Westminster-based DigitalGlobe on Thursday reported third-quarter revenue of $173 million — a year-over-year growth of 12.1 percent — net income of $9.6 million and operating cash flow of $51.5 million.
The performance stands in , when the company posted and a net loss of $1.8 million. However, CEO Jeffrey Tarr said several strategic shifts still are necessary for DigitalGlobe,
one of the world’s leading providers of high-resolution Earth satellite imagery to both commercial and governmental intelligence customers.
The bottom line on the government side of the business is healthy, but some of the company’s commercial aspirations are taking “longer than expected” to reach, Tarr said, pointing fingers at oil and gas prices, competitive market growth and slower-than-expected demand in some global regions.
But perhaps the company’s greatest albatross is the creation of custom industry-specific data for commercial customers: It’s costly, has a low return on investment, and simply has to go, Tarr said during a conference call with analysts.
“We are dialing back vertical investments in favor of a more scalable horizontal approach,” he said. “We believe that over time (this) will allow us to reach newer customers and be the undisputed provider of information for our changing planet.”
DigitalGlobe employs 1,256 people — about 1,200 in Colorado — and about 380 contractors across eight locations worldwide.
Earlier this month the company , or about 2 percent of its workforce, and an unspecified number of contractors. An .
Both rounds of layoffs are attributed to a “strategy shift” to better manage costs and allow company growth, chief human resources officer Grover Wray told The Denver Post on Oct. 15.
Tarr offered more insight into this strategy during the earnings call: a five-point plan that includes better utilization of DigitalGlobe Intelligence Solutions — the federal government’s eyes on the world — and the development of a new satellite to replace the aging WorldView-1 and WorldView-2 birds.
And programs like are expected to grow, he said.
GBD harnesses the power of the images captured daily from DigitalGlobe’s fleet of satellites, which cover about 2 million square miles and .
“This is a high-growth business from a small base,” Tarr said. “It’s attracting startups and technology customers that haven’t prior used DigitalGlobe’s services.”
On Monday, the first big project using GBD was announced: the , system, which is somewhat like air traffic control for unmanned aerial vehicles or drones. That system is currently being evaluated by the Federal Aviation Industry and NASA.
Laura Keeney: 303-954-1337, lkeeney@denverpost.com or @LauraKeeney
