Juniper Networks, Inc. (JNPR) Presents at Wells Fargo TMT Summit Broker Conference Call - (Transcript)

Juniper Networks, Inc. (NYSE:JNPR) Wells Fargo TMT Summit Broker Conference Call December 3, 2019 1:15 PM ET

Company Participants

Kenneth Miller - EVP, CFO & Treasurer

Conference Call Participants

Aaron Rakers - Wells Fargo Securities

Aaron Rakers

Perfect. So why don't we go ahead and get started. I'm Aaron Rakers, I'm the IT Hardware, Networking and Semiconductor Analyst here at Wells. Pleased to have with us Ken Miller, CFO at Juniper. And what we'll do is I'll open it up, I'll ask some questions and then open it up for the audience towards the end. But I think Ken you want to touch on the safe harbor...

Kenneth Miller

Yes. We will be making some forward-looking statements, and obviously, those carry some risk, please take a look at our SEC documents for a full listing of those risks.

Question-and-Answer Session

Q - Aaron Rakers

Perfect. So let's start the conversation with just the current demand environment. So on the most recent earnings call, you had called out that there was a bit of a downtick, if you will, in some of the growth expectations, weakness in service provider, some moderating demand in the enterprise. Can you just give us an update of what exactly you're seeing from a demand perspective right now?

Kenneth Miller

Yes. So when we gave the Q4 guidance, we did comment on the fact that it was less than what we were currently -- what The Street currently had us model that. And there's a couple of factors for that. One was service provider. We've seen some weakness in service provider that impacted Q3 results. We missed our midpoint by about $12 million in Q3. That was predominantly service provider weakness. We see that weakness extending into Q4. So some of that kind of guide -- factored in some continued weakness in service provider. The other half, we're talking about a $40 million