Orbital Reports Record First Quarter Financial Results Orbital Reports Record First Quarter Financial Results April 21, 1998 8:36 AM EDT
- Earnings Up 28% on Major Revenue Increase Over Last Year -
- Total Backlog Climbs to Nearly $3.4 Billion on Strong New Orders -
DULLES, Va., April 21 /PRNewswire/ -- Orbital Sciences Corporation (Nasdaq: ORBI) today announced its first quarter 1998 financial results, setting all-time records for revenues, net income and contract backlog for the ninth consecutive quarter. The company's revenues in the quarter were $186,159,000, an increase of 52% over 1997 first quarter revenues of $122,112,000. Quarterly operating income increased 165% from last year, totaling $16,047,000 in the first quarter of 1998 as compared to $6,047,000 in the 1997 comparable quarter. The company also reported 1998 first quarter net income of $6,519,000 (or $0.20 earnings per share on a fully diluted basis), up 28% compared to net income of $5,094,000 (or $0.16 earnings per share on a fully diluted basis) for the first quarter of 1997. The company's total backlog at March 31, 1998 reached an all-time high of approximately $3.4 billion as a result of approximately $650,000,000 of new orders in the quarter for its space and ground infrastructure systems.
The company's quarterly financial results by business sector were as follows:
* For the first quarter of 1998, Orbital's space and ground infrastructure systems sector, including launch vehicles, satellites, electronics and sensors and ground systems, reported revenues of $156,341,000, an increase of 47% over 1997 first quarter revenues of $106,199,000. Infrastructure systems provided net income of approximately $15,961,000 in the 1998 first quarter, up 98% over 1997 first quarter net income of $8,069,000.
* The company's satellite access products sector, including mobile satellite navigation, positioning and communications products and transportation management systems, generated revenues of $29,754,000 for the quarter, an increase of 90% over the 1997 comparable quarter. This sector reported a net loss in the first quarter of 1998 of $769,000 as compared to net income of $718,000 in the 1997 first quarter.
* As anticipated, the company's satellite services sector, consisting of its ORBCOMM Global, L.P. and ORBIMAGE affiliates, reported net losses of $8,673,000 in the first quarter of 1998 as compared to net losses of $3,693,000 in the 1997 comparable quarter.
"Orbital continued its strong operational performance and rapid financial growth in the first quarter," said Mr. David W. Thompson, Chairman and Chief Executive Officer. "During the last three months, we successfully launched two Pegasus and one Taurus rockets, deploying six satellites for ORBCOMM Global, Teledesic Corporation, NASA and the U.S. Navy. We also booked several major new orders for the company's satellites, launchers, electronics systems and ground stations, boosting firm backlog to about $1.15 billion and total backlog to over $3.35 billion," he added.
The company's ORBCOMM affiliate made important progress in the quarter, completing another four milestones in its final ten-step "Countdown to Global Service." It now has 12 satellites in orbit; seven gateway Earth stations installed in North America, Europe and Asia; 43 domestic and 15 international value-added resellers and 12 independent applications developers; 13 countries with final or preliminary operating licenses for its service; and four communicator manufacturers in production on monitoring, tracking and messaging products. In addition, Orbital's ORBIMAGE affiliate completed a major equity and debt financing package in the last several months. ORBIMAGE had two of its four planned imaging satellites in orbit and nine of 15 planned ground receiving and processing stations operational around the world in the first quarter.
Orbital completed over $330 million of corporate and subsidiary financings in the last three months, including a $158 million common stock offering in April and a $173 million equity and debt placement for ORBIMAGE in February. The proceeds of these financings will allow Orbital to support aggressive growth plans in its core infrastructure systems sector and to invest in new projects and emerging satellite-related businesses, and will fully fund the implementation of ORBIMAGE's expanded four-satellite business plan.
The table below summarizes the company's consolidated financial results for the first quarters of 1998 and 1997:
March 31, 1998 March 31, 1997 % Increase
Revenues $186,159,000 $122,112,000 52%
Operating Income $16,047,000 $6,047,000 165%
Net Income $6,519,000 $5,094,000 28%
Earnings
per Fully Diluted Share $0.20 $0.16 25%
Firm Backlog $1,150,000,000 $800,000,000 44%
Total Backlog $3,360,000,000 $2,120,000,000 58%
Orbital is a space and information systems company that designs, manufactures, operates and markets a broad range of affordable space infrastructure systems, satellite access products and satellite services, including launch vehicles, satellites, sensors and electronics, satellite ground systems and software, satellite-based navigation and communications products, and satellite-delivered fixed and mobile communications and Earth imaging services. SOURCE Orbital Sciences Corporation |
