Aviation Week is reporting that the National Geospatial-Intelligence Agency (NGA) may be forced to renegotiate the EnhanceView contract with GeoEye and DigitalGlobe due to an expected $50 Million cut to the agency's 2012 fiscal year budget with the prospect of more cuts in fiscal 2013. The original EnhancedView contract was $7.3 billion over 10 years and was signed in 2010. The contract was roughly split between the two commercial satellite providers. According to a source cited by Aviation Week:
“You’re going to have to find a way to probably restructure the current service-level agreements with both companies if they’re going to take $50 million out,” says one geospatial-intelligence industry official familiar with EnhancedView. “Any reduction in the budget on the service-level agreement means you’re changing the scope of the contract and you have to renegotiate.”
Last week we reported that NGA was going to procure less imagery in 2013 but that Pentagon investments in new spacecraft would continue.
by Joe Francica on 02/02 at 11:38 AM |
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The Motley Fool, the finance and stock watching publication, has been watching the commercial, earth observing satellite providers GeoEye (GEOY) and DigitalGlobe (DGI). So has that other financial publication, Barrons.
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by Joe Francica on 01/19 at 10:34 AM |
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In a letter to Defense Secretary Leon Panetta and National Intelligence Director James Clapper and twelve members of Congress ask for continued funding for the EnhancedView satellite program. Current cuts could damage it and unfund the work of GeoEye and DigitalGlobe.
- BusinessWeek
by Adena Schutzberg on 11/29 at 05:28 AM |
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Per Wall St. Cheat Sheet via DealReporter:
GeoEye (NYSE:GEOY) is claiming its sale process has been suspended, ...
Best I can tell that means sale of the whole comapny, not necessarily just MJ Harden which was apparently pondered for sale separately. The stock took a 6% dive after the news of the sale end came out yesterday.
by Adena Schutzberg on 11/15 at 05:32 AM |
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Further complicating GeoEye’s 2011 picture is the performance of its M.J. Harden aerial-imagery unit, which depends in large part on contracts from state and local governments whose budget picture is in some cases even worse than that of the U.S. federal government.
Dulles, Va.-based GeoEye said it is reviewing the costs associated with the M.J. Harden operation and may ultimately decide to sell it.
That's the word from a conference call with investors after the company announced earnings on Tuesday (press release).
- Space Daily
by Adena Schutzberg on 11/03 at 05:17 AM |
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