GeoEye Report on Revenues, New Director & GeoEye-1

07 August 2007, 1:03pm

In a US Securities and Exchange Commission Form 8-K filing of 2 August, 2007, GeoEye, Inc. reported revenues for the three months ended June 30, 2007 and 2006 were $48.3 million and $35.1 million, respectively, and $85.1 million and $65.4 million for the six months ended June 30, 2007 and 2006, respectively. The increases for both periods were mostly attributable to an increase in deliveries of imagery and production services under contracts with the National Geospatial-Intelligence Agency (“NGA”) of $10.1 million for the second quarter and $16.6 million for the six month period. The remaining variance is attributable to increases and decreases across the Company’s other businesses, namely the inclusion of the operations of M.J. Harden Associates, Inc., which was acquired in March 2007, offset by the absence of revenue generated from the OrbView-3 satellite, which suffered an anomaly during the first quarter of 2007 and is no longer operational. Income from operations for the three months ended June 30, 2007 and 2006 were $25.7 million and $9.7 million, respectively. Income from operations for the six month periods ended June 30, 2007 and 2006 were $0.7 million and $13.3 million, respectively. The 2007 year-to-date results include a charge of $36.1 million associated with the loss of OrbView-3. Excluding this charge, income from operations for the six months ended June 30, 2007 would have been $36.8 million. The $23.5 million increase from the comparable 2006 period mainly consists of the $19.7 million increase in revenues described above and the absence of $5.9 million of depreciation expense in 2007 associated with the OrbView-3 satellite.

On August 2, 2007, at a regularly scheduled Board meeting, the Board of Directors passed a resolution electing Roberta E. Lenczowski to fill a vacancy and serve as a Director of the Company and its Subsidiary effective immediately. Previously, Ms. Lenczowski had a long and distinguished career as an executive of the National Geospatial-Intelligence Agency (“NGA”), most recently serving as NGA’s Technical Executive and West Senior Executive. After retiring from NGA, she formed Roberta E. Lenczowski Consulting in May 2005 serving a variety of clients and currently serves as a Board Director of EarthData International, Inc., TechniGraphics and Leonard Wood Institute and as an Academic Advisor for Sanborn Map Company, Inc.

While GeoEye continued to make progress toward completion of the GeoEye-1 satellite, and testing of the satellite and components continue. However, they have encountered some technical issues during the testing phase and are taking a deliberate and thorough approach to address and resolve these issues, which comprise mainly individual component and piece-part problems, not basic design issues. Having previously indicated a fourth quarter 2007 launch date for GeoEye-1, the effect of slower than anticipated progress on the satellite has resulted in not being able to accept a launch slot in this time frame. While the official launch manifest has not been released by Boeing, GeoEye-1 is believed to be fourth in line to launch, which means the launch could occur in the late first quarter or early second quarter 2008 time frame.
Source: Securities and Exchange Commission Form 8-K filing, 2 August, courtesy of GeoEye, Inc.
www.geoeye.com

www.geoeye.com

Geo: International