Rackspace 1Q profit rises

May 03, 2010

(AP) -- Rackspace Hosting Inc. said Monday that its first-quarter profit rose as managed hosting revenue climbed.

For the quarter that ended March 31, Rackspace earned $9.8 million, or 7 cents per share, compared with a of $6.6 million, or 5 cents per share, in the year-ago quarter.

Analysts polled by Thomson Reuters expected a profit of 7 cents per share in the latest quarter.

Revenue rose 23 percent to $178.8 million, coming in slightly above analyst estimates for $177.7 million in revenue.

Rackspace said revenue from managed hosting, which is its largest segment, rose 19 percent to $159.5 million, while revenue from remote-storage "cloud" computing rose 79 percent to $19.3 million.

The company's total server count rose to 59,876 by the end of the quarter from 50,038 in the same quarter last year.

Rackspace shares fell 65 cents, or 3.4 percent, to $18.50 in after-hours trading. The stock rose $1.20, or 6.7 percent, to $19.15 during regular trading.

Explore further: Line says no IPO this year

not rated yet
add to favorites email to friend print save as pdf

Related Stories

TI 4Q profit, revenue soar on broad chip demand

Jan 25, 2010

(AP) -- Texas Instruments Inc. said Monday its fourth-quarter profit soared as factories that use its chips for a wide range of consumer gadgets and industrial products hummed straight through the typically ...

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

EBay profit up but shares hit by soft forecast

Apr 21, 2010

(AP) -- EBay Inc. said Wednesday its first-quarter profit rose 11 percent as consumers spent more on its main website, but a disappointing forecast for the current quarter pushed the company's shares down sharply in after-hours ...

Motorola posts profit, strong sales; stock jumps

Apr 29, 2010

(AP) -- Motorola Inc. posted an unexpected profit in the first quarter, as sales of its new phones outdid its own forecasts. It also gave an outlook that was brighter than Wall Street was predicting, and ...

Recommended for you

Line says no IPO this year

58 minutes ago

The Japan-based operator of popular mobile messaging app Line said Monday it has decided not to go ahead with an initial public offering in Japan or overseas this year.

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

User comments : 0