Rackspace says its revenue was $96.2 million in the third quarter of 2007, representing a 63 percent increase over the third quarter of 2006. Rackspace also reported a positive net income for the third quarter of 2007 and has experienced 35 consecutive quarters of revenue growth since the company's inception.

In the third quarter of 2007, Rackspace also completed its acquisition of Webmail.us and together the companies have launched a new mail hosting division to create innovative new products focused on enterprise-class mail functionality.

"We continue to post strong growth numbers across all areas of our business as we invest in new technologies and services for our customers worldwide," says Lanham Napier, president and CEO of Rackspace. "We credit our success to Rackspace's focus on Fanatical Support and the value it brings to our customers. We will continue to respond to customer demand to transform traditional IT functions into services consumable via the Web, with managed mail as the first product in our portfolio."

Rackspace has also recently extended its contract with social networking site, VOIS.