Juniper Networks has stunned the internetworking industry by posting third-quarter profits that are nearly twice as good as analysts' projections.

The fast growing company's profit of $58.1m compares with a loss of $1.6m during the same quarter last year.

Juniper has made its name in high-speed networking kit that manages heavy internet traffic for carriers. In two years it has captured nearly 25 per cent of the high-end router market.

The company is now also active in the corporate market and is beginning to eat into Cisco's dominance of that sector. It is attacking the corporate market with scaled-down versions of its M160 routing product designed for the edge of the network.

Market watchers have attributed some of Juniper's success to an alleged 'brain drain' from Cisco's pool of engineers, though Juniper chief executive Scott Kriens preferred to attribute the good quarter to a drive by ISPs to expand their networks to handle internet demand.

In a statement Kriens said: "The expansion of our product portfolio and customer base throughout the world further solidifies our opportunities in the IP infrastructure market."

While investors and customers are divided as to whether Juniper can sustain its momentum, its success is in sharp contrast with other carrier suppliers.

Lucent's Q4 profit warning is its third this fiscal year.