Wednesday, February 13, 2013

Rackspace Earnings Disappoint

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Rackspace reported QE December 2012 financial results on February 12

Rackspace Earnings Disappoint On Record Results

Open cloud provider and innovator Rackspace (RAX) reported a record quarter for total revenues ($352.9 million), operating income ($49.6 million), net income ($29.9 million), GAAP earnings per share ($0.21), and cash flow from operations per share ($0.85) for the quarter ending December 2012. Though the best financial results ever reported by CEO Lanham Napier, this was considered a miss of $2.5 million on revenues ($355.4 million expected) and a miss of $0.01 on GAAP earnings per share ($0.22 expected). After reviewing the quarterly report, I consider this a mild disappointment at most. Read more and see the charts at Seeking Alpha.

About Rackspace Hosting

Rackspace Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 200,000 customers worldwide. Rackspace provides its renowned Fanatical Support® across a portfolio of IT products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated Hosting. The company offers choice, flexibility and freedom from vendor lock-in. Rackspace has been recognized by Bloomberg BusinessWeek as a Top 100 Performing Technology Company and was featured on Fortune's list of 100 Best Companies to Work For. Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting.” Rackspace is headquartered in San Antonio with offices and data centers around the world. For more information, visit

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