Will Juniper’s Security Business Revenue Continue to Fall in 2Q17?



Security segment has several players

Juniper Networks (JNPR) competes with several tech heavyweights as well as small niche players in the network security segment. The worldwide security market is dominated by Cisco (CSCO), which has a share of approximately 14%. The other players include Palo Alto Networks (PANW), Fortinet (FTNT), Huawei, and CheckPoint (CHKP) with shares of 11.4%, 10%, 5%, and 12.5%, respectively, at the end of 4Q16.

Article continues below advertisement

As in Juniper’s other business segments, Huawei has grown revenue significantly over the last few quarters and is fast emerging as a challenger to established companies in this vertical. Several established firms have also acquired smaller companies and start-ups with disruptive technologies and solutions in order to gain market share and fight competition.

In 2016, Symantec (SYMC) acquired Blue Coat Systems to expand its cloud and email security offerings.

Juniper’s security revenue fell in 2016 and 1Q17

Juniper’s security business revenue has been falling since 2016. Its security business segment revenue fell 27% YoY (year-over-year) in fiscal 2016 to $318 million from $435 million in fiscal 2015. The company attributed the fall to weakness in its enterprise, cloud, and telecom businesses.

As the chart above shows, Juniper’s revenue also fell 10.5% YoY in 1Q17 to $65.7 million from $73.4 million in 1Q16.


More From Market Realist