On Jan. 25, Juniper Networks (NASDAQ:JNPR) released Q4 and FY 2005 earnings for the period ended Dec. 31, 2005.

  • Net income included roughly $76.5 million in charges related to acquisitions, restructuring, and redemption of convertible notes. Without them, Juniper earned $0.72 per stub, a penny short of Street projections.
  • Still, Juniper had a good year, as free cash flow and operating margins both improved dramatically.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2005

FY 2004

% Change

Sales

$2,070,000

$2,063,957

$1,336,019

+54.5%

Net Profit

--

$354,029

$135,746

+160.8%

EPS

$0.73

$0.59

$0.25

+136%



Get back to basics with a look at the income statement.

Margin Checkup

FY 2005

FY 2004

Change

Gross Margin

68.37%

69.06%

-0.69%

Op. Margin

21.60%

15.21%

+6.39%

Net Margin

17.15%

10.16%

+6.99%



Margins are the earnings engine. See how they work..

Balance Sheet Highlights

Assets

FY 2005

FY 2004

% Change

Cash+ ST Invest.

$1,428,765

$1,117,841

+27.8%

Prepaid Exp.

$120,784

$108,586

+11.2%

Accounts Rec.

$268,907

$187,306

+43.6%



Liabilities

Long-Term Debt

$460,159

$481,440

-4.4%

Accounts Pay.

$165,172

$113,890

+45%



Cash Flow Highlights

FY 2005

FY 2004

% Change

Cash From Ops

$642,943

$439,448

+46.3%

Capital Expend.

$98,192

$63,185

+55.4%

Free Cash Flow

$544,751

$376,263

+44.8%



Find out why Fools always follow the money.

Related Companies:

  • Alcatel (NYSE:ALA)
  • Avaya (NYSE:AV)
  • Cisco (NASDAQ:CSCO)
  • Lucent (NYSE:LU)
  • Microsoft (NASDAQ:MSFT)
  • Nortel (NYSE:NT)

For related Foolishness:

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Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile . The Motley Fool has an ironclad disclosure policy .