Robyn Denholm, executive vice president and CFO for Juniper Networks, thinks the dollar has a strong future ahead, despite of a “relatively weak” near term outlook. The euro isn’t going anywhere, either. A bold statement from Juniper, considering the company’s current financial position.
“The decline in the dollar against most of the world’s major and emerging currencies has helped the U.S. to compete in exports,” she said.
“Juniper, which gets 53% of its revenues from outside the U.S., uses currency hedging to manage foreign-exchange risk, Denholm said in an interview with Dow Jones Newswires at The Wall Street Journal’s CFO Network conference in Washington.”
Denhold said that she hedges Juniper’s currency exposure using forwards and options on the euro, pound, yen, Indian rupee, and Chinese yuan. The rupee is subject to government control, meaning that only way it can be hedged is via no deliverable forwards. She continued to say that Juniper’s currency hedges are between two and six months in duration.
Juniper’s has been dealing with some financial troubles recently , similarly to what Hewlett-Packard and currently leading competitor Cisco have been seeing in the last few quarters. Nevertheless, the company is working towards changing that by gaining new customers. It just landed a big contract with Comcast, through which Juniper will provide the cable provider with its Juniper Networks T Series Core Routers, MX Series Universal Edge Routers and EX Series Ethernet Switches to power its Metro Ethernet service offering in 20 U.S cities.
Another network that will powered by Juniper technology will be OnLive. Today, the two companies announced a strategic partnership that will eventfully make Juniper the exclusive networking provider for the ever-expanding OnLive network. Further, the two companies will also develop VDI technology based on OnLive’s instant response video compression technology and Juniper’s Junos.