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Technology Stocks : Orbital science (ORB)

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To: Fred Levine who wrote (2229)	9/28/1999 10:37:00 PM
From: Fred Levine	Read Replies (1) of 2394

This is taken from the Yahoo thread... Thompson speaks at BoA conference... by: stashu_b 7868 of 7869 Just out over the First Call system...BoA analyst Musey writes... Highlights from Banc of America Securities LLC 29th Annual Investment Conference Orbital Sciences CEO David Thompson spoke at our 29th Annual Investment Conference in San Francisco today, providing an outline of Orbital's prospects. Below are highlights from his presentation: * Orbital is targeting firm-wide revenue of $1.0 billion in 1999, consisting of Infrastructure ($750 million), Access Products ($150 million) and Satellite Services ($75 million). * The company's total backlog stands at $4.3 billion (of which $2.1 billion is firm). * Orbital's Infrastructure businesses are expected to have top line growth in the 20% range. The company anticipates over 100% growth in its service businesses (ORBCOMM and ORBIMAGE), albeit from a relatively small base ($65-75 million annualized currently). * Mr. Thompson stated that operating margins in the company's Infrastructure division should INCREASE in the future. He projects 9% operating margins in 1999 rising to the 12% range over the next three years. * Orbital reiterated its projections that ORBCOMM orders will reach 200,000 units by year-end. However, Mr. Thompson expects only 25%--35% of those units to be installed and concedes that the installation rate is the division's biggest challenge. * ORBCOMM is working with Qualcomm (QCOM-BUY-$190.63){1} for Qualcomm to assist in selling ORBCOMM to smaller trucking companies it is not able to market it on its own. ORBCOMM is also targeting oil and gas and utility industries as well as the more concentrated railroad and heavy equipment industries. * Orbital's Magellan GPS division should have positive operating margins in the second half of 1999. Mr. Thompson believes that, on the consumer side, pricing is sufficiently low that there is little price elasticity left. Demand growth should be driven by additional features, not price improvements. Automotive market demand, however, is still highly price elastic. * We reiterate our Strong Buy rating on Orbital Sciences. fred

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