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UPDATE 1-GeoEye says satellite hitch not to hurt revenue

Wed Jun 3, 2009 5:56pm EDT

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* Says no indication of issue spreading or worsening

* Shares up 9 percent

June 3 (Reuters) - GeoEye Inc (GEOY.O) said the previously announced problem with one of its satellites does not materially impact revenue and that even under the worst case, the impact will be less than 5 percent of projected revenue.

In May, the company said an issue with GeoEye-1 satellite caused a small area of an image to lack color when collected in a particular operating mode.

In a filing with the U.S. Securities and Exchange Commission, GeoEye said the issue does not affect the ground resolution or mapping accuracy of imagery.

The company also said the issue does not affect the ability of the satellite to continue to fulfil requirements for the National Geospatial-Intelligence Agency and other customers.

"The technical analysis is ongoing and currently points to a small segment of the focal plane electronics within the camera," the company said in the filing.

It said it has no indication that this issue will spread or worsen in any way.

Shares of GeoEye were trading up 9 percent at $23.97 after the bell. They closed at $22.09 Wednesday on Nasdaq. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Deepak Kannan)



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