DigitalGlobe Changes GAAP Accounting, Morgan Stanley Reports

Morgan Stanley reports that DigitalGlobe, Inc. DGI has changed its GAAP accounting to reflect the gradual ramp in services provided to the National Geospatial-Intelligence Agency (NGA), which manifests itself in revenue deferrals / lower reported revenues in the early years of the ten year contract. “We have adjusted our model accordingly, noting that cash flows and the underlying fundamentals of the business are unchanged,” Morgan Stanley writes. DigitalGlobe closed Friday at $30.71.