Financial reports illustrate that some networking-equipment vendors are enjoying market growth while others might see a bumpy road ahead. Juniper Networks saw a 3% increase in first-quarter revenues compared with a year ago, while Polycom saw revenues dip 2% in the same period. "We are off to a good start to 2013, with strength in key markets. To be sure, there are headwinds in certain areas of our business, but overall, we executed well against the priorities we outlined last quarter," said Juniper's Kevin Johnson. He predicted that the rest of the year could be challenging because of decreases in government and consumer spending.

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