Juniper said it is conducting a review of the operations of its Japanese distributors. In December 2008, the company became aware of facts that caused it to question the accuracy of point-of-sale reports from a few distributors in Japan with respect to a small number of transactions.

As a result, Juniper commenced a review of its revenue from sales through distributors in Japan. Based on its review to date, Juniper has deferred an additional $3 million of revenue for sales through distributors in Japan.

Total preliminary revenue for sales through distributors in Japan, after the $3 million deferral, for 2008 was approximately $53 million and approximately $13 million in the quarter that ended Dec. 31, 2008. Because the review is ongoing, Juniper has not made a final determination of its revenue from distributor sales in Japan and therefore these preliminary results could change.

Juniper expects to complete the review prior to filing its 10-K with the SEC.

Product revenue for the quarter in Juniper's Infrastructure Products Group -- predominantly service provider routers -- was up 17% to $587 million. Product revenue in the Service Layer Technology (SLT) group -- predominantly enterprise technologies such as security and WAN optimization systems -- dropped 5.6% to $159 million.