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Juniper Networks, Inc. Reports Q2 '00 Financial Results Net Revenue $113.0M; Pro forma EPS $0.08

Juniper Networks, Inc. Reports Q2 '00 Financial Results Net Revenue $113.0M; Pro forma EPS $0.08 Sunnyvale, CA - July 13, 2000 - Juniper Networks, Inc. (Nasdaq:JNPR), a leading provider of next-generation IP infrastructure systems, today reported its second quarter results for the period ending June 30, 2000.

Net revenues for the second quarter were $113.0 million, compared with $63.9 million for the first quarter, an increase of 77%. Pro forma net income, which excludes the amortization of goodwill of $1.9 million, the deferred compensation charge of $458,000 and a one time charitable contribution charge of $10.0 million, was $28.6 million or $0.08 per share, compared with a pro forma net income of $10.5 million or $0.03 per share in the first quarter of 2000.

Actual net income for the second quarter, including the above-mentioned amortization of goodwill, deferred compensation and charitable contribution charges, was $19.6 million or $0.06 per share, compared with $8.1 million or $0.02 per share in the first quarter of 2000.

Net revenues for the first six months of 2000 were $176.9 million, compared with $27.6 million for the same six month period in 1999. Pro forma net income for the first six months of 2000 was $39.1 million or $0.11 per share, compared with pro forma net loss of $8.7 million or $(0.09) per share during the same six month period in 1999. Actual net income for the first six months of 2000 was $27.7 million or $0.08 per share, compared with actual net loss of $10.5 million or $(0.11) per share during the same six month period in 1999.

The net income per share and number of shares used in the per-share calculation for all periods presented reflect the two-for-one stock split that was effective June 16, 2000.

"As we continue towards the next milestone in building Juniper Networks into a franchise, we remain focused on relentless execution," said Scott Kriens, Chairman and CEO of Juniper Networks. "Our results this quarter are representative of the opportunity we see to build the global IP infrastructure," Kriens said.

About Juniper Networks, Inc.

Juniper Networks, Inc. is a leading provider of purpose-built systems that meet the scalability, performance, density, and compatibility requirements of rapidly evolving, optically enabled IP networks. The company's purpose-built systems provide new IP infrastructure solutions for the world's leading service providers. Juniper Networks service, manufacturing teams, and IP engineers work closely with customers to build and support customer networks. The company is headquartered in Sunnyvale, California. For more information, please visit the Web site at http://www.juniper.net.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
		June 30, 2000		December 31, 1999
Assets		(unaudited)		(1)
Current assets:
Cash and cash equivalents		$ 797,125		$ 158,043
Short-term investments		384,764		187,915
Accounts receivable, net		60,733		23,950
Prepaid expenses and other current assets		15,792		7,925
Total current assets		1,258,414		377,833
Property and equipment, net		28,397		12,416
Long-term investments		412,374		97,201
Other long-term assets		131,167		25,928
Total Assets		$ 1,830,352		$ 513,378
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 37,914	$ 15,368
Other accrued liabilities	67,044	21,025
Deferred revenue	30,872	19,270
Total current liabilities	135,830	55,663
Convertible subordinated notes and other long-term liabilities	1,165,725	-
Common stock and additional paid-in capital	530,157	513,698
Deferred stock compensation	(2,010)	(3,001)
Accumulated other comprehensive income (loss)	25,129	(815)
Accumulated deficit	(24,479)	(52,167)
Total Liabilities and Stockholders' Equity	$ 1,830,352	$ 513,378
(1) Derived from audited financial statements

JUNIPER NETWORKS, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (i) (In thousands, except per share amounts)
		Three Months Ended June 30,				Six Months Ended June 30,
		2000		1999		2000		1999
		(unaudited)				(unaudited)
Net revenues	$ 113,028		$ 17,556	$ 176,914		$ 27,600
Cost of revenues	40,752	8,046	65,853	14,393
Gross profit	72,276	9,510	111,061	13,207
Operating expenses:
Research and development	18,000	7,991	33,990	14,172
Sales and marketing	17,247	3,849	28,752	6,452
General and administrative	4,171	977	7,185	1,753
Total operating expenses	39,418	12,817	69,927	22,377
Operating income/(loss)	32,858	(3,307)	41,134	(9,170)
Interest income, net	9,876	448	16,512	560
Income/(loss) before income taxes	42,734	(2,859)	57,646	(8,610)
Provision for income taxes	14,102	102	18,552	122
Net income/(loss)	$ 28,632	$ (2,961)	$ 39,094	$ (8,732)
Basic net income/(loss) per share	$ 0.09	$ (0.03)	$ 0.13	$ (0.09)
Shares used in computing basic net income/(loss) per share	301,879	107,292	298,712	98,616
Diluted net income/(loss) per share	$ 0.08	$ (0.03)	$ 0.11	$ (0.09)
Shares used in computing diluted net income/(loss) per share	346,411	107,292	346,102	98,616
(i) The statements exclude the impact of the amortization of goodwill and deferred stock compensation and charitable contribution charges in all periods.

JUNIPER NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended June 30,				Six Months Ended June 30,
		2000		1999		2000		1999
		(unaudited)				(unaudited)
Net revenues	$ 113,028		$ 17,556	$ 176,914		$ 27,600
Cost of revenues	40,752	8,046	65,853	14,393
Gross profit	72,276	9,510	111,061	13,207
Operating expenses:
Research and development	18,000	7,991	33,990	14,172
Sales and marketing	17,247	3,849	28,752	6,452
General and administrative	4,171	977	7,185	1,753
Goodwill and deferred stock compensation	2,315	891	4,706	1,795
Charitable contribution	10,000	-	10,000	-
Total operating expenses	51,733	13,708	84,633	24,172
Operating income/(loss)	20,543	(4,198)	26,428	(10,965)
Interest income, net	9,876	448	16,512	560
Income/(loss) before income taxes	30,419	(3,750)	42,940	(10,405)
Provision for income taxes	10,802	102	15,252	122
Net income/(loss)	$ 19,617	$ (3,852)	$ 27,688	$ (10,527)
Basic net income/(loss) per share	$ 0.06	$ (0.04)	$ 0.09	$ (0.11)
Shares used in computing basic net income/(loss) per share	301,879	107,292	298,712	98,616
Diluted net income/(loss) per share	$ 0.06	$ (0.04)	$ 0.08	$ (0.11)
Shares used in computing diluted net income/(loss) per share	346,411	107,292	346,102	98,616