Feeds

Rackspace cages lackluster IPO

Your financial future looks cloudy

Secure remote control for conventional and virtual desktops

Rackspace appears to have a knack for ill-timed IPOs.

Shares in the hosting company dropped as much as 19 per cent during their debut on the New York Stock Exchange. And, at the time of this report, RAX - at $11.37 per share - was still sagging below the IPO price of $12.50 per share, which was already at the low end of an expected $12-$16 per share range. Still, the San Antonio-based Rackspace has raised more than $100m by going public and plans to use that infusion to fuel growth.

Rackspace, which hosts The Register's hardware, once looked to go public in 2000. Bad timing indeed as the technology meltdown shattered the hopes and dreams of any company linked to the internet build out. So, Rackspace pulled the IPO plans in March of 2001.

This time around Rackspace finds itself in the midst of another internet build out. The likes of Google, Microsoft, Yahoo!, Amazon and Facebook receive tons of attention for their voracious data center appetites.

But much of the enthusiasm for this service provider-led push has been drowned out by larger economic issues. So, it would seem, people can only get so excited about a company that offers some cages and cloudy-like storage services.

Documents lodged with the US Securities and Exchange Commission show Rackspace turning a profit over the past five years. During the quarter ended March 31, Rackspace posted revenue of $120m and a profit of $5.4m. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?