Rackspace quarterly profit drops 30 percent

Reuters News
Posted: Feb 10, 2014 4:47 PM

(Reuters) - Web hosting company Rackspace Hosting Inc reported a 30 percent drop in quarterly profit as expenses rose and said CEO Lanham Napier retired, sending its shares down 13 percent in extended trading.

Net income fell to $20.8 million, or 14 cents per share, in the fourth quarter, from $29.9 million, or 21 cents per share, a year earlier.

Revenue rose 15.6 percent to $408.1 million.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Don Sebastian)