DigitalGlobe Reports First Quarter 2010 Results

DigitalGlobe (NYSE:DGI), a leading global provider of commercial high-resolution earth imagery products and services, today reported financial results for the first quarter ended March 31, 2010.

First quarter 2010 revenue was $77.1 million, an increase of 14.7% compared with the same period last year. First quarter 2010 net income was $1.5 million, or $0.03 per diluted share, compared with net income of $10.6 million, or $0.24 per diluted share, for the same period last year. First quarter 2010 Adjusted EBITDA, a non-GAAP financial measure, was $43.6 million, compared with first quarter 2009 Adjusted EBITDA of $40.5 million.

“We are pleased with our first quarter results. Our double-digit top-line growth was driven by strength across both the defense and intelligence and the commercial segments. The addition of WorldView-2 to our constellation has effectively doubled our collection and refresh capabilities, enabling us to reliably meet the growing demands for rapid, large scale collection across all markets,” said Jill Smith, Chairman and Chief Executive Officer. “Additionally, the unique multi-spectral capabilities of WorldView-2 and our expanding web services and cloud offerings mean that we can move beyond imagery to deliver information and insight products that help solve our customers’ problems. As a result, we remain confident in our growth outlook for 2010 and beyond.”

First Quarter Business Highlights

• Defense and Intelligence segment revenue was $62.6 million, up 9%, driven primarily by the company’s Direct Access Program (DAP). The company brought a second DAP customer into operation in the quarter, and a third in April. The company expects its fourth DAP customer to be operational by the third quarter of 2010.
• Commercial segment revenue was $14.5 million, up 46%, driven by strength in consumer and international civil government, and a rebound in indirect sales through resellers.
• The company effectively doubled its collection and refresh capabilities with the addition of WorldView-2 to the constellation and added unique 8-band multi-spectral capabilities.
• The ImageLibrary surpassed 1 billion square kilometers, more than one-third of which is less than one year old.
• The company expanded its web services and cloud computing offerings with the launch of its European node to support customers in the region. The company expects to launch an Asian node later this year.

Full-Year 2010 Outlook

The company reaffirmed its full-year 2010 outlook:

• Full year 2010 total revenue is expected to be between $330 million and $360 million.
• Full year 2010 diluted earnings per share are expected to be between $0.25 and $0.55.
• Full year 2010 Adjusted EBITDA is expected to be between $185 million and $210 million.
• Capital expenditures for 2010 are expected to be between $30 million and $35 million.

Conference Call Information

DigitalGlobe’s management will host a conference call today at 5 p.m. EDT to discuss first quarter 2010 results.