Juniper Networks, Inc. (NYSE: JNPR) stock fell 3% on 29th Jan, 2021 after the company posted lower than expected results for the fourth quarter of FY 20. Service provider fell by 4% year-over-year and was essentially flat sequentially. From a technology perspective routing grew 9% year-over-year and grew 7% sequentially. Switching declined 2% year-over-year and increased 14% sequentially. Security fell 14% year-over-year and grew 19% sequentially. The services business fell 1% year-over-year and increased 2% sequentially.
On a year-over-year basis, enterprise delivered a record quarter growing 7% year-over-year and 14% sequentially. Cloud grew slightly year-over-year and rose 11% sequentially. Software revenue was approximately 12% of total revenue in the fourth quarter. The top 10 customers account for 30% of the total revenue as compared to 33% in the fourth quarter last year. Product deferred revenue was $105 million, which is up 5% sequentially and down 21% year-over-year due to the timing of the delivery of contractual commitments
JNPR in the fourth quarter of FY 20 has reported the adjusted earnings per share of 55 cents, beating the analysts’ estimates for the adjusted earnings per share of 54 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 1 percent to $1.22 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 2.38%. The company’s Non-GAAP gross margin was 60% in the quarter.
Additionally, the company generated cash flow from operations was $126 million for the quarter and increased both year-over-year and sequentially. The company paid $66 million in dividends, reflecting a quarterly dividend of $0.20 per share. The company also repurchased $75 million worth of shares. Total cash, cash equivalents and investments at the end of the fourth quarter was of 2020 was $2.4 billion.
Meanwhile, the company very recently announced that it has finalized its acquisition of Apstra, which is a leader in intent-based networking and automated closed-loop assurance. The closing of the deal reflects the step toward delivering an unmatched, experience-led portfolio for the data center across all customer segments, enterprise, service provider and cloud provider. The close of the Apstra acquisition follows the close of Juniper’s additional acquisitions of Netrounds and 128 Technology in H2 2020.
For the first quarter of 2021, the company expects 6% rise in revenue, including less than $10 million of revenue from the recent acquisitions of Apstra, 128 Technology and Netrounds. The non-GAAP gross margin expected to be approximately flat versus Q1 2020.