Juniper Networks Reports Preliminary Second Quarter 2014 Financial Results

Strong Earnings Expansion Year-Over-Year and Quarter-Over-Quarter

Q2 2014 Financial Highlights:

  • Revenue: $1,230 million, up 5% from Q1‘14 and up 7% from Q2‘13
  • Operating Margin: 9.4% GAAP, includes $86 million of restructuring and other charges; 22.3% non-GAAP, up 3.4 pts from Q2‘13
  • GAAP Net Income Per Share: $0.46 diluted, includes a $0.41 benefit from gain on legal settlements and a $0.18 impact from restructuring and other charges
  • Non-GAAP Net Income Per Share: $0.40 diluted, up 38% from $0.29 diluted in Q1‘14 and up from $0.29 diluted in Q2‘13

SUNNYVALE, Calif.--()--Juniper Networks (NYSE: JNPR), the industry leader in network innovation, today reported preliminary financial results for the three months ended June 30, 2014 and provided its outlook for the three months ending September 30, 2014.

Net revenues for the second quarter of 2014 increased 7% year-over-year and increased 5% sequentially to $1,230 million.

Juniper’s operating margin for the second quarter of 2014 increased to 9.4% on a GAAP basis, including $86 million of restructuring and other charges, from (0.5)% in the first quarter of 2014, and decreased from 12% in the second quarter of 2013. Non-GAAP operating margin for the second quarter of 2014 increased to 22.3% from 17.2% in the first quarter of 2014, and increased from 18.9% in the second quarter of 2013.

Juniper posted GAAP net income of $221.1 million, or $0.46 per diluted share for the second quarter of 2014. The GAAP diluted income per share includes a $0.41 benefit from gain on a legal settlement partly offset by an $0.18 impact from restructuring and other charges. Non-GAAP net income was $190.3 million, or $0.40 per diluted share for the second quarter of 2014. Non-GAAP net income per diluted share increased 38% compared to the first quarter of 2014, and increased 38% compared to the second quarter of 2013.

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

“Juniper delivered another solid quarter of revenue growth, with continued diversification across our target verticals. With our focused strategy, we are seeing clear signs of success with customers who are in a build cycle for High-IQ networks and Cloud ecosystems,” said Shaygan Kheradpir, chief executive officer, Juniper Networks. “We are relentlessly executing on our Integrated Operating Plan and successfully implemented several initiatives to drive greater efficiencies across our organization. Throughout, we have been working to ignite our culture of innovation and maintain our unwavering commitment to shareholders to drive significant value through profitable growth.”

“I am pleased to report our sixth consecutive quarter of year-over-year strong earnings expansion,” said Robyn Denholm, chief financial and operations officer, Juniper Networks. “We continue to generate strong operating cash flows and have made good progress toward our operating expense and capital allocation goals. We have done so by being very mindful of how we allocate resources to ensure we continue to invest in R&D that will drive Juniper’s growth well into the future.”

Junos® Pulse Divestiture

Today, Juniper Networks also announced it has entered into a definitive agreement to sell its Junos Pulse product portfolio to Siris Capital for approximately $250 million. Siris is a leading private equity firm focused on making control investments in data, telecommunications, technology and technology-enabled business service companies. Juniper and Siris have agreed to continued support of customers and partners through the transition. Juniper’s sale of Pulse is consistent with the Company’s overall strategy outlined in its Integrated Operating Plan (IOP) and further aligns the Company’s security products to where its customers and the market is heading with High-IQ networks and building the next-generation of clouds.

Other Financial Highlights

Total cash, cash equivalents, and investments as of June 30, 2014 were $3,960 million, compared to $3,479 million as of March 31, 2014, and $3,819 million as of June 30, 2013.

Juniper’s net cash flow from operations for the second quarter of 2014 was $425 million, compared to $126 million in the first quarter of 2014, and $284 million in the second quarter of 2013. This quarter’s net cash flow reflects the gain of $75 million related to our litigation settlement.

Days sales outstanding in accounts receivable or “DSO” was 41 days in the second quarter of 2014, compared to 46 days in the prior quarter, and 40 days in the second quarter of 2013.

During the first quarter of 2014, Juniper Networks initiated a $1.2 billion accelerated share repurchase (ASR) program, of which $900 million of shares were initially delivered. The Company expects the remaining shares to be delivered no later than the end of August.

Juniper Networks also announced the initiation of a quarterly cash dividend of $0.10 per share of common stock. This is the Company’s first cash dividend in history. It will be payable on September 23, 2014 to shareholders of record as of the close of business on September 2, 2014. The Company’s Board of Directors anticipates declaring this dividend in future quarters on a regular basis; however, future declarations of dividends are subject to Board approval and may be adjusted as business needs or market conditions change.

Capital expenditures were $41 million and depreciation and amortization of intangible assets expense was $45.3 million during the second quarter of 2014.

Outlook

In the near term, there are some customer-specific dynamics that the Company is factoring into its outlook. This is partially offset by signs of strength in emerging verticals. The Company is focused on continued innovation and executing on its Integrated Operating Plan.

Juniper Networks estimates that for the quarter ending September 30, 2014:

  • Revenues will be in the range of $1,150 million to $1,200 million.
  • Non-GAAP gross margin will be approximately 64.0%, plus or minus 0.5%.
  • Non-GAAP operating expenses will be $505 million, plus or minus $5 million.
  • Non-GAAP operating margin will be roughly 21.0% at the midpoint of revenue guidance.
  • Non-GAAP net income per share will range between $0.35 and $0.40 on a diluted basis. This assumes a share count of 475 million and a non-GAAP tax rate flat to the second quarter.
  • Capital Allocation: The Company intends to opportunistically re-purchase a minimum of $550 million of common stock in addition to the ASR, by the end of the year.

All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expense, acquisition-related charges, restructuring and related costs, impairment charges, litigation settlements and resolutions, non-routine stockholder activities, gain or loss on equity investments, non-recurring income tax adjustments, product quality-related remediation charges, 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.

Conference Call Webcast

Juniper Networks will host a conference call webcast today, July 22, 2014, at 2:00 pm (Pacific Daylight Time), to be broadcast live over the Internet at http://investor.juniper.net/investor-relations/default.aspx.

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. From the network core down to consumer devices, 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.

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, 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 certain 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; 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 the Juniper Networks Integrated Operating Plan; 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.

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/investor-relations/default.aspx.

               

Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Operations

(in millions, except per share amounts)

(unaudited)

 
Three Months Ended June 30, Six Months Ended June 30,
2014       2013   2014       2013  
Net revenues:    
Product $ 929.2 $ 863.8 $ 1,805.2 $ 1,645.6
Service 300.3   286.9   594.4   564.3  
Total net revenues 1,229.5 1,150.7 2,399.6 2,209.9
Cost of revenues:
Product 359.3 321.3 685.9 599.5
Service 122.0   108.9   245.4   219.1  
Total cost of revenues 481.3   430.2   931.3   818.6  
Gross margin 748.2 720.5 1,468.3 1,391.3
Operating expenses:
Research and development 255.5 257.7 519.5 519.9
Sales and marketing 258.0 267.1 531.4 523.2
General and administrative 60.6 49.2 135.5 107.7
Restructuring and other charges 58.2   8.0   172.2   15.0  
Total operating expenses 632.3   582.0   1,358.6   1,165.8  
Operating income 115.9 138.5 109.7 225.5
Other income (expense), net 178.6   (12.6 ) 332.8   (22.7 )
Income before income taxes 294.5 125.9 442.5 202.8
Income tax provision 73.4   28.0   110.8   13.9  
Net income $ 221.1   $ 97.9   $ 331.7   $ 188.9  
 
Net income per share:
Basic $ 0.47   $ 0.19   $ 0.69   $ 0.37  
Diluted $ 0.46   $ 0.19   $ 0.68   $ 0.37  
Shares used in computing net income per share:
Basic 470.3   503.0   478.1   503.8  
Diluted 476.5   506.3   487.3   510.4  
 
               

Juniper Networks, Inc.

Preliminary Net Revenues by Product and Service

(in millions)

(unaudited)

 
Three Months Ended June 30, Six Months Ended June 30,
2014     2013   2014     2013
Routing $ 617.8   $ 577.5 $ 1,167.6     $ 1,091.2
Switching 199.8 160.2 391.8 291.7
Security 111.6   126.1   245.8     262.7
Total product 929.2 863.8 1,805.2 1,645.6
 
Total service 300.3   286.9   594.4     564.3
Total $ 1,229.5   $ 1,150.7   $ 2,399.6     $ 2,209.9
 
               

Juniper Networks, Inc.

Preliminary Net Revenues by Geographic Region

(in millions)

(unaudited)

 
Three Months Ended June 30, Six Months Ended June 30,
2014     2013   2014     2013
Americas $ 711.0   $ 675.1 $ 1,392.5   $ 1,267.2
Europe, Middle East, and Africa 324.8 300.9 620.5 591.5
Asia Pacific 193.7   174.7   386.6   351.2
Total $ 1,229.5   $ 1,150.7   $ 2,399.6   $ 2,209.9
 
               

Juniper Networks, Inc.

Preliminary Net Revenues by Market

(in millions)

(unaudited)

 
Three Months Ended June 30, Six Months Ended June 30,
2014     2013   2014     2013
Service Provider $ 831.8   $ 726.0 $ 1,614.5   $ 1,438.9
Enterprise 397.7   424.7   785.1   771.0
Total $ 1,229.5   $ 1,150.7   $ 2,399.6   $ 2,209.9
 
     

Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in millions, except percentages and per share amounts)

(unaudited)

 
Three Months Ended
June 30,

2014

        March 31,

2014

        June 30,

2013

 
GAAP operating income (loss) $ 115.9   $ (6.2 ) $ 138.5
GAAP operating margin 9.4 % (0.5 )% 12.0 %
Share-based compensation expense C 59.3 60.8 61.5
Share-based payroll tax expense C 2.7 7.0 0.6
Amortization of purchased intangible assets A 9.8 9.5 7.7
Restructuring and other charges B 85.7 122.4 8.8
Acquisition-related charges A 0.1 0.6 0.1
Professional services related to non-routine stockholder matters B 0.4   7.3    
Non-GAAP operating income $ 273.9 $ 201.4 $ 217.2
Non-GAAP operating margin 22.3 % 17.2 % 18.9 %
 
GAAP net income $ 221.1 $ 110.6 $ 97.9
Share-based compensation expense C 59.3 60.8 61.5
Share-based payroll tax expense C 2.7 7.0 0.6
Amortization of purchased intangible assets A 9.8 9.5 7.7
Restructuring and other charges B 85.7 122.4 8.8
Acquisition-related charges A 0.1 0.6 0.1
Professional services related to non-routine stockholder matters B 0.4 7.3
Gain on equity investments B (164.0 ) (0.6 )
Gain on legal settlement, net B (195.3 )
Income tax effect of non-GAAP exclusions B 6.5   (11.6 ) (27.9 )
Non-GAAP net income $ 190.3   $ 142.6   $ 148.1  
GAAP diluted net income per share $ 0.46   $ 0.22   $ 0.19  
Non-GAAP diluted net income per share D $ 0.40   $ 0.29   $ 0.29  
Shares used in computing diluted net income per share 476.5   496.5   506.3  
 

Discussion of Non-GAAP Financial Measures

This press release, including the tables above and below, includes the following non-GAAP financial measures derived from our Preliminary Condensed Consolidated Statements of Operations: operating income; operating margin; net income; and 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 charges, litigation settlement and resolution charges, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and income tax effect of non-GAAP exclusions.

Note A: Acquisition-Related Charges. We exclude certain expense items resulting from acquisitions including the following, when applicable: (i) amortization of purchased intangible assets associated with our acquisitions; (ii) compensation related to acquisitions; and (iii) acquisition-related charges. 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 related costs; (ii) impairment charges; (iii) gain or loss on legal settlement, net of related transaction costs; (iv) significant effects of tax legislation and judicial or administrative interpretation of tax regulations; (v) gain or loss on equity investments; (vi) the income tax effect on our financial statements of excluding items related to our non-GAAP financial measures; (vii) professional services related to non-routine stockholder matters; and (viii) memory-related, supplier component remediation charge. 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 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 expenses do not accurately reflect the underlying performance of our continuing operations for the period in which they are incurred. Similarly, the significant effects of retroactive tax legislation are unique events that occur in periods that are generally unrelated to the level of business activity to which such settlement or legislation applies. We believe this limits comparability with prior periods and that 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 both with these amounts 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.

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 share 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.

             

Juniper Networks, Inc.

Preliminary Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

 
June 30,
2014
December 31,
2013
ASSETS
Current assets:
Cash and cash equivalents $ 2,159.8 $ 2,284.0
Short-term investments 460.5 561.9
Accounts receivable, net of allowances 560.8 578.3
Deferred tax assets, net 151.4 79.8
Prepaid expenses and other current assets 165.2   199.9
Total current assets 3,497.7 3,703.9
Property and equipment, net 889.9 882.3
Long-term investments 1,340.1 1,251.9
Restricted cash and investments 66.3 89.5
Purchased intangible assets, net 105.3 106.9
Goodwill 4,071.5 4,057.7
Other long-term assets 166.5   233.8
Total assets $ 10,137.3   $ 10,326.0
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 246.3 $ 200.4
Accrued compensation 232.4 273.9
Deferred revenue 803.2 705.8
Other accrued liabilities 291.6   261.3
Total current liabilities 1,573.5 1,441.4
Long-term debt 1,348.9 999.3
Long-term deferred revenue 370.1 363.5
Long-term income taxes payable 125.7 114.4
Other long-term liabilities 107.6   105.2
Total liabilities 3,525.8 3,023.8
Total stockholders' equity 6,611.5   7,302.2
Total liabilities and stockholders' equity $ 10,137.3   $ 10,326.0
 
     

Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 
Six Months Ended June 30,
2014         2013  
Cash flows from operating activities:
Net income $ 331.7 $ 188.9

Adjustments to reconcile net income to net cash provided by operating activities:

 

Share-based compensation expense 120.1 111.4
Depreciation, amortization, and accretion 95.6 94.6
Restructuring and other charges 208.1 16.5
Deferred income taxes (82.3 ) 26.6
Gain on investments, net (167.0 ) (3.8 )
Gain on legal settlement, net (120.3 )
Excess tax benefits from share-based compensation (8.0 ) (1.3 )
Loss on disposal of fixed assets 0.8 0.1
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, net 21.4 (92.3 )
Prepaid expenses and other assets 149.2 (86.9 )
Accounts payable 53.0 (3.4 )
Accrued compensation (39.5 ) (64.0 )
Income taxes payable (38.3 ) (18.5 )
Other accrued liabilities (75.4 ) 3.1
Deferred revenue 101.9   104.5  
Net cash provided by operating activities 551.0   275.5  
Cash flows from investing activities:
Purchases of property and equipment (98.3 ) (142.3 )
Purchases of available-for-sale investments (1,577.6 ) (895.0 )
Proceeds from sales of available-for-sale investments 1,504.6 587.5
Proceeds from maturities of available-for-sale investments 234.2 183.8
Purchases of trading investments (2.4 ) (2.1 )
Proceeds from sales of privately-held investments 2.5 1.7
Purchases of privately-held investments (5.0 ) (14.4 )
Payments for business acquisitions, net of cash and cash equivalents acquired (27.1 ) (10.0 )
Purchase of licensed software (10.0 )
Changes in restricted cash 25.0    
Net cash provided by (used in) investing activities 55.9   (300.8 )
Cash flows from financing activities:
Proceeds from issuance of common stock 121.2 74.3
Purchases and retirement of common stock (907.1 ) (239.2 )
Purchase of equity forward contract (300.0 )
Issuance of long-term debt, net 346.5
Payment for capital lease obligation (0.4 ) (1.4 )
Customer financing arrangements 0.7 32.4
Excess tax benefits from share-based compensation 8.0   1.3  
Net cash used in financing activities (731.1 ) (132.6 )
Net decrease in cash and cash equivalents (124.2 ) (157.9 )
Cash and cash equivalents at beginning of period 2,284.0   2,407.8  
Cash and cash equivalents at end of period $ 2,159.8   $ 2,249.9  
 
               

Juniper Networks, Inc.

Cash, Cash Equivalents, and Investments

(in millions)

(unaudited)

 
June 30,
2014
December 31,
2013
Cash and cash equivalents $ 2,159.8 $ 2,284.0
Short-term investments 460.5 561.9
Long-term investments 1,340.1   1,251.9
Total $ 3,960.4   $ 4,097.8

Contacts

Investor Relations
Juniper Networks
Cindy Ta, 408-936-6131
cta@juniper.net
or
Media Relations
Juniper Networks
Danielle Hamel, 408-936-7817
dhamel@juniper.net

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Contacts

Investor Relations
Juniper Networks
Cindy Ta, 408-936-6131
cta@juniper.net
or
Media Relations
Juniper Networks
Danielle Hamel, 408-936-7817
dhamel@juniper.net