Juniper Says It Will Announce a New Operating Plan Soon
Juniper Networks CEO Shaygan Kheradpir says the company intends to announce a new operational plan within a few weeks.
The move comes 10 days after hedge fund Elliott Management, controlled by billionaire activist investor Paul Singer, disclosed that it had amassed a six percent stake in the company and would seek a $200 million reduction in operating costs and a $3.5 billion share buyback.
“We are going to have a detailed integrated operating plan, covering who is going to do what and when they are going to do it,” Kheradpir said on a conference call with analysts. He said the plan will include details about the structure of the company, reductions in operating costs, allocation of capital and “right-sizing,” a euphemism that usually translates into job cuts. He said the plan would be announced within three to four weeks.
Shares of Juniper rose by more than two percent in after-hours trading after the company reported better than expected earnings. Earnings were 43 cents per share, versus the 37 cents that analysts had expected. Sales were $1.27 billion, slightly beating the consensus.
Elliott Management launched its campaign to push Juniper for a cost cuts and buybacks on Jan. 13, arguing that its share price had “severely and consistently underperformed the market and its peer group” by many measures.
Kheradpir, a former COO and CTO at Barclays, took over as Juniper’s CEO on Jan. 1.