NEW YORK (TheStreet) -- Shares of Brocade Communications (BRCD) are down 1.19% to $7.88 late Friday morning after the company posted weaker-than-expected revenue for the 2016 fiscal second quarter yesterday after the market close.

The San Jose, CA-based communications and networking company said revenue declined 4% to $523 million year-over-year. Analysts were expecting $530.9 million.

Earnings of 22 cents per share were in line with analysts' estimates, but were below the 29 cents per share the company earned last year.

Sales of Brocade's storage area networking (SAN) product fell 5% to $297 million due to weak demand across the product portfolio.

IP networking product revenue dropped 9% because of lower router sales.

Oppenheimer maintained its "perform" rating on the stock following the results.

"Overall, the results are consistent with our cautious view, as the SAN market faces secular challenges while IP Networking faces difficult comps and lacks a visible growth driver," the firm wrote in a note.

"With SAN weakness expected to persist and still-difficult comps in IP Networking in FY2H16, we see little upside potential," Oppenheimer added.

In April, Brocade said it would buy Ruckus Wireless (RKUS) for about $1.5 billion.

"While we're positive that the Ruckus acquisition can give Brocade a faster-growing business segment that can be integrated with its campus switching, it adds execution risk and near-term dilution," the firm said.

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.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, 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.

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