Reuters: Global Markets: DigitalGlobe results beat Street, gets 2012 funds

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DigitalGlobe results beat Street, gets 2012 funds May 2nd 2012, 01:58 Tue May 1, 2012 9:58pm EDT (Reuters) - DigitalGlobe Inc (DGI.N), which supplies satellite imagery to U.S. intelligence agencies and others, posted better-than-expected quarterly results and said it will be fully funded under its contract with the U.S. National Geospatial-Intelligence Agency (NGA) for 2012. DigitalGlobe won $2.8 billion in ten one-year contracts from the NGA in 2010, but the contracts are subject to review. Moody's revised the company's outlook to negative in February, citing concerns that U.S. government cost cuts could lead to a loss in revenue. The company said in a statement its EnhancedView contract with the NGA had been fully funded for $250 million for the U.S. Government's fiscal 2012, although it had not received any news on funding for 2013. DigitalGlobe shares were trading up 9.3 percent after the bell, after earlier closing at $12.28 on the New York Stock Exchange. The stock has fallen from levels above $33 in late 2010. Defense officials have said a funding request for commercial digital imagery was sharply reduced in the fiscal year 2013 budget request, given funding constraints and imagery being delivered by new government-owned satellites. The Longmont, Colorado-based company said its first quarter result was helped by higher sales at its defense and intelligence segment, and it expected revenue to grow about 14 percent in 2012, up from a 10 percent forecast previously. This translates into revenue of about $387 million for fiscal 2012. Analysts, on average, were expecting $372.3 million, according to Thomson Reuters I/B/E/S. For the first quarter, DigitalGlobe posted net income of $3.8 million, or 8 cents a share, compared with a net loss of $1.3 million, or 3 cents a share, a year ago. Revenue rose 12 percent to $87 million. Revenue in its largest segment, defense & intelligence, grew 10 percent. Analysts had expected earnings of 1 cent a share, before special items, on revenue of $83.7 million. (Reporting by Andrea Shalal-Esa and Kartick Jagtap in Bangalore; Editing by Maju Samuel and Richard Pullin) Link this Share this Digg this Email Reprints

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