Juniper Networks this week sold its mobile security unit, Junos Pulse, to Siris Capital for $250 million.
Jennifer Clark, vice president of 451 Research, said the move was “not a big surprise."
“Junos Pulse has reportedly been on the block since April and represents a market sector in which Juniper stood little to no chance of commanding a dominant role," she wrote in a July 24 blog. “We expect the access routing and wireless LAN product lines to follow and to be shed before the end of the year."
The news comes as Juniper posted a $1.23 billion increase in second-quarter revenue but said its third quarter results will fall due to “customer dynamics." 451 Research noted that AT&T and Verizon, Juniper’s largest operator customers, are cutting spending.
Those reductions are hitting Juniper’s finances, even though reports say Junos Pulse was breaking even – it contributed $31.4 million this past quarter – so the group’s sale isn’t likely to impact Juniper’s bottom line.