NEW YORK (TheStreet) -- Brocade Communications Systems (BRCD) stock is advancing 5.75% to $9.01 in after-hours trading on Wednesday after the communications equipment provider reported fiscal 2016 first quarter financial results that exceeded expectations.

After today's market close, the San Jose, CA-based company posted earnings of 29 cents per share on revenue of $574.3 million for the quarter ended January 30.

Analysts surveyed by Thomson Reuters had estimated earnings of 24 cents per share on revenue of $561.2 million for the latest quarter.

Revenue was nearly flat year-over-year, with storage area networking products revenue declining 2% because of soft demand for embedded and fixed configuration Fibre Channel switches.

Revenue from IP networking products was up 1% due to strong switch sales which offset weaker router sales.

"Brocade delivered another solid quarter, exceeding our revenue and earnings expectations," CEO Lloyd Carney said in a statement. "We believe that industry analysts' long-term projections for storage capacity growth is a solid indicator of the ongoing durability and health of our storage networking business."

Separately, Brocade has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and earnings per share growth.

You can view the full analysis from the report here: BRCD

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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