Cloud-computing firm Rackspace has reported a 11% rise in its second-quarter revenue, in addition to unveiling plans to increase its share buyback programme to $1bn.
Net revenue during the quarter was $489m, compared to $441.2m reported during last year’s corresponding quarter.
Net income increased 29.8% to $29.2m, or $0.20 diluted earnings per share, compared to $22.5m, or $0.16 diluted earnings per share, for the same period last year.
Rackspace said the $1bn buyback plan is in addition to the $200m it has already bought back. The company expects to complete a $500m buyback plan within six to nine months.
The company expects its third-quarter revenue to increase between 2% to 3.5% on a constant currency basis.
Rackspace president and CEO Taylor Rhodes said: "During the second quarter, we made progress on several key fronts, including with our 50 largest enterprise customers, whose spending with us is growing at more than twice the rate of our overall business."
"We expanded our managed cloud strategy by providing our expertise and Fanatical Support on Microsoft Azure.
"We’ve launched a major partnership with Intel to make OpenStack public, private and hybrid clouds easier to deploy, more scalable and more secure. And we continue to make progress toward building the market-leading managed services offer for customers on the AWS cloud."
The company has also partnered with Intel to create the OpenStack Innovation Center for accelerating the development of enterprise capabilities and increase the number of developers contributing to upstream OpenStack code.
Rackspace is facing stiff competition from Google, Amazon and Microsoft for cloud services.
