Booked a charge of $52.1m related to the tax treatment of stock-based compensation
Network equipment maker Juniper Networks has posted 88% drop in its net income for the second quarter of 2009, compared to the same period last year, as revenue declined and the company incurred a charge related to the tax treatment of stock-based compensation.
The company posted net income of $14.8m, or $0.03 per diluted share, down compared to net income of $120.4m, or $0.22 per diluted share for the same period a year-ago.
The company booked non-recurring income tax charge of $52.1m, or $0.10 per diluted share, related to a change in the tax treatment of stock-based compensation in research and development cost sharing arrangements for certain US multinational companies due to a federal appellate court ruling in the quarter.
Net revenue for the second quarter fell 11% to $786.4m for the three months ended June 30, 2009 from $879m in the same quarter last year. Net revenue increased 3% when compared with $764.2m for the first quarter of 2009.
Kevin Johnson, Juniper’s chief executive officer, said: We continue to take a disciplined approach to controlling operating expenses as we navigate this challenging economic period. With service provider sales relatively flat quarter-over-quarter, our sequential revenue increase was supported by double digit quarter-over-quarter growth in the enterprise market.