Share “Rackspace shares skid as CEO leaves”

Rackspace shares skid as CEO leaves

Published on NewsOK Modified: February 10, 2014 at 4:54 pm •  Published: February 10, 2014

NEW YORK (AP) — Shares of Rackspace Hosting slid in aftermarket trading Monday after the computing company said CEO Lanham Napier had left.

Rackspace said Napier, 43, is also stepping down from its board of directors, but will continue as a consultant to the company for a few months. It said he is stepping away from leadership of public companies and plans to invest in and advise other companies.

Graham Weston, 49, will replace Napier while Rackspace looks for a long-term replacement. Weston is the company's co-founder, former CEO and its current chairman.

Napier had been CEO of Rackspace since 2006 and a director since 2001.

Shares of the San Antonio company, which provides data storage and other services for companies and groups, slid 10 percent to $36.20 in after-hours trading. It had closed regular trading up 85 cents, or 2.2 percent, at $40.36. The stock is down 45 percent over the past 12 months.

The company also said Monday that its fourth-quarter net income fell 30 percent, to $20.8 million, or 14 cents per share. Revenue rose 16 percent to $408.1 million.

Analysts expected net income of 14 cents per share and $404.7 million in revenue, according to FactSet.

For the year, profit fell 18 percent to $86.7 million, or 61 cents per share. Sales rose 17 percent to $1.53 billion.