We kicked off the month of April by completing the acquisition of BTI systems. The close of this acquisition will pave the way for Juniper to help drive the industry toward a more open, automated and highly efficient IP and optical transport network.
At the OpenStack conference, Juniper participated in 12 insightful sessions, including discussions on broad and deep OpenStack integration and bridging various cloud technologies, with a focus on automation and security. Juniper was featured in a number of customer-led sessions, including AT&T, Workday, tcp cloud, Lithium Technologies and eBay Classifieds, amongst others. At OpenStack we announced two products to enhance our Software-Define Secure Networks framework -- a new containerized SRX (cSRX), which is a compact SDN-controlled firewall providing L4-L7 micro services, along with a multi-core version of the virtual SRX (vSRX) now capable of reaching 100 Gbps.
Today we announced our 2016 Q1 financial results, reporting net revenues of $1,097.9 million. In response, Rami commented.
"While our results for the March quarter were disappointing, we remain constructive on the full year and encouraged by early customer feedback on our recently introduced products."
Check out this months featured content for more detail on our virtual security portfolio and financial results.
Featured Content
Juniper Advances Software-Defined Secure Networks With a Breakthrough Virtual Security Portfolio
At OpenStack, Juniper announced several breakthrough additions to its cloud and virtualized service offerings as part of its Software-Defined Secure Networks (SDSN) framework. These enhancements include a new compact and containerized virtual firewall called Juniper Networks® cSRX, a next-generation firewall providing advanced security services for Software Defined Networks, as well as a multi-core version of the Juniper Networks vSRX, the industry's fastest virtual firewall that is expected to be capable of reaching 100 Gigabits per second (Gbps). This speed is 10 times greater than the nearest competitor and creates new possibilities for using agile and flexible virtual firewalls.
Juniper is extending its SDSN offerings by unveiling the industry's first virtual firewall in a containerized form factor. The cSRX is expected to provide a cost effective way to wrap advanced security services around every workload and the ability to scale up to high multi-tenancy.
Additionally, Juniper is announcing a massive increase in performance on its vSRX, which further extends its lead as the industry's fastest and most scalable virtual firewall. Both products are anticipated to enable the network to better detect and combat threats through increased performance, intelligence, and a higher density of services on the Intel® Xeon® processor family (x86 platform). These enhancements to Juniper's virtualized security portfolio extend the network and security administrator's ability to provision and scale firewall protection, enabling more enforcement points across the network to stop threats faster.
2016 Q1 Financial Results
Net revenues for the first quarter of 2016 were $1,097.9 million, an increase of 3% year-over-year and a decrease of 17% sequentially. Juniper's GAAP operating margin for the first quarter of 2016 was 13.5%, an increase from 12.3% in the first quarter of 2015, and a decrease from 21.2% in the fourth quarter of 2015. Non-GAAP operating margin for the first quarter of 2016 was 19.3%, an increase from 18.5% in the first quarter of 2015, and a decrease from 26.0% in the fourth quarter of 2015.
Juniper posted GAAP net income of $91.4 million, or $0.23 per diluted share for the first quarter of 2016, an increase of 14% year-over-year and a decrease of 54% sequentially. Non-GAAP net income was $142.2 million, or $0.37 per diluted share for the first quarter of 2016, an increase of 8% year-over-over and a decrease of 43% sequentially.
"We are taking a conservative and prudent approach to managing our business, while at the same time targeting areas that represent growth opportunities for the Company," said Ken Miller, chief financial officer at Juniper Networks. "We remain fully committed to shareholder value creation via a focus on introducing innovative products and services, operational excellence, and consistent capital returns."