* Q2 EPS $0.46 vs est $0.39
* Q2 revenue $72.7 mln
* Shares up about 3 percent (Adds details from 10-Q, analyst comments)
BANGALORE, Aug 10 (Reuters) - Satellite imagery company GeoEye Inc GEOY.O posted a better-than-expected quarterly profit, helped by full recognition of revenue from its newest satellite, GeoEye-1.
The company also said it does not expect to build or commission an accelerated GeoEye-2 satellite without assurances of an expanded National Geospatial-Intelligence Agency (NGA) agreement.
The NGA, a U.S. Department of Defense agency, is GeoEye's largest customer accounting for about 65 percent of its revenue. GeoEye-1 was funded by a $500 million contract that the company won under NGA's NextView program.
"Only when we have visibility on the expected contractual demand for a new satellite from the NGA do we expect to make a decision as to whether to invest the capital necessary to build and commission GeoEye-2 on an accelerated basis," the company said in a filing with the U.S. Securities and Exchange Commission.
Dougherty & Co analyst Jeff Evanson said the company will not seek a capital raise for GeoEye-2 that will be dilutive to shareholders.
"If the government wants GeoEye-2 by 2013, they will have to make financial commitment to it. Otherwise, GeoEye is going to fund the next satellite with free cash flow," Evanson said in an e-mail.
The company said if it does not build GeoEye-2 on an accelerated basis, it would most likely proceed in such a way that it could be used as a replacement satellite for GeoEye-1 in the 2016 to 2017 timeframe.
It launched its second satellite GeoEye-1, the world's highest-resolution commercial Earth imaging satellite, in September 2008.
The company posted a second-quarter net income of $9.6 million, or 46 cents a share.
Revenue more than doubled to $72.7 million from the year-ago period and rose 61 percent sequentially.
Canaccord Adams analyst Jeff Rath said the incremental improvement from the previous quarter was almost all from GeoEye-1.
Analysts were expecting earnings of 39 cents a share, before items, on revenue of $73.9 million, according to Reuters Estimates.
Backlog was about $325.2 million at June 30, the company said.
Shares of the Dulles, Virginia-based company were up 59 cents at $25.15 Monday afternoon on Nasdaq. They touched a high of $25.37 earlier. (Editing by Deepak Kannan)