I have been all over the Juniper Networks, Inc. (NYSE:JNPR) site looking at routers, because I had heard an offhand comment that Juniper had a router that was at the same level regarding some physical specs as Alcatel Lucent SA (ADR) (NYSE:ALU)‘s . I could not find anything that really matched the things I was impressed by, though the PTX line is pretty fantastic for offering a lot of power and capacity in a compact area. The four 100GBE ports per slot on the new core router of Alcatel-Lucent really impressed me. I did not see anything that could match it slot-for-slot.
Core routing to the rescue?
It is nice that Verizon chose to go with Alcatel Lucent SA (ADR) (NYSE:ALU) for the core routers, though there has not been any specific news regarding this recently. The background on the core router is that Alcatel Lucent SA (ADR) (NYSE:ALU) created a fantastic core router using some of the same technology it deployed in its much older edge router. The new core router is a beast by all accounts, but is supposed to use less space and power considering its throughput. The middle standard model of the core router has 16 terabits per second of routing capacity, which is substantial. It can also be doubled for the high-end system, and Alcatel Lucent SA (ADR) (NYSE:ALU) is working on a multi-chassis approach to link 3 or more routers.
I think there is a strong demand for the power of the router. Alcatel-Lucent was number two for a bit in edge routers, after entering the market with nothing but a product and is currently third by only a small margin. It bumped Juniper Networks, Inc. (NYSE:JNPR) from the spot initially, but Juniper Networks, Inc. (NYSE:JNPR) has retaken the lead. Juniper is stronger in core routers though, and I think it will be a bit of an uphill battle for Alcatel Lucent SA (ADR) (NYSE:ALU).
I really want to hear the next earnings call from the new CEO and get some information regarding sales. I would go over Alcatel-Lucent’s financials, but I am not a masochist. I will say that it has almost $20 billion in revenue, though this may fall as the company makes cuts in order to actually turn a profit.
Networking shares consistently lag
Juniper Networks, Inc. (NYSE:JNPR)’s share price leaves something to be desired just like Alcatel Lucent SA (ADR) (NYSE:ALU), though far less dire. Juniper’s flat revenue seems a bit troubling, and I wonder what will turn it around. There are the current products that the company has that can result in increased demand. It might be something new, but that would take time. I have been scouring news to see if I could find something to chew on, but nothing really stuck with me. The PTX and the T4000 are impressive, but it would take time to realize growth and even then, there is no guarantee.
I will wait for the next earnings call. I want to hear less about what happens five years from now and what will keep the company great until then. SDN is not too high up on my list right now, because it will be at least a year before potential customers are even testing it. I am not really negative on Juniper Networks, Inc. (NYSE:JNPR) though, but just curious as to what will drive it. I do not think it would be a good candidate to short or buy puts. The EPS decline has already occurred. I want information that signals to me the company can get revenue growing and earnings increasing.
