SUNNYVALE, Calif.--(BUSINESS WIRE)-- Juniper Networks (NYSE: JNPR), a leader in secure, AI-driven networks, today reported preliminary financial results for the three months ended March 31, 2022 and provided its outlook for the three months ending June 30, 2022.

First Quarter 2022 Financial Performance

Net revenues were $1,168.2 million, an increase of 9% year-over-year and a decrease of 10% sequentially.

GAAP operating margin was 5.0%, an increase from 2.6% in the first quarter of 2021, and a decrease from 11.8% in the fourth quarter of 2021.

Non-GAAP operating margin was 11.8%, a decrease from 12.1% in the first quarter of 2021, and a decrease from 18.3% in the fourth quarter of 2021.

GAAP net income was $55.7 million, an increase from the loss reported in the first quarter of 2021, and a decrease of 58% sequentially, resulting in diluted net income per share of $0.17.

Non-GAAP net income was $101.6 million, an increase of 3% year-over-year, and a decrease of 45% sequentially, resulting in non-GAAP diluted net income per share of $0.31.

The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Preliminary Net Revenues by Geographic Region table below.

“Business momentum remained strong and exceeded our expectations during the March quarter, with solid double-digit order growth across all customer verticals and all customer solutions,” said Juniper’s CEO, Rami Rahim. “While some of this strength speaks to the health of our markets, much of this demand can be attributed to strong execution across our product management, engineering and go-to-market organizations. We believe the technical differentiation of our customer solutions should position us to benefit from the various industry tailwinds that are likely to increase demand for network infrastructure in the years to come.”

“We delivered strong financial results during Q1, as revenue came in above the mid-point of our guidance and we met the mid-point of our non-GAAP earnings per share outlook, despite continued challenges from a supply chain perspective,” said Juniper’s CFO, Ken Miller. “Our global teams are executing extremely well and we continue to take actions to further strengthen our supply chain resilience. Based on our recent momentum, the strong backlog we’ve built and our efforts to further strengthen our supply, I remain confident in our ability to accelerate growth and improve profitability on a full-year basis.”

Balance Sheet and Other Financial Results

Total cash, cash equivalents, and investments as of March 31, 2022 were $1,668.9 million, compared to $1,764.6 million as of March 31, 2021, and $1,693.5 million as of December 31, 2021.

Cash flow provided by operations for the first quarter of 2022 was $193.1 million, compared to $179.8 million in the first quarter of 2021, and $116.0 million in the fourth quarter of 2021.

Days sales outstanding in accounts receivable was 65 days in the first quarter of 2022, compared to 64 days in the first quarter of 2021, and 69 days in the fourth quarter of 2021.

Capital expenditures were $25.0 million, and depreciation and amortization expense was $54.7 million during the first quarter of 2022.

Outlook

These metrics are provided on a non-GAAP basis, except for revenue and share count. Non-GAAP earnings per share is on a fully diluted basis. The outlook assumes that the exchange rate of the U.S. dollar to other currencies will remain relatively stable at current levels.

There is a worldwide shortage of semiconductors and other components impacting many industries, caused in part by the COVID-19 pandemic. Similar to others, we are experiencing ongoing supply chain challenges, which have resulted in extended lead times, as well as elevated logistics and component costs. We continue to work to resolve supply chain challenges and have increased inventory levels and purchase commitments. We are working closely with our suppliers to further enhance our resiliency and mitigate the effects of disruptions outside of our control. We believe that even with these actions, extended lead times and elevated costs will likely persist for at least the remainder of the year. While the situation is dynamic, at this point in time we believe we will have access to sufficient supplies of semiconductors and other components to meet our financial forecast.

Our guidance for the quarter ending June 30, 2022 is as follows:

• Revenue will be approximately $1,255 million, plus or minus $50 million.
• Non-GAAP gross margin will be approximately 58.0%, plus or minus 1.0%.
• Non-GAAP operating expenses will be approximately $535 million, plus or minus $5 million.
• Non-GAAP operating margin will be approximately 15.4% at the mid-point of revenue guidance.
• Non-GAAP other income and expense (OI&E) will be near Q1'22 levels.
• Non-GAAP tax rate will be approximately 20.0%.
• Non-GAAP net income per share will be approximately $0.45, plus or minus $0.05. This assumes a share count of approximately 330 million.

For more detailed insight on guidance, please refer to the CFO Commentary that can be found on our website.