Home Business Financial DigitalGlobe Q1 revenue up 19.6% buoyed by growth in US govt business

DigitalGlobe Q1 revenue up 19.6% buoyed by growth in US govt business

DigitalGlobe's_first_quarter_results
DigitalGlobe‘s first quarter results shows a surge in the company’s revenue by 19.6% at $209.7 million.

US: DigitalGlobe announced the company’s first quarter results on Tuesday evening. The result shows a surge in the company’s revenue by 19.6% at $209.7 million. It has also shown a significant growth in the U.S. government’s revenue by 25.4% at $28 million.

However, due to its ongoing merger process with MacDonald, Dettwiler and Associates (MDA), DigitalGlobe has not provided details of the earnings call but has provided supplementary information on the company’s Investor Relations Website.

The result also shows a growth of 9.7% in DigitalGlobe’s commercial revenue, soaring at $6.3 million,  as demand for capacity on WorldView-4 fueled due to 8.7% increase in DAP revenue.

“We delivered a strong start to 2017 with solid revenue growth across all of our major customer groups,” said Jeffrey R. Tarr, CEO, DigitalGlobe.

“We achieved our highest revenue quarter- to- date in our Direct Access Program and delivered doubl- digit growth in our commercial business. We will continue to focus on the execution of our strategy while satisfying all closing conditions for our upcoming combination with MDA,” said Tarr further.

However, the company registered a net loss of $2.2 million as compared to $8.6 million in the previous year. The primary reasons given by the company are due to merger costs, lower capitalized interest and incremental depreciation as a result of placing Worldview-4 in service. DigitalGlobe has also registered a net income margin decline to 1.0% and adjusted EBITDAis at $95.5 million.

The company is hopeful to conclude the merger with MDA by the second half of 2017.