NEW YORK (TheStreet) -- Brocade Communications Systems (BRCD) shares are falling 3.39% to $7.70 in after-hours trading on Thursday immediately following the communications and networking company's 2016 fiscal second quarter results.
Earnings of 22 cents a share matched Wall Street's expectations but was lower than 29 cents a share it earned the year prior.
Revenue fell 4% year-over-year to $523 million, short of analysts' expectations of $530.9 million.
Overall, sales of its storage area networking (SAN) product dropped 5% to $297 million due to weak demand across the product portfolio. IP Networking product revenue was down 9% due to lower router sales.
In April, the San Jose-based company announced that it would acquire Ruckus Wireless (RKUS) for about $1.5 billion.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, 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.