GeoEye, Inc. (NASDAQ: GEOY), a leading source of geospatial information and insight, announced today results for its fiscal third quarter ended Sept. 30, 2011.

"While results for the third quarter were below our expectations, our core business continues to be strong," said Matt O'Connell, GeoEye's chief executive officer and president. "We renewed our Service Level Agreement with the National Geospatial-Intelligence Agency for another year, booked some significant new production orders and maintained strong margins. We have positioned the Company to resume growth from our government, international and commercial clients in the fourth quarter."

THIRD QUARTER RESULTS

Total revenues were $85.8 million for the third quarter of 2011, an 0.8 percent decrease from the third quarter of 2010. The net income available to common stockholders for the third quarter of 2011 was $11.7 million, or $0.51 per fully diluted share, compared to a loss of $6.5 million, or ($0.30) per fully diluted share, for the third quarter of 2010. Adjusted net income available to common shareholders (a non-GAAP measurement that excludes the impact of non-operating charges, gains and one-time charges and tax benefits) for the third quarter of 2011 was also $11.7 million, or $0.51 per diluted share, as compared to $13.6 million, or $0.61 per diluted share, in the same period in 2010.  

Operating profit was $23.8 million for the third quarter of 2011. Operating margin was 27.7 percent for the third quarter of 2011, compared to 33.7 percent in the third quarter of 2010. Adjusted EBITDA (a non-GAAP measurement defined as net income before interest, taxes, depreciation, amortization, non-cash recognition of stock compensation expense and other items) was approximately $43.7 million for the third quarter of 2011, compared to $47.4 million in the same period in 2010. The Adjusted EBITDA as a percentage of revenues was 50.9 percent for the third quarter of 2011, compared to 54.8 percent in the third quarter of 2010.

The Company ended the third quarter of 2011 with unrestricted cash, cash equivalents and short-term investments of $218.5 million; total assets of approximately $1.3 billion; stockholders' equity of $488.4 million and long-term debt of $510.3 million.

THIRD QUARTER 2011 OPERATING HIGHLIGHTS

Revenue Mix

• Imagery revenues in the third quarter of 2011 were $63.5 million, or 74.0 percent of total revenues. Production and other services revenues were $16.2 million, or 19.0 percent of total revenues. The NextView cost share accounted for revenues of $6.0 million, or 7.0 percent of total revenues.

Geographic Information

• Domestic revenues were $63.7 million for the third quarter of 2011, or 74.3 percent of total revenues for the period. International revenues were $22.1 million for the third quarter of 2011, or 25.7 percent of total revenues for the period.
• Domestic revenues increased 1.9 percent for the third quarter of 2011, compared to the same period in 2010. International revenues were down 7.8 percent for the third quarter of 2011, compared to the same period in 2010.

GeoEye-2 Capital Investments

• During the quarter, the Company invested $62.7 million for the continued development and construction of the GeoEye-2 satellite, including $12.1 million of capitalized interest. To date, the Company has invested $518.1 million in the GeoEye-2 satellite program, including $49.7 million of capitalized interest.

NINE MONTH RESULTS

Total revenues for the nine months ended Sept. 30, 2011, were $259.6 million, a 4.8 percent increase from $247.8 million in the nine months ended Sept. 30, 2010. The Company's Adjusted EBITDA for the nine-month period ended Sept. 30, 2011, was $131.4 million, a decrease of 1.3 percent from the same period in 2010. The net income available to common stockholders for the nine months ended Sept. 30, 2011, was $32.8 million, or $1.44 per fully diluted share, as compared to net income available to common stockholders of $6.4 million, or $0.29 per fully diluted share, in the same period in 2010.

FISCAL YEAR 2011 FINANCIAL OUTLOOK

For the full year, the Company is revising its previous revenue, Adjusted EBITDA and earnings per share guidance. Our new expectations for 2011 are for revenues to range from $348 million to $355 million, Adjusted EBITDA to range from $176 million to $181 million and earnings per share of $1.95 to $2.15.  In the fourth quarter, we anticipate sequential growth and expect revenues to be in the range of $88 million to $95 million.  

These estimates represent management's current expectations about the Company's future financial performance, based on information available at this time.

CONFERENCE CALL INFORMATION

GeoEye, Inc. (NASDAQ: GEOY) will host a conference call for investors and analysts to discuss financial results for the third quarter, which ended Sept. 30, 2011.

When: Tuesday, Nov. 1, 2011, at 8:30 a.m. Eastern Daylight Time

To Participate:

To participate in the call via phone, domestic callers may dial toll-free at (877) 776-4039. International callers may dial (631) 291-4808 approximately 10 minutes prior to the start time. Callers may identify themselves to the operator as GeoEye conference call participants or by using the conference ID: 10931966. Questions will be accepted from phone participants during the live call after prepared remarks and as time permits.  

The conference call will also be webcast on the "Investor Relations" section of the Company's corporate Web site, www.geoeye.com. To directly access the live webcast go to: http://geoy.client.shareholder.com/eventdetail.cfm?eventid=102870 and click on the "November 1, 2011 Investor Update Webcast" link. Please allow 15 minutes before the scheduled start time to register, download and install any necessary audio software.

Replay:

An audio replay of the third quarter conference call will be available through midnight Nov. 15, 2011, by dialing (855) 859-2056 and typing in the conference ID number 10931966.

An archived webcast of the conference call will be available at the same URL address approximately two hours after the conclusion of the call.

Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):

About GeoEye

GeoEye is a leading source of geospatial information and insight for decision makers and analysts who need a clear understanding of our changing world to protect lives, manage risk and optimize resources. Each day, organizations in defense and intelligence, public safety, critical infrastructure, energy and online media rely on GeoEye's imagery, tools and expertise to support important missions around the globe. Widely recognized as a pioneer in high-resolution satellite imagery, GeoEye has evolved into a complete provider of geospatial intelligence solutions. GeoEye's ability to collect, process and analyze massive amounts of geospatial data allows our customers to quickly see precise changes on the ground and anticipate where events may occur in the future. GeoEye is a public company listed on NASDAQ as GEOY and is headquartered in Herndon, Virginia with more than 700 employees worldwide. Learn more at www.geoeye.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, the words "anticipates," "believes," "estimates," "expects," "intends," "plans," "will" and similar expressions are intended to identify forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to growth, expected levels of expenditures and statements expressing general optimism about future operating results, are forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by our management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, but are not limited to, those described in "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010, which we filed with the Securities and Exchange Commission ("SEC") on March 15, 2011, and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2011 and June 30, 2011, which we filed with the SEC on May 10, 2011 and Aug. 2, 2011, respectively. Copies of all SEC filings may be obtained from the SEC's EDGAR Web site, http://www.sec.gov/, or by contacting: William L. Warren, Executive Vice President, General Counsel and Secretary, at 703-480-5672.