Juniper Network’s weak sales output for the current quarter has caused its share to drop by as much as 17 percent.
The company announced that it won’t be able to meet Wall Street estimates for the ongoing quarter, owing to weak sales to telecommunications services providers.
Juniper, which recently hired Microsoft veteran Bob Muglia to head its software division, informed that its third quarter profit will be between 26 cents per share to 30 cents per share, while Wall Street analysts were hoping it to be 38 cents per share. The sales in Japan were the worst hit which were down by nearly 24%.
The enterprise networking services provider also reported that it expected its third quarter revenue between $1.07 Billion to $1.12 Billion, well below analyst estimate of $1.22 billion.
According to Reuters, the company said that some companies had delayed making purchases, which it had expected to close in the third quarter, causing a drop in sales.
"We delivered solid year-over-year growth in the June quarter. However, we saw some moderation in certain areas of the business, which resulted in revenues coming in below our expectations," Robyn Denholm, Juniper's chief financial officer, said in a statement.