Juniper Networks Inc. announced today that its chief executive officer, Kevin Johnson, will retire from his post after a new replacement is named. The 52-year old top executive formerly worked for Microsoft Corp. He has been Juniper Networks' chief executive officer for almost five years.
After the announcement, shares of the network gear manufacturer dropped to as much as 6% after the trading's close. According to Brent Bracelin, investors became quite confused and nervous regarding the management of the firm. Bracelin is a financial analyst from Pacific Crest Securities.
Due to increased spending by telecom provider companies, Juniper Networks' results went over estimates of analysts. The company's second quarter performance went "better than expected", according to analysts. Jupiter Networks was largely affected by the performances of high profile customers such as Verizon Communications, which reported good figures in its second quarter profile. Juniper supplies Verizon with their network gear.
Revenue of the company increased to US$1.2 billion (7%) in the second quarter, reflective of Verizon's strong gains.
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