Shares in Juniper Networks Inc. rose in late trading thanks to solid earnings in the company’s latest quarter.

For the quarter than ended Sept. 30, Juniper reported a profit before costs such as stock compensation of $190.8 million, or 58 cents per share, up 26% year-over-year. Revenue rose 19% from a year ago, to $1.4 billion. Analysts had been expecting earnings per share of 50 cents on revenue of $1.35 billion.

Juniper ended the quarter with $1.25 billion in total cash, cash equivalents and investments, down from $1.84 billion a year ago. Cash flow from operations in the quarter fell to $51.8 million from $136.7 million last year. Capital expenditure in the quarter was $23.9 million, down from $52.7 million a year ago.

“We delivered record revenue results during the September quarter,” Chief Executive Officer Rami Rahim said in a statement. “Product sales grew 25% year-over-year and we saw double-digit year-over-year growth across all customer verticals and all customer solutions. Our teams are executing extremely well.”

Based on our current demand, a strong backlog and actions taken to procure more supply, he added, “we expect to deliver continued revenue strength in Q4 and sustained growth in 2023 and beyond.”

Juniper’s outlook was prefaced by significant warnings in regard to supply chain issues, in particular the worldwide shortage of semiconductors and other components. “Similar to others, we are experiencing ongoing supply chain challenges, which have resulted in extended lead times, as well as elevated logistics and component costs,” Juniper said. “We continue to work to resolve supply chain challenges and have increased inventory levels and purchase commitments.”

The warning from Juniper that it’s still experiencing supply chain issues was balanced with the company saying that “while the situation is dynamic, at this point in time we believe we will have access to sufficient supplies of semiconductors and other components to meet our financial forecast.”

For its fiscal fourth quarter, Juniper predicts an adjusted profit per share of 64 cents, within a possible range of five cents either way. Revenue is expected to be $1.475 billion, plus or minus $50 million. Analysts had been expecting revenue of $1.42 billion.

The earnings beat, better-than-expected outlook and honesty regarding supply chain issues prompted a positive reaction from investors. Shares in Juniper rose more than 4% after the close of regular trading.

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