Boston, MA 04/24/2014 (wallstreetpr) – Juniper Networks, Inc. (NYSE:JNPR) reported the revenues that were much better than the analyst’s expectations. The company reported a 10% rise in the revenue in its first quarter 2014 results as compared to the revenues in the same quarter in last year. The revenue figure came at $1.17 billion. The analysts expected the revenues to come at $1.15 billion. The increases in revenues can be attributed to the rise in carrier orders. The company has taken necessary steps to cut down the extra expenses. Jupiter is also looking to enhance the cash payouts and is focusing to boost sales.
Increased demand
The telecommunication sector is looking to expand their services. They are making efforts to provide better connectivity with the advanced networks. It is a required step to adjust to the rising wireless web traffic. In this process, Juniper Networks, Inc. (NYSE:JNPR) will see an increased demand for its routers. Juniper holds the second position in the networking equipment industry. It gains 65% or more revenue from the phone service providers.
The effective steps
The management of Juniper Networks, Inc. (NYSE:JNPR) took substantial steps in the first three months of the year to cut down on expenses. To improve the cost structure, the company is looking to reduce the workforce by 6%. It can cut down 570 jobs. Juniper is looking to stop the research and development process on new products for some time. As of now the company spends 22% of revenue on R&D. Juniper also pays hefty packages to its engineers.
The future prospects
The steps taken in the first quarter to cut expenses resulted in a saving of about $122 million. The company is looking to reduce the expenses by $160 million. It wants to make the shareholders happy by going for stock repurchases and by giving dividends in the coming time. Juniper Networks, Inc. (NYSE:JNPR) is expecting to post revenue of $1.2 billion in the second quarter of the year.
