Rackable investors go gaga over stunning Q4
Up, up and away
Shares of Rackable Systems soared an astonishing 20 per cent in after-hours trading on word of the server maker's strong fourth quarter results.
Rackable posted fourth quarter revenue of $83.1m. That's a - wait for it - 262 per cent rise over the $23m reported in the same period last year. Net income reached $7.3m in the period versus a net loss of $14.3m last year. The server and storage seller has embraced a low-cost, no frills model and sold plenty of Opteron-based boxes in recent months.
Shares of RACK jumped 20 per cent at the time of this report to $37.12 in after-hours trading. Rackable investors have watched the stock rise at speed since an IPO at $12 per share last June.
"We are very pleased with our business execution and financial results," Rackable Systems president and CEO Tom Barton said. "We are particularly pleased with recent traction with our DC-powered offerings and our storage offerings."
Yeah, no kidding.
For the full year, Rackable pulled in $215m - a 96 per cent year on year increase, from $110m in 2004. ®