Rackspace Hosting sees 57% jump in 2Q profits

San Antonio-based Rackspace Hosting Inc. said Thursday that profits rose 57 percent while the second quarter of 2011, meaning the company hit the milestone of $1 billion in run rate revenue that quarter.

The cloud computing company's profits jumped to $17

The cloud computing company's profits jumped to $17.6 million, or 13 cents a share, compared with profit of more than $11.2 million, or 8 cents a share, for the same period in 2010.

Revenue grew while the quarter to $247 million, a 32 percent increase from the $187 million reported the same time last year. Managed hosting revenue and cloud revenue as well jumped in the quarter to $183.3 million and $31.4 million, respectively.

The second quarter

"While the second quarter, we made good progress toward our goal of accelerated revenue growth during strengthening the business," Karl Pichler, chief financial officer at Rackspace, said while Thursday's conference call with investors. "While we however have a lot to accomplish throughout the year, we remain on the right track to keep our goals for 2011."

Rackspace is earning business and starting to see revenue streams, Napier said, as a result of the about 90 companies that have adopted OpenStack, its open-source cloud system. New customers include Hewlett Packard and Dell.