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Rackspace's fourth quarter on target; Equinix, Savvis top estimates

Rackspace's quarter was in line with expectations as the hosting and cloud services company continued to add customers. The Rackspace results complete a trio of reports from data center hosting companies. Equinix and Savvis also reported this week.
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Written by Larry Dignan on

Rackspace's quarter was in line with expectations as the hosting and cloud services company continued to add customers. The Rackspace results complete a trio of reports from data center hosting companies. Equinix and Savvis also reported this week.

Rackspace reported fourth quarter earnings of $13.5 million, or 10 cents a share, on revenue of $214.7 million, up 26.7 percent from a year ago. Earnings were in line with estimates. For 2010, Rackspace reported earnings of $26.4 million, or 35 cents a share, on revenue of $780.5 million.

The company said that fourth quarter managed hosting revenue was $183.3 million with cloud sales of $31.4 million. Total servers were 66,015, up from 64,996 at the end of the third quarter. Rackspace ended the year with 130,291 customers.

With Time Warner Cable buying Navisite and Verizon scooping up Terremark, all eyes are on hosting companies. Bottom line: The big telecom carriers are going shopping to build out cloud services. What's telling about the hosting companies is how much they look alike by the sales figures.

On a related note, Equinix, another hosting provider expected to be in play, topped estimates Wednesday with fourth quarter with earnings of $13.76 million, or 29 cents a share, on revenue of $345.2 million. For 2010, Equinix reported earnings of $36.88 million, or 82 cents a share, on revenue of $1.22 billion.

And on Tuesday, Savvis topped estimates, but reported a loss. Savvis' fourth quarter loss was $2.95 million, or 6 cents a share, on revenue of $252.7 million. For 2010, Savvis lost $53.9 million, or 98 cents a share, on revenue of $932.9 million.

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