Network equipment maker Juniper Networks has flagged a nearly six-fold increase in profits for the three months ending September on signs of improving demand for its products.
The company – which competes against Cisco in the market for internet routers and switches – said net income for its third quarter rose to $99.1 million, from just $16.8 million in the same period last year, with revenues up by 6%, to $1.19 billion.
“We delivered our fifth consecutive quarter of year-over-year growth,” said Kevin Johnson, the company’s chief executive. “We continue to see strong demand from our service-provider customers and gain traction in the enterprise.”
The statement will offer encouragement to investors given Juniper’s report of relative weakness in the enterprise market earlier this year.
Juniper says it is monitoring the possible impact on federal spending of the recent government shutdown but remains bullish about its prospects next quarter.
It is guiding for revenues of between $1.2 billion and $1.23 billion and net income of between $0.35 and $0.37 per share, compared with $0.33 per share for the third quarter.
“Our third-quarter results reflect continued momentum in revenue and earnings growth,” said Robyn Denholm, Juniper’s chief financial and operations officer. “We remain focused on growing top-line revenue, maintaining healthy gross margins and strengthening our business model.”