Network equipment maker Juniper Networks has said it will cut costs and avoid large acquisitions to tackle the tough economic conditions.
The company plans to keep operating costs flat or lower compared to last year. It said it will cut executives’ pay by 5%, with the CEO’s salary reduced by 10%, to balance lower sales with higher research spending.
Juniper said a 15% increase in R&D spending will ensure it is positioned for growth once the economy recovers. It said it is developing new cloud computing products to help users cut costs and also said it has formed a cloud computing partnership with IBM.
Last month it announced preliminary results for the fourth quarter 2008, with net income of $132.5m on revenue up 14% at $923.5m.
Juniper CEO Kevin Johnson said: Our operating assumption is that we will continue to have challenging conditions as we move forward. Some of our large customers are now budgeting on a quarterly basis versus an annual basis. He said the company would avoid large acquisitions but consider small deals that are likely to boost earnings quickly.
