[Satellite Today 08-15-08] GeoEye Inc. restated its financial reports for 2005, 2006 and 2007.
    According to GeoEye, auditors discovered that the company’s overstated imagery sales in 2007, incorrectly included cost-share payments received from the U.S. Government under the NextView program in its taxable income and reported timetable inaccuracies on its 2007 form 10-K.
    As a result, the company said it will include previously unrecorded expenses for interest and penalties on unpaid taxes, which will reduce the company’s net income for 2005, 2006 and 2007 and create a deferred tax asset and corresponding liability.
    The expected amounts to be restated are: $26.3 million for 2005, $10 million for 2006 and  $33.1 million for 2007.
    GeoEye also reported second quarter 2008 revenues of $34.2 million as compared to $48.3 million for the second quarter of 2007. The company saw a decrease in income from operations – $5.3 million as compared to $25.7 million for the second quarter of 2007. Net Income for the second quarter of 2008 was $2.4 million vs. a restated $11.2 million net income for the second quarter of 2007. Net income for the second quarter of 2007 was restated down by $12.2 million from $23.4 million for tax purposes.
    The company attributed revenue and net income loss to a reduction in orders from the U.S. National Geospatial-Intelligence Agency.