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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Wizard Wannabe who wrote (4081)	7/27/1998 3:14:00 PM
From: Snake	Respond to of 10852

I am no expert, but originally Matra Marconi was to produce the Orion 2 bird. Once Loral acquired Orion, it cancelled the contract and now SS/L is building the bird. Keeps SS/L busy and it better for the Loral family of companies--i.e. lowers overall costs for the group. It also sounds as though the satellite will have an additional 8 transponders and a longer usefule life. I will defer to Valueman for more precise numbers, but 8 transponders at $2 million annual taransponder revenue and approximately 50% net income margins for an additional 3 years (this is a guess) would be an additional $24 million of net income for Orion plus Loral getting any cost savings on the satellite itself from manufacturing it "in-house" with SS/L as opposed to outside with Matra.