SUNNYVALE, Calif. (
) -- Networking specialist
has received a $20 million mobile data boost from telecom giant
"Our contacts indicate Verizon has awarded Juniper around $20 million for its SRX security products," wrote Avi Cohen, an analyst at Avian Securities, in a note released on Monday.
According to Cohen, Verizon's Juniper deal is part of a broader trend whereby telcos are adding more security to facilities that deliver cell phone services. Juniper's arch-rival
is also benefiting from this trend, he added, along with
Juniper has not yet responded to
request for comment on this story. A spokesman for Verizon Wireless pointed
to a February press release confirming that the telco had chosen SRX technology to protect its mobile data users. But the telco refused to confirm the pricetag for its Juniper deal.
On the conference call to discuss its recent first-quarter results, Juniper said that, in addition to Verizon,
are also using the high-end version of the SRX to secure mobile traffic. Verizon accounted for more than 10% of Juniper's total revenue during the first quarter, it added.
Juniper brought in sales of $912.6 million during the first quarter, a 19% hike on the same period last year, beating analysts' estimates. The numbers, however, disappointed investors, who were apparently looking for an even greater performance. Faced with
Juniper's stock has dipped more than 10% during the last six months.
The networking company's security products are nonetheless attracting plenty of attention, particularly in an area dubbed Network Access Control (NAC). Stifel Nicolaus analyst Todd Weller cited NAC as one of the key trends highlighted at
recent Security and Risk Management Summit in Washington D.C.
By 2015, he said, Gartner expects that 70% of large enterprises will implement NAC technology. "As far as NAC solutions providers, Cisco and Juniper are leaders with
being challengers," added Weller.
Juniper's stock rose 53 cents, or 2.23%, to $24.25 on Monday, far outpacing the modest advance in tech stocks that saw the Nasdaq gain 0.37%.
-- Reported by James Rogers in New York
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