Rackspace Hosting 1Q net income up on higher sales

SAN ANTONIO — Cloud computing company Rackspace Hosting Inc. said its first-quarter profit rose from last year on higher sales, however the profits just met Wall Street expectations and costs were higher.

The company

The company, which provides remote, or "cloud" based, computing services to customers, said that while the quarter ended March 31, it earned net income of $23.2 million, or 17 cents per share, compared to $13.8 million, or 10 cents per share, in the prior-year period.

Revenue rose to $301.4 million from $230 million in the prior year period. Analysts were expecting $300.2 million, according to FactSet.