10Q/A filed 12/21/2010 Contracts with Verizon, Clearwire $$$$$$$$
Juniper recorded gross profit of $608,482 for the nine month period ended September 30, 2010, compared to $20,478 for the comparable period in 2009. The increase in gross profit of $588,004 for the nine months ended September 30, 2010 versus 2009 was a result of the Company growing its wireless infrastructure service business in 2010 versus minimal operations in the comparable period in the prior year. The gross profit percent of 29.3% is slightly below management’s expectations. The lower than expected gross profit percentage is predominately due to the increase in tower hands and the "acquisition of tools and equipment" in order to augment opportunities that the Company would potentially have in the fourth quarter. In addition the Company entered into certain contracts in order to establish itself as a wireless infrastructure service provider to the wireless telecommunications industry and developing relationships with certain telecommunications companies.
We currently have contracts with Verizon, Clearwire (currently in process of building out nationwide mobile WIMAX network and is on track to cover over 120 million people in 80 markets by the end of 2010), American Tower, Ericsson, Cricket, SBA, Aero Solutions, Global Wireless Construction, Crown Castle, and Oddville Communications. We expect to utilize our new abilities to provide our wireless and broadband infrastructure services nationwide. In some instances, our current clients may be used as the platform for our national expansion aspirations and fuel what could be substantial future growth.
Management has or will consider taking the following actions to improve the operating performance of its wireless infrastructure services: (1) utilize staffing agencies; (2) hire new management teams and reorganize management’s responsibilities; (3) align labor costs with market conditions; (4) evaluate our geographic footprint and customer needs with customer contracts; and (5) utilize accounts receivable financing.
We believe that the demand for wireless infrastructure services will increase in the wireless broadband segment during the balance of 2010 and beyond through the continued support of the cellular market and through a robust wireless industry. More specifically, the consumer demand for smartphones is increasing which will require more and more bandwidth on millions of these wireless devices throughout the United States. This demand is fueling the need to update existing towers or the construction of new towers that support third generation (“3G”) and/or fourth generation (“4G”) technologies at increasing rates. The increased consumer demand is expected to propel the Company’s business well into the future. Consequently, the Company’s efforts are focused on being able to handle these opportunities with existing and new staff in order to meet its client’s needs utilizing staffing agencies.
The Company through its marketing program is exploring new opportunities in its wireless infrastructure and broadband service business. The Company will seek to achieve a greater more diversified balance in its business base among the various competing segments of rapidly expanding wireless providers. The Company will continue to evaluate potential opportunities in terms of the capital investments required, cash flow requirements of the opportunity, and the margins achievable in each market segment.