Case 3:17-cv-05659-WHA Document 67-4 Filed 04/19/18 Page 1 of 3
`Case 3:17-cv-05659-WHA Document 67-4 Filed 04/19/18 Page 1 of 3
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`EXHIBIT2
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`Case 3:17-cv-05659-WHA Document 67-4 Filed 04/19/18 Page 2 of 3
`Case 3:17-cv-05659-WHA Document 67-4 Filed 04/19/18 Page 2 of 3
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`LT
`nm
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
`
`FORM 10-Q
`
`(Mark One)
`QUARTERLY REPORT PURSUANTTO SECTION13 OR 15(d) OF THE SECURITIES EXCHANGEACTOF1934
`Forthe quarterly period ended September30, 2017
`or
`
`[CD
`
`#TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`Forthe transition period from
`to
`
`Commission file number: 001-34501
`
`JUNIPER NETWORKS, INC.
`(Exact name ofregistrant as specified in its charter)
`
`Delaware
`(State orotherjurisdiction ofincorporationor organization)
`
`77-0422528
`(RS. Employer Identification No.)
`
`1133 Innovation Way
`Sunnyvale, California
`(Addressofprincipal executive offices)
`
`(408) 745-2000
`(Registrant's telephone number, including area code)
`
`94089
`(Zip code)
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
`preceding 12 months(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days.
`NoO
`Yes
`Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be
`submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
`required to submit and postsuchfiles). Yes
`NoO
`Indicate by check mark whetherthe registrantis a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth
`company. Seethe definitions of “large acceleratedfiler,” “accelerated filer,” “smaller reporting company”and "emerging growth company"in Rule 12b-2 ofthe Exchange Act.
`
`Large accelerated filer
`
`Accelerated filer 0
`
`Non-accelerated filer O
`(Do not check ifa smaller
`reporting company)
`
`Smaller reporting company 0
`
`Emerging growth company
`
`If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised
`financial accounting standards provided pursuant to Section 13{a) of the Exchange Act. 0
`
`Indicate by check mark whetherthe registrantis a shell company(as defined in Rule 12b-2 of the Exchange Act). Yes No
`There were 374,928,303 shares of the Company's CommonStock, par value $0.00001, outstanding as of November3, 2017.
`oe
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`Case 3:17-cv-05659-WHA Document 67-4 Filed 04/19/18 Page 3 of 3
`Case 3:17-cv-05659-WHA Document 67-4 Filed 04/19/18 Page 3 of 3
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`Table of Contents
`In the first quarter of 2017, we began reporting revenue onthe following key customerverticals: Cloud, Telecom/Cable, and Strategie Enterprise, which we believe
`better aligns with our business model compared to our previous reporting of revenue by Service Provider and Enterprise. A summary of the types of customers
`included in our key customerverticals is as follows:
`*
`Cloud: companies that are heavily reliant on the cloud for their business model’s success. As an example, customers in the cloud vertical can include
`cloud service providers as well as enterprises that provide sofiware-as-a-service, infrastructure-as-a-service, or platform-as-a-service.
`
`*
`*
`
` Telecom/Cable: includes wireline and wireless carriers and cable operators.
`Strategic Enterprise: generally is comprised of financial services; national, federal, state, and local governments; research and educationalinstitutions, and
`enterprises not represented in the Cloud vertical.
`We continue to see significant opportunities from our shift toward the cloud, including large public and private data centers. We believe that network builders and
`operators are implementing cloud architectures to drive greater levels of operating efficiency and service agility. As these customers continue to grow, their
`architectures are evolving, and we believe our understanding ofhigh performance networking technology, and ourstrategy to innovate, position us to capitalize on
`the industry transition to more modern, cost-efficient, scalable networks.
`In switching, we see that cloud customers who can rapidly scale based on increased demand are in the process of adopting 100-Gigabit connections, or 100G, In
`the third quarter of2017, this resulted in certain large deployment delays at our largest cloud customers as they prepare for this adoption which adversely impacted
`our switching revenue results, We expect switching to return to normalized spending patterns in the first half of 2018.
`In routing, we believe that certain large
`cloud customers are starting to transition their wide area networks from scale-up to a scale-out architecture as they continue to add capacity, which we expect may
`result in a transition by these customers from purchasing our MX product family to our PTX product family. We believe this architectural shift will lead to a near-
`term slowdown in our net revenues, especially with respect
`to our routing products. However, we are unable to predict the exact
`timing or duration of the
`transition, as it will vary from customerto customer.
`Our overall cloud strategy has not changed and we continue to execute against our innovation roadmap, which includes our plan to continue to grow our relevance
`and our business in the cloud vertical.
`In 2017, we continued to execute on our productstrategy. We announced Cloud-Grade Networking, which we expect will accelerate agility and innovation with
`cloud customers. Cloud-Grade Networking builds on carrier-grade reach and reliability and enterprise-grade control and usability, bringing cloud-level agility and
`operational scale to networks everywhere. This announcementincluded two new foundational products:
`letting customers optimize their
`*
` Junos Node Slicing: converges multiple concurrent network functions on the same physical routing infrastructure,
`infrastructure while offering differentiated services with enhanced operational and administrative isolation within a single chassis.
`
`*
`
`Universal Chassis: a breakthrough system allowing customers to standardize on a hardware platform across their data center, core, and network edge. We
`believe the system will create significant value for our customers by enhancing their return on investment through reduced costs.
`
`We also announced enhancements to our Sofiware-Defined Secure Networks, or SDSN,platform and expanded ourpublic cloud offering with the introduction of
`vSRX for Microsoft Azure. Our SDSN enhancements deliver pervasive security across multi-vendor environments, public clouds, and private clouds.
`During the third quarter of 2017, we announced further cloud-based enhancements to our security portlolio, We introduced our Contrail Security product, a new
`security solution specifically designed to allowenterprises and Software-as-a-Service, or SaaS, cloud providers to protect applications running in multiple cloud
`environments. We also completed the acquisition ofCyphort Inc., a sofiware companythat provides security analytics for advancedthreat defense. This acquisition
`is expected to strengthen the capabilities ofour cloud-based threat preventionservice, Sky Advanced Threat Prevention, or Sky ATP, by increasing efficiency and
`performance and providing additional threat detection functionalities and analytics.
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