The company's results for the quarter ended March 31 were in line with .

Revenue came in at US$764 million for the quarter, a 7% drop from the year ago period. Earnings, excluding expenses, charges and other items, totaled $91.6 million, down from $149.5 million in Q1 last year.Sales to service providers were down by 14% from a year ago, but enterprise revenue was up 13% from the first quarter of 2008.

Enterprises are literally buying into Juniper's total cost of ownership pitch, said CEO Kevin Johnson during a conference call on the quarter's results. Service providers, however, are cutting spending -- AT&T, which , is lowering 2009 capital spending by 10% to 15%.

"Juniper has responded well to the challenging macroeconomic environment," Johnson said in a statement. "Our focus remains on balancing short-term market realities with our commitment to creating long-term shareholder value. We're doing that by aggressively and thoughtfully managing operating expenses to ensure that we maintain strong levels of investment in our innovation and customer focused initiatives."

Johnson added that Juniper is looking to keep operating expenses flat to down during this period of market softness while still funding R&D.