On April 23, network equipment designer Juniper Networks (Nasdaq: JNPR) released first-quarter earnings for the period ending March 31. The company is traveling down an underappreciated road, with quiet confidence. Yes, National Poetry Month is still with us for another few days.
* The operating margin was hurt by $12 million in charges related to tax preparation and the recently closed options accounting investigation. Sales and marketing spending grew faster than sales at 15%, and R&D growth outpaced all the rest at almost 25%. Some people see less net income -- I see a company investing in its own future.
* That point is countermanded to some degree by capital expenditures cut in half. However, Juniper outsources its manufacturing and remains mostly a design shop, so capex isn't as important as research here.
* The balance sheet is starting to look good. Is Juniper looking for acquisition opportunities, or maybe a future dividend? Only time will tell.
* This is but a lowly one-star CAPS stock today. Do you agree? Disagree? Log on today and share your expertise, opinion, and anectodal experiences, all for the enrichment of Fooldom as a whole.
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