NEW YORK (TheStreet) -- Shares of Brocade Communications Systems (BRCD) were falling 3.2% to $11.63 after-hours Thursday after the networking solutions company missed analysts' estimates for revenue in the fiscal second quarter.
Brocade reported revenue of $547 million for the second quarter, a 1.9% increase from the year-ago quarter, but below analysts' estimates of $551.33 million. The company reported earnings of 22 cents a share for the quarter, above analysts' estimates of 20 cents a share.
"We significantly grew our IP Networking revenue year over year and closed the acquisitions of Connectem and the SteelApp assets, expanding our strong portfolio of virtual IP networking services," CEO Lloyd Carney said.
The company also increased its quarterly dividend by 29% to 4.5 cents a share from 3.5 cents a share. The new dividend is payable on July 2 to all shareholders of record as of the close of business on June 10.
TheStreet Ratings team rates BROCADE COMMUNICATIONS SYS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROCADE COMMUNICATIONS SYS (BRCD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."