I can’t believe I am even typing this sentence: GeoEye-1 will be launching in 2 days!

That’s right, after the market closed tonight, GeoEye, Inc. (NASDAQ: GEOY), a provider of space-based and aerial imagery and geospatial information, announced that because Hurricane Hanna has changed course, they were able to meet their needs for additional personnel from the east coast, and as a result, will be launching this Saturday, September 6th from Vandenberg Air Force Base (VAFB).

This all comes after GeoEye confirmed on Friday August 29, 2008 that the final checks have been made and that all systems were a go for the previous September 4th, 2008 launch of GeoEye-1, which was delayed from August 22nd.

New to the GeoEye story?

• Read my initial buy recommendation here.
• or listen to my EXCLUSIVE interview with GeoEye’s management team here.

Click here to read my complete GeoEye research report

GeoEye-1 Launch: Are We There Yet?

It sure looks that way!

Although GeoEye didn’t update this in their latest press release, the original launch time was scheduled for 11:50:57 a.m. PDT (2:50:57 p.m. EDT), and it looks like this launch will occur around the same time.

You’ll recall that the initial delay from August 22nd to September 4th was because of problems with equipment related to the launch and GeoEye’s launch partner United Launch Alliance (”ULA”, a joint venture between Boeing (NYSE:BA) and Lockheed Martin (NYSE: LMT).

You can read more about this delay and why it occurred here.

Then, earlier this week, the launch was further delayed as a result of Hurricane Hanna breathing down Florida’s neck where ULA personnel are stationed that are responsible for the launch of GeoEye-1.

You can read all about that fiasco here.

The bottom line for us?

All of that doesn’t matter anymore.

The launch has been confirmed for Saturday, and unless Hurricane Ike picks up speed and reaches the Florida coast much quicker than it is expected to, which is sometime early next week, we’ll be able to get this bird up in the air once and for all.

When GeoEye-1 does launch, you can follow the launch in real-time on GeoEye’s website here:

http://launch.geoeye.com

Don’t Count Them Chickens…

Been there, done that

We all know that this date, even less than 48 hours away, can be changed, so I won’t start holding my breath until we are in the final countdown for launch, but I believe that the smart folks with the Air Force and ULA understand the possible paths and strengths of the oncoming Hurricanes and would not have scheduled this launch so close to another possible Hurricane landfall if they did not believe that the launch could get completed successfully while still allowing the launch crew to get back to the East coast before the next possible storm arrives.

Then again…

More info about GeoEye-1, Launch

GeoEye-1 will be lifted into a near-polar orbit by a 12-story-tall United Launch Alliance Delta II 7420-10 configuration launch vehicle, pictured at right.

The Delta II rocket is expected to deploy the GeoEye-1 satellite approximately 58 minutes after liftoff and will reach its proper orbit about 90 minutes after launch.

Speaking of tight timing, in order to achieve the proper orbit, the launch window will only be open for 84 seconds.

The success of these types of launches is over 98.5%.

Needless to say, everything will have to be performed to perfection, but that’s one of the reasons why launches are handled by so few companies and why it takes so long to secure a launch date.

Once in orbit, GeoEye-1 will undergo system calibration and testing designed to ensure that the equipment is working as it should be, and can produce usable imagery.

This process usually takes about 45-60 days, and before GeoEye can begin selling its imagery to the US government via the National Geospatial-Intelligence Agency (NGA), they will need to get approval from the NGA that the images meet their strict criteria and guidelines for usable imagery.

GeoEye then expects to be able to offer imagery and products to customers in the mid- to late-October timeframe, and that includes Google (NASDAQ: GOOG).

You can read all about GeoEye’s exclusive deal to sell GeoEye-1 imagery to Google here.

GeoEye-1 is designed to take color images of the Earth from 423 miles (681 kilometers) in space and will be moving at a speed of about four-and-a-half miles (seven kilometers) per second, and make 15 earth orbits per day.

With the ability to revisit any location on the globe every three days, and at lesser resolution more frequently, GeoEye-1 will enable customers to receive imagery updates on a regular basis and will be ideal for large-scale mapping projects.

This capability will benefit a broad array of industries including national defense and intelligence, online mapping, state and local governments, environmental monitoring and land use management, oil and gas, utilities, disaster management, insurance and others.

Once launched, GeoEye-1 will have the highest resolution of any commercial imaging system, 0.41-meters or 16 inches for panchromatic (black and white) imagery and multispectral (color) imagery at 1.65-meter resolution.

The highest resolution is the equivalent of being able to see home plate on a baseball field from space.

In addition, GeoEye-1 will be able to map the location of an object that size to within about nine feet (three meters) of its true location on the surface of the Earth without need for ground control points.

However, due to U.S. Government licensing restrictions, commercial customers will have access to imagery at half-meter ground resolution.

Together, GeoEye’s IKONOS and GeoEye-1 satellites can collect almost one million square kilometers of imagery per day and provide GeoEye with a “constellation” of multiple satellites that are of a high resolution variety which further enhances GeoEye’s imagery capacity.

Finally, you can listen to an interview with GeoEye’s VP of Marketing and Communications, Mark Brender speaking about the launch on NPR here. It’s definitely worth a listen:

http://www.npr.org/templates/story/story.php?storyId=94110470

Bottom Line

The manner with which this launch date was provided leads me to believe that all parties involved understand what is at stake.

GeoEye has been trying to launch this sucker for about 1 year, while ULA has repeatedly bumped the launch for one reason or another, good or bad.

There was probably some strong arm wrestling going on here, and if I had my guess, it’s that ULA was sick and tired of GeoEye bugging them about delayed launches, and are doing everything in their power to make sure they get GeoEye-1 up and running as quickly as possible.

The countdown has officially started now.

When Saturday afternoon comes around, pop open your Internet browser, sit back and watch the launch.

Then we can start focusing our attention on what really matters where GeoEye is concerned: namely, the increased revenue and profit that a best-in-breed GeoEye-1 satellite will provide GeoEye, and the whole reason for owning GeoEye’s stock in the first place, and quit worrying about the stinkin’ launch.

• If you are interested in learning more about the launch and tracking the launch of GeoEye-1, GeoEye provided a web page dedicated to constant updates and real-time streaming video of the launch.

You can visit that here:

http://launch.geoeye.com

New to the GeoEye story?

Click here to read my complete GeoEye research report

• Read my initial buy recommendation here.
• or listen to my EXCLUSIVE interview with GeoEye’s management team here.

*Variables You Should Know About GeoEye, Inc. (NASDAQ: GEOY)
Current Recommendation:	STRONG BUY
The Company:	GeoEye, Inc. provides space-based, and aerial imagery and geospatial information through high-resolution and low-resolution imagery, imagery-derived products, and image processing services to customers worldwide. Its imagery information products enable customers to map, measure, and monitor the earth for intelligence gathering, precision mapping, construction planning, and environmental monitoring applications, among others.
Why Buy Now:	Established Large Player/Customer Base Consistent Revenue Streams High Margin Business Fantastic Growth Potential in an Expanding and Rapidly Developing Market Downside Protection In Recessionary Climate Several Upcoming Positive Catalysts Should Bring Attention to the Sector and Company Fantastic Stock Price Valuation/Entry Point Largely Underfollowed Stock Well Capitalized for the Next 12 Months or More
Market Cap:	$466.6
Revenue (2007):	$181.37
Cash/Debt:	$221.5/ $247
Current Price:	$26.00
Risk Rating (?):	8 (High)
Position Size (?):	1/2 (5-5-08), 1/4 (6-12-08)
Buy Around Price (?):	$22.00 (5-5-08), $16.50 (6-12-08)

*As of 9-4-08. Except share price, all values in millions.