NEW YORK (TheStreet) -- Brocade Communications  (BRCD) stock is plunging by 12.33% to $8.43 in early-afternoon trading on Monday, after the networking hardware supplier said it expects 2016 second quarter results to fall short of its previous expectations. 

Brocade now anticipates that adjusted earnings will range between 21 cents and 23 cents per share, down from its previous forecast for a range between 22 cents and 24 cents per share. Revenue is expected to range between $518 million and $528 million, compared to the company's prior forecast for between $542 million and $562 million.

Analysts surveyed by Thomson Reuters are looking for earnings of 23 cents per share on revenue of $551.8 million.

The updated expectations reflect "general softness" in IT spending, CEO Lloyd Carney said in a statement. 

"We are addressing these near-term challenges by continuing our focus on sales execution in this weaker demand environment, maintaining prudent expense controls and managing our investments in line with our stated priorities," Carney continued.

Brocade is scheduled to announce its full second quarter results after the market close on May 19.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Brocade's strengths such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels, impressive record of earnings per share growth and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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 article's author.