Is Juniper's Junos Pulse Up for Sale? - Analyst Blog


Reportedly, Juniper Networks ( JNPR ) is contemplating the sale of its mobile security unit Junos Pulse. According to Reuters, the networking solutions provider has also hired an investment bank, UBS AG ( UBS ), to look for prospective buyers.

Junos Pulse - part of Juniper's Software Solutions Division (SSD) - offers a wide range of mobile security solutions and products to enterprises. It is noteworthy that dismal performance of the security segment (down 16% year over year) led to the overall decline in SSD sales (down 9% year over year) in fiscal 2013.

The current move appears to be in sync with Juniper's efforts to realign its business plans due to pressure from Elliot Management Corp. and Jana Partners LLC to cut expenses and increase cash payouts to shareholders.

As part of the restructuring plan, the company recently announced the downsizing of its workforce by approximately 6% and increased focus on the high-margin routing, switching, security, control and network management businesses.  

Though workforce reduction and possible sale of the Junos Pulse segment would impact the top line and put a burden on the operating results in the near term, these would help the company to focus on its core operations, in our view.

While the company's new products, cost reduction initiatives and improving execution remain the growth catalysts, increasing competition from Cisco ( CSCO ), AT&T ( T ) and F5 Networks Inc. ( FFIV ), uncertain economic conditions and constricted federal spending are the possible headwinds.

Nonetheless, we believe that increased spending by service providers should support Juniper's near-term fundamentals. The company's expansion into the software defined network segment is expected to strengthen its position in the networking space.

Currently, Juniper has a Zacks Rank #1 (Strong Buy).

CISCO SYSTEMS (CSCO): Free Stock Analysis Report

F5 NETWORKS INC (FFIV): Free Stock Analysis Report

JUNIPER NETWRKS (JNPR): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

UBS AG (UBS): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: SSD , CSCO , FFIV , JNPR , T

More from

Related Videos



Most Active by Volume

  • $16 ▲ 1.01%
  • $126.41 ▼ 1.66%
  • $6.53 ▼ 5.09%
  • $56.86 ▼ 5.66%
  • $6.08 ▼ 1.62%
  • $7.68 ▼ 4.60%
  • $9.05 ▼ 0.55%
  • $11.79 ▼ 3.91%
As of 3/5/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by