Archive for the ‘GeoEye Inc. GEOY’ Category

GeoEye Inc. (GEOY) Signs Deal to Provide Imagery to Google

Friday, August 29th, 2008

GeoEye Inc. (GEOY) is the premier provider of geospatial information for the national security community, commercial customers, and strategic partners to help them better map, measure, and monitor the world. The company is recognized as the industry’s trusted imagery expert for delivering reliable service and the exceptional quality of its imagery products and solutions. In addition, GeoEye operates a number of Earth imaging satellites, mapping aircraft, and an international network of ground stations.

GeoEye recently announced that it will provide imagery from its new $502-million, high-resolution GeoEye-1 satellite to Google Earth and Google Maps after the spacecraft is launched on September 4th. If all goes well with the launch, GeoEye’s new satellite will be the world’s highest -resolution commercial Earth-imaging satellite. The new satellite will offer images at 0.41 meters resolution in black and white and 1.65 meters in color.

GeoEye, which went public in September 2006, has expanded dramatically over the past five years, quadrupling its work force and reporting large revenue and profit increases. The company’s shares have slumped in recent months on the delay in the launch of their GeoEye-1 satellite, which was originally scheduled to be launched in April 2008. GeoEye CEO Matthew O’Connell said that the launch of GeoEye-1 should help spur new US-government orders from the Pentagon and elsewhere. Mr. O’Connell predicted strong growth over the next five years, bolstered by growing commercial and government demand globally for satellite imagery.

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GeoEye Inc. (GEOY) is “One to Watch”

Wednesday, July 2nd, 2008

GeoEye is focused on providing satellite and aerial imagery, geospatial information, geospatial products, and solutions to the national security community, strategic partners, and commercial customers. The information the company provides is a crucial asset to several industries including intelligence, defense and security, air and marine transportation, oil and gas, environmental monitoring, online mapping, insurance and risk management, urban planning and emergency preparedness.

In order to continue providing the best-in-class solutions, GeoEye is preparing for the launch of GeoEye-1, which has been designed to be the globe’s most accurate, highest-resolution commercial Earth imaging satellite. This advanced satellite will be able to take images with a ground resolution of just 16 inches!

With such huge potential, and analysts saying things like, “The successful launch of the satellite should lead to a 170 percent rise in the company’s earnings before interest, taxes depreciation and amortization on revenue growth of 50 percent in 2009,” one would expect the price to appreciate in anticipation of the launch date. Instead the opposite is true, providing a unique opportunity to investors interested in the satellite-based earth imagery industry.

An investor should use discretion, however, as an unsuccessful launch could result in a dropping share price. Nevertheless, it is important to note that the company has had a success launch rate of 95% or higher, so the possibility of an unsuccessful launch is small. According to the company, the satellite will be shipped to Vandenberg Air Force Base for its August 22, 2008, launch on a United Launch Alliance Delta II vehicle provided by Boeing Launch Services (Huntington Beach, Calif.).

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GeoEye, Inc (GEOY) – Tepid Q1 Financial Results may Hide Value

Tuesday, May 27th, 2008

GeoEye, Inc (NASDAQ: GEOY) is the premier provider of earth imagery solutions to national security customers, resellers, and commercial and strategic partners. These customers use GeoEye products to provide military and national security analysis, urban planning, environmental monitoring (oceans, forests and other agricultural analyses), and fish and wildlife monitoring. The company provides its data through two satellites, two airplanes, and several network stations. It also boasts extensive data analysis capabilities.

In early May, the company released Q1 2008 financial results and discussed them in a related conference call. While actual revenue beat estimates by around $1 M, earnings were somewhat lower than expected due mainly to onetime items (hedging securities, and arbitration award) and unforeseen events (NOL disagreement with IRS). The stock had been trending lower, possibly due to the unknown effect of the NOL dispute.

While the Q1 2008 stock results reflected a challenging environment, there are bright spots that investors might consider. For instance, in August the company plans to add another satellite to its stable. This addition is well-timed because the other two satellites are approaching the end of their design lives. Dubbed GeoEye-1, this will be the highest resolution, commercial satellite in existence. During the conference call, the CEO implied that there have been inquiries from prospective customers about the company and its new satellite. Some of these potential customers appear to be those of its major competitor, Digital Globe. Since this is a high, fixed-cost business, the additional revenue will be welcome to offset the high fixed costs.

A second issue is that the company’s management does not communicate well with investors, possibly contributing to the lowering share price. Communication with the investment community always poses a dilemma to management. On the one hand, management wants to manage the company, not investor expectations. On the other, while these same executives realize that investors deserve a forthright explanation of company results and strategy, they often fail to follow through.

Here are a few examples of GeoEye, Inc’s poor communication: The Q1 management call was announced on the same morning as the actual call (rather than being announced a few days earlier), so there is no doubt several investors could not attend the call and ask questions. A second point: one investor noted that since GeoEye, Inc’s two satellites are fully depreciated, the company is trading under book value and asked why the company could not trumpet that fact. The conclusion is that improving corporate communication could improve the investment community’s understanding of the company and increase its share price.

Despite GeoEye, Inc’s tepid Q1 2008 results, which lowered its share price, it could be considered undervalued at this time. Its pending satellite launch could lead to new sources of revenue. The additional revenue, coupled with improved management communication of company results, may increase its value in the future.

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GeoEye Inc. (GEOY) to Launch Satellite August 22nd

Wednesday, May 14th, 2008

GeoEye, Inc. (GEOY) is a provider of space-based and aerial imagery, and geospatial information through both high and low resolution imagery, imagery-derived products, and image processing services to customers worldwide. The company operates a constellation of Earth imaging satellites, along with mapping aircraft, and also has an international network of ground stations.

GeoEye’s imagery information products enable customers to map, measure, and monitor the earth. The company has a number of both foreign and domestic customers and these include both private companies and government agencies. Some of the applications for their imagery include: national security, intelligence gathering, homeland defense, precision mapping, construction planning, environmental monitoring, national disaster assessment, oil and gas and mining exploration, and a host of other applications. The company is recognized as the industry’s most trusted imagery expert for delivering reliable service and exceptional quality. In fact, GeoEye is considered to be the premier provider of geospatial information for the national security industry.

GeoEye announced an August 22, 2008 launch date for its very important, next-generation earth imaging satellite, GeoEye-1. The company finalized this launch date with Boeing Launch Services in an amendment to the original agreement, which was signed on May 7, 2008. Once launched, the GeoEye-1 satellite will be the world’s highest resolution and most accurate commercial imaging satellite. This will continue to give them a leadership position in this niche industry.

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