Juniper heeds call to invest
Juniper Networks will invest in research and development (R&D) to gain market share in the enterprise and services segments, executives said last week.
"Our investment cycle is far from complete and we have a lot of work to do," CEO Scott Kriens said in a conference call following the announcement of the networking firm's quarterly and year-end results.
Chief financial officer Robert Dykes said during the same conference that Juniper's investment in R&D, and in growing its sales channels, would see expenses rise alongside revenue throughout this year.
"We have a tremendous opportunity to invest in this business and gain market share on both the service provider and the enterprise side," Dykes said.
Juniper's talk of investment comes as analysts have been calling for the vendor to upgrade its routing portfolio and create a local area network (Lan) switch, as well as put more resources into its sales channels.
For its 2006 fiscal fourth quarter, ended December 31, Juniper reported sales of US$598million, up from US$575million in the same period a year before. The firm did not report earnings for the quarter as a result of an ongoing stock options investigation.
For its 2007 fiscal full-year, Juniper said it expects sales of between US$2.6 billion and US$2.7 billion.