26, 2023 5:00 PM ET Company Participants Jess Lubert - Head of IR Rami Rahim - CEO Ken Miller - CFO Conference Call Participants Amit Daryanani - Evercore Michael Ng - Goldman Sachs Samik Chatterjee - JPMorgan Alex Henderson - Needham Simon Leopold - Raymond James David Vogt - UBS George Notter - Jefferies James Fish - Piper Sandler Karl Ackerman - BNP Paribas Atif Malik - Citi Meta Marshall - Morgan Stanley Tal Liani - Bank of Amer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to_________ Commission file number: 001-34501 JUNIPER NETWORKS, INC. (Exact name of registrant as specified in its charter) Delaware 77-0422528 ( ...

Juniper Networks, Inc. (NYSE:JNPR) Q2 2023 Earnings Call Transcript July 27, 2023 5:00 PM ET Company Participants Jess Lubert - VP, IR Rami Rahim - CEO Ken Miller - CFO Conference Call Participants Simon Leopold - Raymond James Samik Chatterjee - JPMorgan Tim Long - Barclays Alex Henderson - Needham David Vogt - UBS Karl Ackerman - BNP Paribas George Notter - Jefferies Mike Ng - Goldman Sachs Meta Marshall - Morgan Stanley Atif Malik - Citi James Fish - Piper Sandler Tal Liani - Bank of America Operator Gre ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to_________ Commission file number: 001-34501 JUNIPER NETWORKS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to_________ Commission file number: 001-34501 JUNIPER NETWORKS, INC. (Exact name of registrant as specified in its charter) Delaware 77-0422528 (Stat ...

Juniper Networks, Inc. (NYSE:JNPR) Q1 2023 Results Conference Call April 25, 2023 5:00 PM ET Company Participants Jess Lubert - VP, IR Rami Rahim - CEO Ken Miller - CFO Conference Call Participants Amit Daryanani - Evercore Tim Long - Barclays Paul Silverstein - TD Cowen David Vogt - UBS Samik Chatterjee - JP Morgan Aaron Rakers - Wells Fargo George Notter - Jeffries Meta Marshall - Morgan Stanley Mike Ng - Goldman Sachs James Fish - Piper Sandler Operator Greetings. Welcome to the Juniper Networks Q1 2023 ...

Financial Performance and Revenue Recognition - The company expects its gross margins and operating margins to vary over time due to factors such as customer mix shifts and increased price competition [131]. - A significant portion of the company's revenues is derived from a limited number of customers, increasing risks related to their financial condition and purchasing behavior [133]. - The company recognizes a significant portion of its revenue at the end of each quarter, which can lead to unpredictable revenue recognition [146]. - The ability to recognize revenue is contingent on the timing of product orders and deliveries, which can vary significantly [146]. - Non-standard contract terms with large customers may adversely affect revenue recognition and increase operational costs due to their greater purchasing power [176]. Supply Chain and Operational Risks - The ongoing COVID-19 pandemic has led to supply constraints and increased logistics costs, negatively impacting revenue recognition and gross margins [138]. - The company has experienced extended lead times and increased costs due to component shortages, affecting its ability to convert backlog into revenue [138]. - The ongoing global semiconductor shortage has caused increased prices and extended lead times, significantly disrupting production schedules [157]. - The company has experienced supply constraints due to manufacturing capacity limitations and component shortages, negatively impacting revenue recognition and customer lead times [28]. - The ongoing COVID-19 pandemic has resulted in increased logistics costs and extended shipping times, further complicating supply chain management [28]. - The company must effectively manage its supply chain to avoid disruptions that could adversely affect sales and earnings [159]. - The development of alternative sources for components is challenging and costly, particularly in light of geopolitical tensions affecting supply chains [28]. Market and Economic Conditions - Economic instability and geopolitical tensions, including the conflict between Russia and Ukraine, have put pressure on demand for the company's products [135]. - Fluctuating economic conditions make it difficult to predict revenues and gross margins, potentially leading to price concessions in certain markets [135]. - The company continues to monitor the impact of the COVID-19 pandemic on its operations, with uncertainty regarding future developments [139]. Competition and Market Position - The company faces competition from well-established firms with greater resources, which could impact market share and pricing strategies [134]. - The company is dependent on maintaining relationships with value-added resellers and distributors, as loss of sales to these partners could materially reduce revenues [167]. - The company anticipates fluctuations in sales of professional services and SaaS contracts based on customer satisfaction and spending levels [147]. Regulatory and Compliance Risks - The company is subject to evolving data protection laws, such as the EU's GDPR, which imposes stringent requirements and potential penalties for noncompliance [192]. - The SEC mandates the company to report on the presence of "conflict minerals" in its supply chain, which could lead to increased compliance costs and affect customer relationships [178]. - The company may incur significant costs related to compliance with cybersecurity regulations and standards set by the U.S. government, affecting product development and operational planning [189]. - The company faces increased costs and operational impacts due to compliance with environmental laws and regulations, which may require reengineering products to meet new standards [179]. Financial and Debt Management - As of December 31, 2022, the company's goodwill was $3,734.4 million, and purchased intangible assets were $160.5 million, with potential impairment charges affecting future earnings [194]. - As of December 31, 2022, the company had $1,700.0 million in outstanding senior notes and a $500.0 million unsecured revolving credit facility [201]. - The company faces risks associated with its outstanding indebtedness, including the ability to generate sufficient cash flow to service its debt obligations [202]. - The company has substantial investments in various securities, which are subject to credit, liquidity, and market risks that could adversely affect its financial condition [205]. Cybersecurity and IT Risks - The company is facing significant risks from cyberattacks, which could compromise proprietary information and disrupt operations, potentially leading to reputational and financial harm [163]. - The reliance on third-party vendors for IT services poses risks, as any disruptions in their systems could adversely affect the company's ability to deliver products and services [169]. Human Resources and Talent Management - The competition for skilled personnel in technology and engineering fields is significant, potentially leading to increased compensation expenses and challenges in product development [170]. Legal and Litigation Risks - The company has been subject to litigation, including a settlement involving a payment of $11.8 million related to the U.S. Foreign Corrupt Practices Act, which could impact financial condition and operations [173]. - The exclusive forum provisions in the company's bylaws may limit stockholders' ability to bring claims in favorable judicial forums, potentially increasing costs associated with legal disputes [207]. International Operations and Compliance - The company derives a substantial portion of its revenues from international operations and plans to continue expanding in international markets [198]. - Local laws and customs in foreign countries may conflict with U.S. regulations, posing compliance risks that could materially affect the company's operations [200].