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DigitalGlobe Guidance Holds Steady Through Mixed Third Quarter

By | November 3, 2011
      [Satellite TODAY 11-03-11] After a slow start to the year, DigitalGlobe reported a 20 percent year-over-year increase in its 2011 third quarter backlog at $305 million compared with the same period last year, according to the imagery provider’s latest financial results issued Nov. 2.
         While DigitalGlobe’s third-quarter revenue increased 1 percent from the previous year to $81.3 million, the result failed to meet analysts’ consensus of $84.5 million, as did the company’s 16 percent EBITDA increase to $52 million against the forecast of $58.7 million.
         The company cited order delays and a one-time contract restructuring as the primary culprits of the setback, but added that its value-added services performance remained weak in the third quarter with a 45 percent decline due to lingering effects of the U.S. government’s 2011 budget resolution issues. DigitalGlobe management told reporters during a conference call that bid activity is picking up now that those budget issues have been “temporarily resolved.”
         Despite the lackluster quarter, DigitalGlobe affirmed its full-year 2011 revenue and EBITDA guidance and projected double-digit revenue growth in 2012. Analysts agreed with their own forecast, predicting strong sequential improvement for DigitalGlobe in the 2011 fourth quarter, followed by steady profit increases in 2012.    
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