Calls of Note Part 3

- RBC Capital is expecting decent results from Juniper (NASDAQ:JNPR) near term but the variability in core market share and moving parts at customer Verizon lead them to maintain Sector Perform rating and price target of $19 until they gain better visibility towards '07 estimates.

Competitor Cisco continues to enjoy accelerating bookings for its CRS-1 core router, which grew 25% sequentially in the recent quarter. Cisco is making headway with both the cable operators and the telcos for its CRS-1 and may be gaining share at key international telco accounts such as DT and NTT.

The on again, off again Verizon RFP for edge routing seems to back on again and not just for Juniper according to firm's sources. Contacts are indicating that Ericsson is working diligently to displace Juniper at this carrier now that it will soon have Redback integrated in its portfolio. So while some investors considered this RFP a done deal for Juniper, it may now be back up for grabs.

Throughout 2006 Juniper consistently lost market share sequentially in several router categories. However, in firm's view Juniper has now stabilized its market share loss in edge routers and the market for routers overall may be growing at a faster rate. Juniper's overall service provider market share now stands at about 17% with high end enterprise market share of about 26%.

Notablecalls: Not actionable but good to know category. The comments regarding the VZ deal sound interesting and may be an indication of some upcoming problems. ERIC is getting aggressive in the US. Would not want to be long the common into earnings.