RackSpace Hits Targets for Q3 – Barely

RackSpace has hit its targets for the third quarter of the financial year by a slim margin as a result of an increase in its workforce and its recent company and product acquisitions.

The open cloud webhosting company reported its income at $27 million for the third quarter of the 2012 financial year. These figures translate to 19 cents a share. Good news also comes from its non-GAAP earnings which came in at 20 cents a share, which was based on a revenue of $336 million (an increase of 27%).

The margins are extremely slim as speculators on Wall Street were predicting a third quarter earnings of $335.9 million, or 19 cents per share. Financial targets clearly weren’t the target of the company during this quarter as they spent much time speaking about its upgraded product portfolio.

Karl Pichler, the chief financial officer of the company, reported on the picture for the future as he said the company had: “successfully enhanced our product and services portfolio while managing a rapidly growing business and building a better economic model.” On top of this, positive things were asserted for the future: “so far in 2012 increases our competitiveness in this massive cloud opportunity.”

Lanham Napier, CEO, touted Rackspace’s commitment to customer satisfaction by saying: “RackSpace offers a better, faster and more valuable cloud experience, built on an open platform that gives our customers true choice and control without the fear of being locked-in to one vendor’s technology.”

No outlook report was offered for the fourth and final period of the financial year; however, Wall Street is predicting another upturn with an increase to 22 cents per share with revenue of $358.1 million. With the boost to its range of products in webhosting and cloud technology, speculators predict a bright future for the blossoming open cloud company.

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