With July off to a rough start, tech investors are bracing to hear what Juniper ( JNPR) has to say about the telecom gear market.The networking company has dazzled Wall Street with several strong quarterly performances this year. But keeping the streak alive could be tough, what with phone company spending remaining earthbound in spite of the bulls' promises for an
Big QuestionsSunnyvale, Calif.-based Juniper is expected to address two main issues on its second-quarter earnings call: new addition NetScreen and old router rival Cisco ( CSCO). Having completed the acquisition of NetScreen, Juniper will for the first time post numbers that include the financial impact of the network security software and hardware unit. J.P. Morgan's Gelblum is looking for a net top-line contribution of $36 million from NetScreen, but he is watching for signs of brain drain now that the deal has closed, which could dampen the unit's prospects. The second quarter, which ended June 30, is also the first period that could be affected by Cisco's new super router, dubbed CRS1. Cisco's new device
Routers act as traffic management devices that help direct the flow of information throughout the Internet. But even as the sparks start to fly in the core router market, Juniper is expected to make a big splash with the announcement that big spender Verizon ( VZ) has selected its so-called broadband access routers for a big network upgrade.