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DigitalGlobe profit rises with growing demand for satellite images

US: DigitalGlobe posted better-than-expected quarterly results and raised its full-year sales forecast for the third time this year on increased sales of its satellite images to businesses and US intelligence agencies.

Third quarter 2012 revenue was USD 107.2 million, up 31 per cent compared with the same period last year. Net income in the third quarter was USD 8.5 million, or USD 0.18 per share, compared with net income of USD 1.1 million, or USD 0.02 per share in third quarter 2011. Third quarter 2012 EBITDA was USD 44.9 million, delivering an EBITDA margin of 41.9 per cent, up approximately 210 basis points year over year compared with the third quarter 2011 EBITDA margin of 39.8 per cent . Third Quarter EBITDA margin expanded compared with the year-ago period despite incurring USD 7.5 million of non-recurring costs in connection with the recently announced combination with GeoEye.

“We are delighted to deliver our fourth straight quarter of double-digit revenue growth,” said Jeffrey R. Tarr, President and Chief Executive Officer. “Combined with continued strong growth in our 12-month backlog, our results this quarter are evidence of our progress transforming DigitalGlobe into a high-growth, scalable, recurring revenue information business. In addition, we expect to close our combination with GeoEye late this year or in the first quarter of 2013. We look forward to delivering on the substantial benefits of this strategic transaction to our customers, shareholders and other key stakeholders,” Tarr added.

Revenue in its commercial business jumped 57 per cent to USD 26.1 million in the third quarter, while the defence and intelligence business grew 24 per cent to USD 81.1 million.

DigitalGlobe said it won contracts with the Indian government and SAAB Ab and expanded its location services contract with AutoNavi Holdings Ltd during the third quarter.

The company”s 12-month backlog increased to USD 366.2 million, up 20 per cent year over year, indicative of the company”s success in shifting its revenue mix to a more visible recurring model.

It expects revenue growth of 18 to 21 per cent for the full year, up from its earlier view of 16 per cent growth.

Source: DigitalGlobe & Reuters