Juniper unveils dividend, $2B+ in buybacks, $160M/year in cost cuts

|About: Juniper Networks (JNPR)|By:, SA News Editor

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.

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