Juniper sales up 15 percent, earnings postponed in Q2

Juniper this week posted a 15 percent hike in second quarter sales but postponed an earnings report due to a stock option investigation.

For the period ended June 30, Juniper recorded revenue of US$567.5 million compared with US$493 million for the same quarter last year. Results were in line with analyst expectations.

But Juniper said it would not disclose earnings for the quarter until it determines non-cash charges and tax implications from the backdating of stock option grants. Backdating refers to a practice in which the actual measurement dates for financial accounting purposes of certain stock option grants issued in the past differ from the recorded grant dates.

Backdating usually enriches the option recipient by increasing the value of those grants.

Juniper said its board is continuing an investigation of the practice within the company and has "reached a preliminary conclusion" that backdating took place.

"Accordingly, the company believes it will record additional non-cash charges for stock-based compensation expense, but is not yet able to determine the amount of such charges or the resulting tax and accounting impact of these actions or which periods, if any, would require restatement," Juniper said in its earnings release.

Juniper said the investigation would also delay its second quarter 10-Q filing with the SEC.

Juniper said it would also write off US$1.3 billion in the value of goodwill and assets in its Service Layer Technology line of business. SLT is made up of enterprise acquisitions NetScreen, Peribit and Redline and Kagoor, which made session border controllers for carriers.

The write-off was prompted by a decline in the company's market capitalization, Juniper said.

Juniper also said its board authorized a stock repurchase program of up to US$1 billion.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about BillionJuniper NetworksNetScreenSEC

Show Comments