GeoEye third-quarter revenues grew 1.4 percent year-over-year to $87 million. Though that mark was 3.6 percent below the market’s consensus of $90.4 million, the imagery firm’s $43.4 million in adjusted EBITDA was 5.3 percent ahead of estimates. The adjusted EBITDA excluded $8.4 million in expenses related to mergers and acquisition activity.

GeoEye production jumped 31 percent in the 2012 third quarter compared to the same period last year to reach a company record $21.3 million, due primarily to strong demand for analytics services and an airport mapping contract. The company’s U.S. government revenues increased 7.6 percent from the same period last year.

Raymond James Analyst Chris Quilty notes that GeoEye’s government growth does not yet reflect the recent cancellation of the company’s EnhancedView contract with the U.S. National Geospatial-Intelligence Agency (NGA).

“Last week, GeoEye disclosed that the NGA intends to terminate its EnhancedView contract, effective Nov. 30, unless additional funds become available by December 15. GeoEye’s SLA agreement is currently valued at $150 million per year,” Quilty said in a research note.

DigitalGlobe’s acquisition of GeoEye remains on schedule to close in the later half of its 2012 fourth-quarter or early first quarter of 2013, pending approval from the U.S. Department of Justice. GeoEye expects merger-related expenses to total more than $12 million by the end of 2012.

“Given GeoEye’s pending merger with DigitalGlobe and the (admittedly remote) possibility that its EnhancedView contract could be extended, we are electing to maintain our 2012/2013 estimates at this time,” said Quilty. “Should the merger deal fall through, however, GeoEye’s adjusted EBITDA could plunge to break even on the loss of its SLA payments of $150 million per year and a partial loss of its production work, which was $76 million in 2011.”