Despite growing revenues, Orbimage reported an increased net loss for the third quarter 2005.

Total revenues for the just completed third quarter were $11.2 million, up from $8.9 million in revenues reported in the third quarter 2004. Net loss for third quarter 2005 was $9.5 million, up from a net loss of $6.1 million recorded in the same period a year ago.

“While we are pleased that our third quarter 2005 revenues reached a record level, we are disappointed with the pace of our revenue increase this year,” Orbimage President and CEO Matthew O’Connell said in a statement. “Our revenues increased substantially on a year-to-year basis, but they have developed much more slowly than we had anticipated for a number of reasons.” A key reason for the slow revenue growth is delays in purchasing decisions by international customers pending the outcome of remote sensing industry consolidation that is underway, he said.

Orbimage’s expected revenues for 2005 will be about $40 million, “an improvement over 2004 but below the $50 million to $60 million range we had anticipated in May,” O’Connell said. He reiterated net loss guidance in the $12 million to $8 million range for 2005, including an expected $24 million in depreciation and amortization expenses.