Original URL: http://www.theregister.co.uk/2006/02/03/rack_soars/
Rackable investors go gaga over stunning Q4
Up, up and away
Posted in Servers, 3rd February 2006 02:57 GMT
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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 [1].
"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. ®