San Antonio, Texas – (The Hosting News) – September 15, 2006 – Managed hosting services company, Rackspace Managed Hosting, has released its second quarter and first half of the year results for 2006. The company’s revenue was $52.0 million in the second quarter of 2006 and $97.8 million for the first half of the year.
The results represent a 59.5 percent increase over the second quarter of 2005 and a 58.8 percent increase over revenues in the first half of 2005. Rackspace also reported positive net income for both the second quarter of 2006 and the first half of the year. The company has experienced 30 consecutive quarters of revenue growth since its inception.
Rackspace signed more than 1,100 new customers in the second quarter of 2006, with much of the growth attributed to an increasing number of Software-as-a-Service providers who rely on Rackspace to deliver a secure, reliable and scaleable infrastructure on which to deliver on-demand software to end users.
Major Horton, Chief Financial Officer of Rackspace Managed Hosting remarked, ”Rackspace continues to achieve strong financial performance, growing significantly faster than the industry and increasing its market share. More businesses are realizing the cost benefits and value provided by hosting their IT infrastructure and turn to Rackspace for enterprise-class managed services delivered with the company’s award-winning Fanatical Support.”
To support the company’s rapid growth, Rackspace added 105 new employees in the second quarter of 2006 and plans to hire up to 200 more during the remainder of the year. The company was recently named among the top 50 Best Small and Medium Companies to Work for in America, ranking number 17 in the medium-sized company category.
A global managed hosting provider, Rackspace Managed Hosting is a service organization delivering enterprise-level web infrastructure and managed services to businesses of all sizes. Serving more than 10,000 customers across six data centers worldwide, Rackspace integrates the industry’s technologies for each customer need and delivers it as a service via the company’s award-winning ”Fanatical Support.” Through trusted partnerships with its customers, Rackspace serves as an extension of their IT department, enabling customers to focus on their core business. Founded in 1998, Rackspace has grown more than 50 percent a year since the company’s inception.
To learn more about Rackspace, please visit: www.rackspace.com.