- At a Citi conference (webcast), departing CEO Kevin Johnson stated Juniper's (JNPR +5.5%) Q3 bookings are tracking above expectations, and that router demand is healthy.
- Routing rivals Cisco (CSCO +1.5%) and Alcatel-Lucent (ALU +4.7%) appear to be getting a lift from the remarks, and from Ciena's FQ3 beat and FQ4 guidance. In Alcatel's case, M&A hopes fueled by Microsoft/Nokia might also be a trigger.
- Thanks in part to strong MX Series edge router sales, Juniper's routing revenue rose 14% Y/Y in Q2, offsetting declining security revenue (share loss) and accounting for half of total revenue. Cisco reported strong edge router sales for the July quarter, but total routing revenue was flat thanks to core router weakness (possible due to share loss to Juniper/Alcatel).
- Alcatel's IP division (switches/routers) has been a strong point, growing 21% Y/Y in Q2. The company entered the core router market last year via its 7950 XRS line; a PR mudslinging battle with Cisco began shortly afterwards.
Juniper surges on upbeat CEO comments; peers also up
Sep 4 2013, 11:41 ET