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"We believe the news from WorldCom bodes poorly for Juniper's current quarter and the remainder of 2002," U.S. Bancorp Piper Jaffrey analyst Ted Jackson said in a report. WorldCom was once considered the crème de la crème of customers for makers of network equipment such as Juniper. The small router maker gained untold legitimacy when it won a lion's share of WorldCom's router business from rival Cisco. The effect of Juniper's exposure to WorldCom, however, has been somewhat muffled by the already brutal climate for network-equipment makers. A series of bankruptcies and other fiscal issues have shaken the telecommunications market for some time, with the companies that supply equipment to them bearing the brunt of less demand in the process.
No one has been spared, Nortel Networks and Lucent Technologies are both battling to stay afloat, while others, such as Cisco and Ciena, have slashed employees and expenses to combat sharp downturns in their businesses, Juniper has embarked on iphone x case - olixar helix sleek 360 protection - space grey reviews a strategy to expand its business, recently acquiring Unisphere Networks, a maker of smaller "edge" routers, and targeting the wireless and cable industries as possible new markets for its products, But the company may find less demand for its new T640 high-end router, given the WorldCom debacle and overall climate in the telecommunications market, WorldCom was likely one of Juniper's initial targets for the new equipment..
At the company's most recent financial analyst day, Juniper executives said the company had--in combination with Unisphere--about 600 network operator customers and has made "significant inroads" with the top 40 carriers in the world. Another battered network operator, Qwest Communications International, accounted for 11 percent of Juniper's sales for its 2001 fiscal year. A Juniper representative declined to comment. The telecom equipment maker, which counts WorldCom as a major customer, may feel an impact from the accounting scandal for several quarters to come.
WorldCom, a major customer of Juniper, accounted for 14 percent of the telecom equipment maker's revenue for its 2001 fiscal year and more than 10 percent of sales in its most recent quarter, Juniper on Thursday said in a statement that WorldCom would represent less than $7 million of its fiscal second-quarter revenue, The company is scheduled to report results July 11, The effect WorldCom's woes may have on Juniper highlights the delicate relationship between network operators struggling with a precipitous decline in their business and the equipment makers who serve iphone x case - olixar helix sleek 360 protection - space grey reviews them, Though Juniper has not issued revised financial guidance to Wall Street this week, the impact of slowed WorldCom sales may be felt by the company for several quarters to come, further eroding the company's business..
CNET también está disponible en español. Don't show this again. Banks could choose not to extend a planned-for $5 billion credit line. Operations in Latin America and Europe could join the wireless business in being sold off. Funding for subsidiaries such as Digex could be at risk. Criminal charges and shareholder lawsuits could be filed. Everyone--investors, customers and employees--could lose faith in telecom companies. Gartner believes that the huge staff cuts will inevitably hurt WorldCom's service quality. Companies should therefore make contingency plans. Gartner's advice is similar to what it gave after KPNQwest's recent financial warning, although the plight of WorldCom's customers is not as dire--yet. Companies should.