Orbimage Inc. said it expects revenues for 2005 to be between $50 million and $60 million, an increase of 62 to 93 percent from 2004 revenues. The company also expects its operating loss to be between $2 million and $12 million.
For the first full year of operations for the OrbView-5 spacecraft , Orbimage expects revenue to be between $350 million and $370 million, including approximately $158 million of deferred revenue associated with cost reimbursement under the National Geospatial-Intelligence Agency’s (NGA) NextView Program. The company expects capital expenditures on OrbView-5 to be about $474 million through the expected launch in 2007, including the estimated cost for launch insurance, for which NGA is providing $237 million.
Operating profits for the first 12 months of operations for OrbView-5 are expected to be between $198 million and $218 million, Orbimage said.
“Although the company has not historically provided guidance of this type, given the completion of a number of significant initiatives such as our recent equity financing as well as the positive reception from our current customers and other participants in the international imagery markets to our award of the NextView Second Vendor contract and the positive industry dynamics that have resulted from our receipt of that award, we believe that initiating guidance is appropriate at this time,” Matthew O’Connell, Orbimage president and CEO, said in prepared statement.
