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Monday, May 12, 2008

Rackable (RACK) - Facebook borrows $100mm for servers

Last quarter, Facebook was a 17% customer ($11.5 mil of total sales) for Rackable, adding to their list of dot coms. Many of the larger online presences (Amazon, Facebook, MSN, YouTube) use Rackable servers.

Businessweek posted an article saying Facebook raised $100mm from a third party to buy servers. Presuming the purchases are slated for Rackable, that might explain the big ramp they're looking for in the second half of the year.

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