Juniper Networks has reported an 88% slide in profit as a result of flat service provider demand.
The company's shares, which have been on an upward path since March, dropped 6.4% to €17.47 in after-hours trading despite beating Wall Street estimates.
For the second quarter, Juniper reported earnings were €10.4 million, down from €84.6 million, in Q2 2008.
Not all of Juniper's financial news was bad, however. Amid falling profits, the company reported that second-quarter net revenues increased 3% sequentially to €553 million.
Similar to other telecom equipment vendors, Juniper also reported that while equipment sales dropped by 16%, professional services sales increased by 16%.
Although service provider sector sales remain flat, Juniper's CEO Kevin Johnson said that growth in enterprise sales has also helped the company boost its net revenue. “With service provider sales relatively flat quarter-over-quarter, our sequential revenue increase was supported by double digit quarter-over-quarter growth in the enterprise market,” he said in a release.
For more:
- Here's the official release
- Wall Street Journal/Dow Jones has this article
This article originally appeared in FierceTelecom
