Cloud Computing: Rackspace Hosting Tumbles After Earnings, CEO Departure
February 10, 2014
Grazed from TheStreet. Author: Keris Alison Lahiff.
Cloud computing specialist Rackspace Hosting is tumbling in the extended session after posting fourth-quarter results and announcing the departure of CEO Lanham Napier. In post-market trading, shares have taken off 8.8% to $36.82, after gaining 2.2% over Monday.
In the three months to December, the San Antonio-based company earned 14 cents a share on revenue 16% higher year-over-year to $408 million. Earnings came in as analysts surveyed by Thomson Reuters had expected, while sales beat by nearly $4 million. Rackspace’s total server count increased to 103,886, up 2% on a sequential basis…
Net income of $20.8 million took a hit, down 30% from the year-ago quarter. Adjusted EBITDA was negatively impacted by non-cash charges relating to data center operating leases. Along with the earnings release, Rackspace announced CEO and board member Napier had retired. Co-founder and executive chairman Graham Weston will assume the position of CEO…
Read more from the source @ http://www.thestreet.com/story/12327206/1/rackspace-hosting-rax-tumbles-after-earnings-ceo-departure.html
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