Updated from 5 p.m.

Juniper ( JNPR) sank 2% late Tuesday after the networking shop posted solid fourth-quarter sales and promised to catch up on its financial filings.

The Sunnyvale, Calif., Internet-gear maker posted partial financial results for the quarter ended last month as it pores over its past bookkeeping on employee options. Sales for the fourth quarter were $595.8 million, a 4% sequential increase over third-quarter levels.

Analysts were looking for $593 million in revenue in the fourth quarter, according to Reuters Research. Investors have been hoping that the tech shop has regained its footing in the networking equipment market and can start to cash in on some of the big telco expansion efforts.

The acquisition of Netscreen three years ago was designed as a way for Juniper to start selling gear to business. But on a conference call Tuesday, CEO Scott Kriens admitted it has been a challenge.

"It has taken longer than we all would have liked," says CEO Scott Kriens. But the decision, he added, is proving to be "increasingly correct."

For the year, Juniper booked $2.3 billion in revenue, 12% growth over the $2 billion level in 2005.

Looking ahead, Juniper says it expects sales for the first quarter to be somewhere between $615 million and $625 million. That number includes about $40 million in deferred revenue from Verizon ( VZ) that Juniper says it will book over the first half of the year. For the full year, Juniper expects revenue of about $2.6 billion to $2.7 billion.

Analysts had been looking for sales of $605 million for the first quarter and $2.6 billion for the whole year. Shares spiked briefly on the outlook but then retreated.

In a press release, the company provided no mention of or update on its ongoing backdating probe.

But on the call, Juniper CFO Bob Dykes says the delinquent filings from 2006 will be filed this quarter.

The Nasdaq had given Juniper until Feb. 12 to get current on its financial reports to the Securities and Exchange Commission and keep its listing. Dykes said the Nasdaq has since told the company that it will stay the delisting order until March 30. Dykes says the company "anticipates filing before that date."

Last month, Juniper said it was looking to take a $900 million stock compensation charge after its audit team found "numerous instances in which grant dates were chosen with the benefit of hindsight as to the price of the company's stock, so as to give favorable prices."

Juniper shares fell 21 cents to $19.61 in postclose trading Tuesday.