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DigitalGlobe revenue climbs, shares plunge

US: Satellite imagery company DigitalGlobe has reported its second quarter results for this year. The company’s revenue grew 12.8 percent to $178 million, which was better than what was expected. This included an increase of 18.4 percent in the US Government revenue and a 4.2 percent hike in diversified commercial revenue. However, what was surprising was that the shares of the geospatial products company fell by more than 14 percent after the news came out last weekend. Analysts believe that CEO Jeffrey Tarr lukewarm statement that accompanied the press release might have done some serious damage. Tarr said that while top-line growth may be somewhat moderated in the second half, the company still expects revenue to grow at a double-digit rate. He further elaborated that location-based services continued to show a year-over-year decline in sales.

Source: DigitalGlobe