Equipment maker Juniper Networks reported an 80% decline in third-quarter net income as restructuring costs chewed into revenues that were only slightly up on 2011 results.
Net income came in at $17 million, compared with $84 million during the third quarter of 2011, while revenues rose to $1.12 billion from $1.11 billion a year earlier.
The company has been hit by a reduction in spending on network equipment, as operators lower their capital expenditure in response to the poor economic conditions.
Last month, Juniper (Sunnyvale, USA) announced plans to lay off about 5% of its workforce, hoping to reduce operating expenses in 2013 by about $150 million compared with 2012 amounts.
It has warned of further challenges ahead, as customers continue to be cautious with regard to their investment decisions, but says the long-term outlook is good.
Revenue for the fourth quarter is expected to be in the $1.1–1.13 billion range, with net income per share between $0.19 and $0.22, compared with a figure of $0.22 for the recent quarter before restructuring charges are included.
Juniper said demand remained weakest among its European operator customers. While overall US revenues improved in the recent quarter, executives also noted some retrenchment by federal and financial services clients.
“Long-term demand fundamentals for high-performance networking continue to be positive, yet customers remain cautious in the near-term environment,” said Robyn Denholm, the company’s chief financial officer, in a statement.
“We remain focused on executing our strategy to drive revenue growth, and with our workforce restructuring largely complete, we’re well prepared to capture the market opportunity ahead,” he said.