NGA Contract Pays Off for GeoEye in Third Quarter
[Satellite TODAY 11-10-10] GeoEye’s ten-year EnhancedView contract from the U.S. National Geospatial-Intelligence Agency (NGA), worth up to $3.8 billion, helped produce strong results for the company during the 2010 third quarter, GeoEye announced Nov. 9.
The satellite and aerial geospatial information and services provider enjoyed 8.1 revenue gains to $86.5 million, compared to $79.9 million for the third quarter of 2009. GeoEye’s third quarter U.S. government contract revenue, which includes contributions from the NGA EnhancedView program, were $55.2 million and represented 63.9 percent of the company’s total revenues for the period.
The company posted a net loss of $6.5 million during the quarter compared to a net profit of $12.5 million a year earlier attributed to NGA contract bid expenses and development. However, GeoEye raised its full-year guidance from $323 million to a range between $325 million and $330 million, with adjusted EBITDA between $170 million and $175 million.
“The recent award of a 10-year EnhancedView contract provides us with excellent revenue visibility for the next few years. We are also pleased by the support of the financial community, as we were able to raise approximately $200 million in the past few months. [The financing] enhanced our financial flexibility and will enable us to continue to grow in the future,” GeoEye President and CEO Matt O’Connell said in a statement.