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Apr. 21, 2014, 5:35 PM
Apr. 14, 2014, 7:07 PM
- An April Barclays survey of 100 U.S. and European CIOs found 46% expecting their company's IT spending to rise in 1H14, 20% expecting it to drop, and 34% expecting no change. Those figures compare with September survey levels of 43%, 27%, and 30%.
- Moreover, IT spending growth is seen accelerating in 2H in both the U.S. and Europe. Barclays thinks larger budgets, macro stabilization, and a need for equipment refreshes (due to high utilization rates) could be helping out.
- At the same time, the firm cautions the spending growth is uneven: Software, networking, security, and cloud services demand is healthy, but servers, storage, and IT services remain soft. Interest in the concept of a software-defined data center is gaining traction, but big data (hyped considerably last year) is losing it for now.
- Gartner has forecast IT spending will rise 3.2% this year to $3.77T after growing just 0.4% in 2013. Enterprise software (+6.9% to $320B) is expected to lead the way.
- Barclays thinks its survey bodes well for H-P (HPQ), Juniper (JNPR), F5 (FFIV), Aruba (ARUN), Ingram Micro (IM), and CDW, each of which is rated Overweight.
- Others that might take heart in the survey results: CSCO, ORCL, SAP, CA, SWI, VMW, CHKP, BRCD, ARW, AVT
Apr. 11, 2014, 3:05 AM
- Cisco (CSCO) and Juniper Networks (JNPR) have found the "Heartbleed" encryption flaw in some of their products, including routers, switches, servers, and firewalls.
- The ubiquitous nature of the products makes the bug harder to eliminate, and hackers may be able to steal sensitive data such as passwords and credit-card information as it travels across networks.
- Cisco is investigating 65 products and has confirmed 16 as being vulnerable.
- Juniper's VP of Corporate Communications, Michael Busselen, said the exposure for customers "is minimal," as the problem affected only one product. However, spokesman Corey Olfert warned that updating Juniper equipment could take a while. "It doesn't sound like a flip the switch sort of thing," said Olfert. "I don't know how quickly they can be resolved."
- Meanwhile, Intel (INTC) was still working on a patch for its McAfee security products as of yesterday.
- Vulnerable Cisco products.
Apr. 2, 2014, 5:57 PM
- Juniper's (JNPR) job cut disclosure comes five weeks after new CEO Shaygan Kheradpar unveiled (with Elliott Management's blessing) an "Integrated Operating Plan" that calls for $160M/year in opex savings by Q1 2015, and a 580 bps improvement in op. margin from 2013 to 2015.
- Juniper, which has ~9.5K employees, expects to record $35M worth of charges in Q1. The company also expects to record $70M worth of charges (starting in Q2) related to plans to dispose of 300K sq. feet of leased facilities, and $20M worth of other charges later this year.
- Product development related to the application delivery controller (ADC) technology Juniper licensed from Riverbed (RVBD) for $75M in 2012 is coming to an end. Juniper expects to record an $85M Q1 non-cash charge related to the move.
- Juniper's decision removes one more potential rival for ADC leader F5 (FFIV). Cisco largely exited the ADC market in 2012 in favor of a partnership with Citrix.
- JNPR -0.6% AH.
Mar. 19, 2014, 9:36 AM
- Juniper (JNPR +1.4%) has been upgraded to Outperform by Wells Fargo. Piper cuts shares to Neutral last month following a big rally fueled by dividend/buyback/restructuring hopes.
- Yingli (YGE -0.2%) has been cut to Neutral by BofA/Merrill, and to Underperform by Credit Suisse, following yesterday's Q4 miss and full-year shipment forecast.
- Ruckus (RKUS +2.5%) and Meru (MERU +5.1%) have been started at Buy by Mizuho. Bernstein started Ruckus at Underperform last week.
- Orbitz (OWW -6.4%) has been cut to Sell by Goldman.
- MakeMyTrip (MMYT +3.8%) has been upgraded to Outperform by Oppenheimer.
Mar. 12, 2014, 5:54 PM
- For now at least, Juniper (JNPR +0.4%) isn't showing any signs it's ready to settle with Palo Alto Networks (PANW +1%) after a mistrial was declared last week for its huge patent suit.
- "We look forward to presenting our case to a new jury in the near future," the networking/security hardware vendor declares in a statement.
- Meanwhile, Elliott Management has disclosed its Juniper stake is now at 7.4%, up from the 6.2% position it announced in January. Since Elliott's original announcement, Juniper has largely granted the firm's wish list. (13D)
Mar. 7, 2014, 4:34 PM
- Palo Alto Networks (PANW +10.9%) is within striking distance of its post-IPO high of $79.99 after a mistrial was declared for rival Juniper's (JNPR -0.6%) infringement suit against the company. The judge presiding over the suit has instructed lawyers from both parties to meet to determine their next moves.
- FBR calls the decision a big "sigh of relief" for Palo Alto investors. Ahead of the mistrial announcement, Citi was already arguing the odds of a settlement had grown, given a judge's ruling that no second trial covering indirect infringement would occur.
- Citi even thinks a cross-selling deal between Palo and Juniper is possible, given Juniper's recent struggles in the branch office firewall market.
- Palo Alto's official statement
Mar. 7, 2014, 2:44 PM
Mar. 7, 2014, 12:19 PM
- Jury deliberations are continuing for Juniper's (JNPR -0.6%) huge patent infringement suit against Palo Alto Networks (PANW +4.6%). Palo Alto shares have spiked higher on hopes of a favorable outcome.
- Juniper has alleged Palo Alto's next-gen firewalls (taking share from Juniper, Cisco, and others) infringe on IP developed by Palo Alto's founders when they were working at NetScreen (acquired by Juniper in 2004).
- Palo Alto shares jumped in early February after the court handling the suit denied a Juniper infringement motion, and granted two Palo Alto motions for summary judgment.
Feb. 27, 2014, 11:39 AM
- Juniper (JNPR +0.4%) is offering $350M worth of senior notes due 2024. The company says the proceeds will be used for "general corporate purposes," which could include buybacks or acquisitions (among other things).
- Juniper is only a week removed from promising to spend $2B+ on buybacks through Q1 2015, with $1.2B being spent via an accelerate share repurchase deal.
- The company had $4.1B in cash/investments at the end of Q4 to go with $999M in debt, but a large chunk of that cash is offshore.
Feb. 26, 2014, 9:48 AM
- Juniper (JNPR -1.1%) has been cut to Neutral by Piper. Shares have rallied strongly in 2014 on enthusiasm about the company's efforts to cut costs and return more cash to shareholders.
- NII Holdings (NIHD -6.9%) has been cut to Neutral by Macquarie.
- Teradata (TDC +2.2%) has been upgraded to Buy by Longbow. Morgan Stanley downgraded shares on Feb. 7 after the company provided soft 2014 guidance.
- Kulicke & Soffa (KLIC +2.9%) has been started at Buy by B. Riley.
Feb. 24, 2014, 5:57 PM
- Activist investor Elliott Management (6.2% stake) has reached a deal with Juniper (JNPR) under which Juniper will nominate telecom industry vet Kevin DeNuccio (now the CEO of Violin Memory) and ex-Nortel COO Gary Daichendt to its board, and won't nominate more than 7 incumbent directors at its annual meeting. (13D)
- Last week, Juniper announced a slew of cash-return and cost-cutting moves that dovetailed with Elliott and fellow activist Jana Partners' wish lists.
- Meanwhile, Nokia Solutions & Networks (NOK) chief Rajeev Suri is downplaying a recent report stating Nokia is considering a bid for Juniper. "We have a partnership with Juniper and we will seek ways to expand that partnership ... That's all."
- Suri also says NSN, whose parent company is set to receive a big cash infusion via the Microsoft deal, is on the lookout for smaller acquisitions. "We don’t have to do a deal for the sake of a deal ... We will look for opportunities out there."
- JNPR +1.5% AH.
Feb. 20, 2014, 4:53 PM
- As promised, Juniper (JNPR) and new CEO Shaygan Kheradpir have rolled out an "Integrated Operating Plan" that checks off many items on Elliott Management and Jana Partners' wish lists.
- Juniper will initiate a $0.10/share dividend in Q3 (current yield of 1.4%), and says it intends to grow its payout over time. The company also promises to spend $2B+ on buybacks through Q1 2015, and to create a new "One-Juniper" corporate structure that will yield $160M/year in opex savings by Q1 2015, and a 2015 op. margin of 25% (up 580 bps from 2013).
- The company adds Kheradpir wants Juniper to "focus on the fastest growing networking segments." Details are light for now, but the comments could suggest lower investments in slow-growing security and corporate Ethernet switch markets where Juniper has struggled. McKinsey has been hired to help with Juniper's restructuring.
- As part of buyback efforts, Juniper plans to enter into a $1.2B accelerated share repurchase agreement. Between dividends and buybacks, the company plans to return at least $3B over the next three years.
- JNPR +1.6% AH. Some of the news was priced in.
- Previous: Nokia reportedly eying Juniper
Feb. 20, 2014, 7:02 AM
- Nokia (NOK +0.7%) is reportedly considering making a bid for Juniper Networks (JNPR) and combining it with Nokia Solutions & Networks (NSN).
- NSN CEO Rajeev Suri held talks with Juniper's management last year about deepening their collaboration and about a merger, which would improve NSN's weak operations in the U.S.
- Juniper's market cap is $13.73B, around half of Nokia's $26.99B; the latter could use the U.S. company's $3.1B in cash to help fund the deal.
Feb. 19, 2014, 2:08 PM
- The court handling Juniper's (JNPR -0.6%) infringement suit against Palo Alto Networks (PANW -0.7%) has ruled Juniper will be able to "introduce evidence of willful blindness" as related to induced infringement, should the jury rule Palo Alto directly infringed Juniper's IP.
- In addition, Palo Alto's attempt to make an ensnarement defense has been denied. Markman Advisors states this eliminates one of Palo Alto's defense against the doctrine of equivalents.
- Palo Alto's shares have moved moderately lower in response to the order.
- The court order
- More on Palo Alto/Juniper
Feb. 12, 2014, 12:45 PM
- With shares having badly underperformed the Nasdaq since August due to earnings disappointments (I, II), expectations for Cisco (CSCO +0.4%) are fairly low going into today's FQ2 report. Thanks to emerging markets, set-top, and carrier router weakness, analysts collectively forecast Cisco will see an 8.8% Y/Y revenue drop in FQ2, and a 7.1% drop in FQ3.
- Stifel's checks indicate Juniper (JNPR - Q4 service provider sales +12% Y/Y) is taking carrier router share from Cisco. The firm is also worried many Cisco customers are holding off on data center switch purchases as they evaluate its new Insieme/ACI SDN platform.
- Insieme has received a mixed early reception, with some praising its innovative (software-driven) feature set and others deeming too costly/complex relative to SDN/networking virtualization alternatives that can leverage commodity hardware. VMware's (VMW) NSX platform is arguably its biggest rival on this front.
- Though admitting Cisco faces a slew of near-term challenges, Cantor remains upbeat about the potential of new products, including Insieme/ACI and Cisco's NCS carrier routers, to provide a lift in FY15 (ends July '15).
- UBS, while reiterating a Buy, thinks a long-term battle for data center supremacy is getting underway between Cisco and VMware, one whose outcome is far from certain.
Juniper Networks Inc designs, develops & sells products & services that provide its customers with network infrastructure built on simplicity, security, openness & scale. It offers services from PSD & SSD segments to service providers & enterprises.
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