Revenues fall 29% YoY
Juniper Networks (JNPR) generated revenues of $86 million from its Security segment. This represented a decline of 29% YoY (year-over-year) but a rise of 9% quarter-over-quarter. The YoY decline was primarily due to weakness in its Enterprise, Cloud, and Telecom businesses.
The quarter-over-quarter rise was driven by Cloud Providers and National Government, partially offset by a decline in the Financial Services vertical.
In 1Q16, Juniper Networks’s revenues in the Security space fell 21% YoY and 37% quarter-over-quarter, whereas in 2Q16 it fell 27% YoY. The firm’s revenues in this segment have been declining over the last three quarters.
Rami Rahim, CEO of Juniper, stated, “Security continues to be a business that is in transition for us. We’ve made progress in certain areas, introducing new management software and enhancing the overall efficacy of our flagship SRX platform, which in fact has recently received third-party validation for excellent security efficacy in next-gen firewall testing.”
Major players in the security space
According to IDC (International Data Corporation), the worldwide security appliance market grew YoY in vendor revenues and unit shipments in 2Q16. This was the 12th consecutive quarter of YoY growth in the security appliance segment.
Worldwide vendor revenues in the worldwide security appliance market in 2Q16 rose ~5.8% YoY to ~$2.8 billion. Units rose 15.2% YoY for a total of 659,305 shipments. In 2015, worldwide security appliance revenues rose 9.9% to $10.6 billion.
Cisco Systems (CSCO) continued to dominate the security appliance market in 2Q16 with a 16.3% share. Other top players in this space include Check Point Software Technologies (CHKP), Palo Alto Networks (PANW), Fortinet (FTNT), and Blue Coat, with shares of 13.0%, 12.1%, 9.8%, and 4.2%, respectively, at the end of 2Q16.
Juniper Networks’s security revenue fell to $435.6 million in fiscal 2015 from $463.6 million in fiscal 2014 and $563.9 million in fiscal 2013. Revenues fell 18.0% YoY in fiscal 2014 and 6.0% YoY in fiscal 2015.
In the nine months ended September 2016, Juniper Networks’s Security segment revenue fell to $237.1 million from $319.5 million in the first nine months of 2015.