Revenues rise 10% YoY
US-based (SPY) Juniper Networks (JNPR) generated $222 million in revenues from its Switching business segment in 3Q16. This represented a rise of 10% YoY (year-over-year) and a rise of 6% quarter-over-quarter.
The quarter-over-quarter increase in this segment was driven by the Enterprise, Cloud, and Cable business but partially offset by a decline in the company’s National Telecom and Government business verticals.
Juniper Networks’s QFX product also grew 50% YoY. In 1Q16, the company introduced the QFX 10008 spine switch and stated that customers will get a “complete and compelling solution for the cloud.”
Major players in the switching market
According to IDC (International Data Corporation), Cisco Systems’s (CSCO) revenues in the Ethernet switching market fell 2.6% YoY in 2Q16. Its market share fell to 56.8% compared to 59.0% in 1Q16 and 60.0% in 2Q15. The other major players in this market include Hewlett-Packard Enterprise (HPE), Juniper Networks (JNPR), and China’s (FXI) Huawei.
HPE’s Ethernet switch revenues fell 34.8% YoY in 2Q16. The company has a market share of 6.0% compared to 9.2% in 4Q15 and 9.7% in 1Q16. Huawei’s revenues rose 44.0% YoY in 2Q16, whereas Juniper Networks’s revenues fell 4.3% YoY in the switching business.
According to IDC, the worldwide Ethernet switch market rose ~3.0% YoY to ~$6.0 billion in 2Q16. As you can see in the above chart, Juniper Networks’s switching revenue rose to $768.3 million in fiscal 2015 from $721.2 million in fiscal 2014 and $638.0 million in fiscal 2013. Revenue rose 13.0% YoY in fiscal 2014 but rose 7.0% YoY in fiscal 2015.
In the nine months ended September 2016, Juniper Networks’s Switching segment revenue rose to $607.2 million compared to $558.1 million in the first nine months of 2015.