Juniper growth threatened by bribe probe

A corruption probe into Juniper Networks threaten to put a dampener on the network vendor’s otherwise solid short-term growth prospects, according to Zachs Investment Research.
Juniper late last week disclosed that it is under investigation by the US Department of Justice and the SEC for possible violations under the US Foreign Corrupt Practices Act.
The vendor provided few details about the subject of the investigation, but the Act prohibits payments to foreign officials to secure business contracts.
The filing has been widely blamed for a 5.6% slump in the company’s NYSE share price on Friday. Its shares declined a further 1.6% on Monday.
Because Juniper generates the majority of its revenue from overseas, the investigation could be a particular concern for the company, Zachs said in an analyst blog.
Juniper is generating strong revenue growth in some of its key markets – its revenue grew 7% year-on-year in Q2. The company also expects to gain traction in emerging markets and is continually considering acquisitions to bolster its product portfolio.
But the outcome of the investigation, increased competition from F5 and Cisco, constricted federal spending and slow macroeconomic conditions threaten to serve as “near-term headwinds,” Zachs said.
Juniper Networks CEO Kevin Johnson last month announced a decision to retire after a successor is found.