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Juniper Q2 Profits Decline On Mixed Product Sales, Sluggish Market

By Joseph F. Kovar
July 26, 2011    7:39 PM ET

Page 2 of 2

However, Johnson tempered that with some optimism which he said is coming from a strong-growing mobile Internet and cloud business combined with some new products expected to be available in the second half of the year and early next year.

Johnson said Juniper's upcoming QFabric architecture has received several significant wins, and is expected to be released by the end of the third quarter.

Juniper is also seeing continued growth in its core router and switch business, which Johnson said increases momentum for the company's other products.

He also cited recent realignments of the company's system division and the hiring of former Microsoft software solutions head Bob Muglia, along with a recent realignment of the company's top sales executives, as positive impacts on Juniper's business going forward.

When asked during the question-and-answer portion of Tuesday's analyst conference call about the impact Dell's pending acquisition of Force10 might have on Juniper, Johnson said the relationship is more complicated than in the past but that the impact should be limited.

OEM sales to both IBM and Dell have not kept up with those two partners' sales of Juniper-branded products, Johnson said.

He also said he had a call with Michael Dell, chairman and CEO of Dell, after the Force10 acquisition was unveiled, during which the two agreed that they would work to grow their companies' relationship.

"I agree it's more complicated now because of the overlap in products. . . . Our intent is to create a good relationship with Dell," he said.



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