European recovery lags for Juniper in Q2


European recovery lags for Juniper in Q2

Alex Scroxton

Kevin Johnson, the CEO of Juniper Networks, has expressed concern over the pace of the economic recovery in Europe as the networking vendor announced its Q2 results.

Speaking on a conference call, Johnson said that European recovery continued to lag.

"The sovereign debt situation in southern Europe added to concerns about the pace of recovery across Europe," he said.

"We bill in US dollars by and large in Europe, so there's no direct impact from the euro," said CFO Robyn Denholm. "We're watching very closely in terms of competitive pressures in terms of the euro, and also whether or not the sovereign debt crisis actually has an impact."

She added: "In enterprise we saw demand pausing in southern Europe but in the rest of the theatre business was very strong."

Indeed, buoyed by strength in western European markets, Russia and the Middle East, total EMEA revenues grew 25% year-on-year and 10% sequentially, hitting $290m (£189.7m), approximately 30% of Juniper's total sales.

Worldwide, Juniper revenues were up 24% year-on-year to $978.3m, and GAAP net income was $130.5m, up from just $14.8m in the year-ago quarter. 

Johnson added that Juniper expected to drive further M&A in the networking sector following its acquisition of video-streaming software business Ankeena, which closed on 19 April.

"Our combination with Ankeena is representative of the type of acquisitions we expect to do more of," he told financial analysts.

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