 |
 |
The time now is Thu 23 01 28 Nov 2024 |
 |
|
|
| Topic Review |
| hanhdxc754 |
OpenStack backer Rackspace suffered worse than expected earnings in the first quarter of its financial year, sending shares in the company tumbling.
While revenues for the cloud company were up 20.2 per cent to $362 million (£235.2 million) and net income grew 17.6 per cent to $27 million (£17.5 million), the results were not good enough for Wall Street. Shares fell more than 15 per cent in after-hours trading.
Analysts laid the blame for missed revenue targets on last February's price cuts centred on Rackspace's cloud and content delivery network (CDN) services. The firm has been playing catch up with Amazon Web Services and Microsoft's Azure price war.
Rackspace chief financial officer Karl Pichler admitted that the company "got off to a slow start for the year" in its earnings release. He said that while the company needed to build a lasting,Beats Sverige, successful business there was also a more immediate need to restore growth.
Chief executive Lanham Napier said that Rackspace has been focused on transitioning its business to OpenStack but not as much on its much larger hosting business. Napier echoed Pichler's comments saying that the firm is in the cloud for the long haul and predictions on how this would work out quarter after quarter were tough,beats solo hd.
"It looks to us like OpenStack has reached a tipping point in the market," Napier said,Beats by dre. "Clearly OpenStack has reached a level of acceptance that is appealing to enterprise customers."
Jason Luce,beats by dre, Rackspace's finance vice president said that he expected second quarter sales to be in the range of $369 million (£239.7 million) to $375 million (£243,billig beats.6 million). He also said that Rackspace would continue to engage Amazon and Microsoft in a price war.
"Don't be surprised if we are continually lowering prices on certain products," he said. "We are a cost-plus shop."
|
|
|
 |
|
 |
|
