Orbital Reports Record Sales and Earnings in Third Quarter
Tuesday October 20, 8:31 am Eastern Time
Company Press Release
SOURCE: Orbital Sciences Corporation
Orbital Reports Record Sales and Earnings in Third Quarter
- Net Income Up 40% on 18% Revenue Increase Over Last Year -
- Total Backlog Climbs 32% to Over $3.8 Billion on Strong New Orders -
DULLES, Va., Oct. 20, -- Orbital Sciences Corporation (NYSE: ORB - news) today announced its third quarter 1998 financial results, reporting record revenues
of $193,488,000, an increase of 18% over 1997 third quarter revenues of $164,670,000. Quarterly net income increased 40% from last year, totaling $8,611,000
in the third quarter of 1998 as compared to $6,130,000 in the 1997 comparable quarter. The company also reported 1998 third quarter earnings per share on a
fully diluted basis of $0.21, up 17% compared to $0.18 earnings per share on a fully diluted basis for the third quarter of 1997.
As a result of approximately $435,000,000 of new orders in the quarter for its space and ground infrastructure systems, the company's total contract backlog at
September 30, 1998 increased 32%, reaching an all-time high of approximately $3.8 billion. Total backlog was approximately $2.9 billion a year ago.
For the first nine months of 1998, the company's revenues were $564,163,000, an increase of 32% over comparable 1997 revenues of $429,008,000. Net income
for the first nine months increased 34% from last year, totaling $22,549,000 in 1998 as compared to $16,827,000 in the 1997 comparable period. The company
also reported 1998 nine-month earnings per share on a fully diluted basis of $0.62, up 24% compared to $0.50 earnings per share on a fully diluted basis for the
comparable period in 1997.
Commenting on Orbital's record financial performance in the September quarter, Mr. David W. Thompson, Chairman and Chief Executive Officer, noted, ''Driven
by solid revenue growth across all business sectors and double-digit margins in infrastructure systems, the company increased its overall operating margin to 8.3% of
sales in the third quarter, almost 1.0% higher than this time last year. In addition, we started to see meaningful revenues this quarter from our satellite services
ventures as subscriber ramp-ups began for ORBCOMM and ORBIMAGE.''
The company's quarterly financial results by business sector were as follows:
Space and Ground Infrastructure:
For the third quarter of 1998, Orbital's space and ground infrastructure systems sector, including launch vehicles, satellites, electronics and sensors, and ground
systems, reported revenues of $166,386,000, an increase of 11% over 1997 third quarter revenues of $149,387,000. Infrastructure systems provided net income of
approximately $20,574,000 in the 1998 third quarter, up 52% over 1997 third quarter net income of $13,505,000. For the first nine months of 1998, Orbital's
space and ground infrastructure systems sector reported revenues of $478,428,000, an increase of 27% over 1997 nine- month revenues of $378,109,000.
Infrastructure systems provided net income of approximately $55,597,000 in the first nine months of 1998, up 73% over 1997 comparable net income of
$32,172,000.
Satellite Access Products:
The company's satellite access products sector, including mobile satellite navigation, positioning and communications products and transportation management
systems, generated revenues of $26,963,000 for the quarter, an increase of 77% over the 1997 comparable quarter revenues of $15,261,000. This sector reported
a net loss in the third quarter of 1998 of $1,989,000 compared to net income of $117,000 in the 1997 quarter. The current quarter loss was in line with
management's expectations for this business area. The company's satellite access products sector generated revenues of $85,273,000 for the first nine months of
1998, an increase of 68% over 1997 comparable period revenues of $50,796,000. This sector reported a net loss of $7,673,000 in the first nine months of 1998 as
compared to net income of $1,468,000 in the 1997 nine-month period.
Satellite Services:
The company's satellite services sector, consisting of its ORBCOMM Global L.P. and ORBIMAGE affiliates, generated revenues of $6,905,000 during the third
quarter and $11,447,000 during the first nine months of 1998. Satellite services generated revenues of $401,000 and $1,033,000 in the comparable 1997 periods.
(Orbital generally does not consolidate the revenue of its satellite services affiliates.) As anticipated, satellite services reported net losses of $9,927,000 in the third
quarter of 1998 as compared to net losses of $7,492,000 in the 1997 comparable quarter. Included in ORBCOMM's quarterly results is a charge of approximately
$2,000,000 relating to its delayed initial public offering. ORBCOMM Global and ORBIMAGE reported combined net losses of $25,375,000 in the first nine
months of 1998 compared to net losses of $16,813,000 in the 1997 comparable period.
''Orbital also continued its strong operational performance in the third quarter, building on our accomplishments in the first half of 1998,'' said Mr. Thompson.
''Since last quarter, we successfully launched one Taurus and two Pegasus rockets, deploying sixteen advanced data communications satellites for ORBCOMM
Global and an experimental satellite for the U.S. National Reconnaissance Office. This quarter's successful launches and satellite deployments continued our 100%
space mission reliability record in 1998, extending it to 26 successes in 26 attempts so far this year, including four Pegasus launches, two Taurus launches, one
suborbital launch and 19 satellite deployments,'' he added.
Customer demand for Orbital's infrastructure systems has continued to be robust this year as the company recorded total new orders for the first nine months of
1998 worth $1.4 billion. ''We booked about $435 million of new orders in the third quarter for the company's satellites, launchers, electronics and sensors, and
ground systems, boosting firm backlog over 60% to nearly $1.6 billion and total backlog over 30% to $3.8 billion compared to this time last year,'' Mr. Thompson
said.
Orbital is one of the largest space and information systems companies in the world, with 1998 revenues of approximately $750 million. The company, which is
headquartered in Dulles, Virginia, employs 4,200 people at its major facilities in eight states and several international locations. Orbital is the world's leading
manufacturer of low-cost space systems and products, including satellites, launch vehicles, electronics and sensors, satellite ground systems and software, and
satellite-based navigation and communications products. Through its ORBCOMM and ORBIMAGE subsidiaries, Orbital is also a pioneering operator of satellite
networks that provide data communications and high-resolution imagery services to customers all around the world.
Orbital Sciences Corporation
Financial Results Summary
Third Quarter Results:
Sept. 30, 1998 Sept. 30, 1997 % Increase
Revenues $193,488,000 $164,670,000 18%
Gross Profit $52,293,000 $46,015,000 14%
Operating Income $16,103,000 $12,249,000 31%
Net Income $8,611,000 $6,130,000 40%
Fully Diluted EPS $0.21 $0.18 17%
Firm Backlog $1,583,000,000 $980,000,000 62%
Total Backlog $3,841,000,000 $2,910,000,000 32%
Nine Month Results:
Sept. 30, 1998 Sept. 30, 1997 % Increase
Revenues $564,163,000 $429,008,000 32%
Gross Profit $154,518,000 $119,366,000 29%
Operating Income $41,588,000 $29,301,000 42%
Net Income $22,549,000 $16,827,000 34%
Fully Diluted EPS $0.62 $0.50 24%
SOURCE: Orbital Sciences Corporation
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