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ORBITAL ANNOUNCES RECORD
FINANCIAL RESULTS FOR 1997
Earnings Up 45% on Revenue Increase of 31% Over Last Year
Company Reports Eighth Consecutive Quarter of Record Results
(DULLES, VA FEBRUARY 5, 1998) -- Orbital Sciences Corporation (ORBI NASDAQ) today announced its full-year 1997 financial results, reporting annual revenues of $605,975,000, an increase of 31% over 1996 annual revenues of $461,435,000. The company also reported net income of $23,005,000 for the year (or $0.69 earnings per share on a fully diluted basis), up 45% compared to net income of $15,907,000 in 1996 (or $0.55 earnings per share on a fully diluted basis).
"We are extremely pleased with Orbital's 1997 financial results, which reflect an impressive set of strategic and operational achievements throughout the company," stated Mr. David W. Thompson, Orbital's President and Chief Executive Officer. "In 1997, we surpassed both our 25% revenue growth objective and our 30% earnings growth target by considerable amounts. And we concluded the year with a strong fourth quarter, representing the eighth consecutive period in which Orbital achieved record revenues, earnings and contract backlog and during which we met or exceeded analysts' expectations of our financial performance," he added.
The company finished 1997 with $2.9 billion in total order backlog, a 38% increase compared to year-end 1996 backlog, fueled by over $1.7 billion of new orders received for its space and ground infrastructure systems in 1997. Additionally, the company ended 1997 with total assets of over $770,000,000, shareholders' equity of over $350,000,000 and total debt of just over $225,000,000.
Fourth Quarter 1997 Results
For the fourth quarter of 1997, Orbital reported revenues of $176,967,000, an increase of 47% over 1996 fourth quarter revenues of $120,458,000. Net income for the fourth quarter of 1997 was $6,178,000 (or $0.18 earnings per share on a fully diluted basis), up 38% compared to net income of $4,484,000 (or $0.14 earnings per share on a fully diluted basis) in the 1996 comparable period. Orbital's three business sectors contributed the following quarterly results:
The company's space and ground infrastructure sector generated $156,310,000 in revenues during the 1997 fourth quarter, an increase of 47% over 1996 fourth quarter revenues of $106,502,000, and provided net income of $13,498,000, up 66% over 1996 fourth quarter net income of $8,121,000.
The company's satellite access products sector generated $20,588,000 in revenues during 1997's final quarter, an increase of 50% over 1996 fourth quarter revenues of $13,743,000, and contributed net income of $4,170,000 compared to a breakeven quarter in 1996. Included in satellite access products sector net income is a one-time gain of $21,810,000 related to the merger of the company's Magellan Corporation subsidiary with Ashtech Inc. completed in December 1997, before considering certain one-time acquisition expenses and restructuring charges related to the merger.
As anticipated, the company's satellite services sector, consisting of its ORBCOMM and ORBIMAGE affiliates, contributed limited revenues and generated losses of $11,490,000 in the 1997 fourth quarter, compared to losses of $3,559,000 in the 1996 fourth quarter.
Strategic and Operational Accomplishments in 1997
"The company's satellites, launch vehicles, electronics and ground systems continued their anticipated strong growth, capturing new long-term contracts worth about $1.7 billion last year," Mr. Thompson said. "While our satellite access products business faced significant challenges in 1997, we are excited about the recent merger of Ashtech with our Magellan subsidiary, and the long-term growth prospects for satellite navigation and communications products at `New Magellan'. In addition, we concluded the year by accomplishing several major milestones at our ORBCOMM affiliate, which now has its `countdown to global service' well underway, and we achieved extraordinary progress in our ORBIMAGE affiliate as well," he concluded.
Orbital carried out 23 satellite and rocket launches in 1997 with a 100% success rate, increasing the company's operational experience to over 175 space missions conducted since 1982. Especially noteworthy operational events during 1997 included:
Orbital's first international launch of a Pegasus rocket, which took place in April from the Canary Islands, making it the world's first space launch from Western Europe.
The company's August launch and subsequent check-out of OrbView-2, ORBIMAGE's second imagery satellite and the world's first commercial multispectral satellite.
Orbital's deployment and commissioning of IndoStar-1, its first geosynchronous communications satellite, in November.
The company's launch and initial check-out of eight new ORBCOMM data communications satellites in December.
In addition, Orbital completed several major strategic transactions during 1997, including the acquisitions of CTA Inc.'s space systems division and of Rockwell International's automotive navigation business in the summer and the merger of Magellan and Ashtech late in the year. As a result of continuing rapid internal growth and these recent acquisitions, Orbital emerged in 1997 as one of the ten largest satellite-related companies in North America and as one of the world's top three "pure play" public space companies.
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-provided 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. |
