UPDATE: Rackspace Q3 Profit Rises 36%

Rackspace Hosting RAX reported a 36% rise in its third-quarter profit. Rackspace's quarterly profit surged to $27.2 million, or $0.19 per share, from $20 million, or $0.14 per share, in the year-ago period. Its revenue rose 27% to $336 million, while revenue from its public-cloud business surged 57%. Rackspace's operating margin rose to 13.5% from 11.7%. Rackspace shares closed at $66.08 yesterday.