San Antonio, Texas – (The Hosting News) – January 31, 2006 – Dedicated server company, Rackspace Managed
Hosting, has published its continuing operations fourth quarter and
year-end results for 2005. The company’s revenue was $41 million in
the fourth quarter of 2005 and $139 million for the year, representing
a 58 percent increase over the fourth quarter of 2004 and a 60 percent
increase over 2004 annual revenues.
According to the company,
Rackspace grew its
net income by 129 percent, to 11 million, in 2005.
Rackspace adopted Economic Value Added (EVA) in 2005 to focus the
company on creating sustainable shareholder value. The company’s EVA
for fourth quarter 2005 was $2 million and $6 million for the year.
Lanham Napier, president, Rackspace Managed Hosting commented on the results, ”Rackspace achieved a significant milestone in 2005, surpassing
the $100 million mark in revenue and begins 2006 with a strong
financial position and a loyal customer base that grows with us month
over month. The secret to our success is our delivery of Fanatical Support to
our customers. As we continue our mission to make hosting an excellent
service experience for all enterprises, we’re gaining market share
against players like IBM, Savvis and AT and T.”
Rackspace added more than 600 new customers in the fourth quarter
of 2005 and more than 2,000 new customers for the year. To support the
company’s rapid growth, Rackspace added 250 employees in 2005 and
plans to hire up to 400 more in 2006 across all areas of the company
including sales, support and data center operations.
Mr. Napier added that it is Rackspace’s “fanatical” company culture which drives the success of the company, ”First and foremost we look for a great service attitude and then
leverage the individual strengths of each employee to allow them to do
what they do best everyday. The result is happy, engaged employees
fueling company growth of more than 50 percent a year.”
To learn more about Rackspace Managed Hosting, please visit: www.rackspace.com.