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Juniper Secures Muthoot's Network

Zacks Equity Research

Networking giant Juniper Networks Inc. (JNPR) recently announced that Indian gold loan providing firm, Muthoot Group selected its networking solutions for an undisclosed amount. Being one of the oldest business houses (126 years), Muthoot Group currently operates more than 4,400 branches across 23 states in India.

Muthoot Group was facing competitive challenges, which led it to develop a core banking system (CBS – a system that integrates banking services through a group of networked bank branches). To ensure secure and faster service delivery across different branches, the group deployed Juniper’s SRX Series Services Gateways and EX Series Ethernet Switches at its data centers and branches. The networking solutions will allow Muthoot Group to process all loan applications in a secure and timely manner and deliver excellent customer service.

Juniper’s networking architecture runs on the Junos operating system, which enjoys great demand. Junos is a reliable, high-performance network operating system for routing, switching and security. It simplifies networking operations while reducing the cost of ownership.

We remain encouraged by the rapid deployment of Juniper’s networking products and services by organizations and government verticals to meet growing business demand. We also appreciate Juniper’s continuous efforts to make strategic acquisitions, which enrich its product portfolio.

During first quarter 2013, Juniper witnessed marginal growth in its products revenues, which was mainly due to lower contribution from the Enterprise vertical as federal and financial services sales were weak. Juniper also remains cautious about enterprise spending during the second quarter.

Despite solid product demand and potential business wins from AT&T (T) and Verizon Inc., we believe stiff competition from F5 Networks Inc. (FFIV), Cisco Systems Inc. (CSCO) and constricted federal spending will pressurize fundamentals.

Currently, Juniper has a Zacks Rank #3 (Hold).

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