To: djane who wrote (2805 ) 2/6/1999 5:20:00 PM From: djane Read Replies (1) | Respond to of 29987
*OT*RedHerring blurb on Orbital Top 10 Stocks for 1999 Orbital Sciences Profits, Will Robinson! Red Herring Online February 5, 1999 There's gold in them thar stars, and Orbital Sciences (ORB) is on its way to capturing a large chunk of it. The designer and manufacturer of satellites and launch vehicles had a huge year in 1998. It generated approximately $2.5 billion in new contracts for its space and ground-based product lines, and new orders for the company's infrastructure systems outpaced annual revenues by nearly four to one -- one of the highest book-to-bill ratios in the company's history. But does Orbital's success in 1998 mean that the satellite and rocket industry will finally live up to investors' dreamy expectations? One look at Orbital's earnings growth indicates that, yes, the fundamentals are finally catching up with the hype. Orbital has generated 11 consecutive quarters of earnings growth and doubled its revenues over the past three years. The company anticipates a 25 percent annual growth rate in revenue over the next several years. It announced last December that it expects revenue to exceed $1 billion by 2000 and $1.5 billion by 2002, while at the same time operating margins and earnings per share will increase. For 1998, Orbital is expected to have generated approximately $750 million in revenue. The company also provides satellite navigation and communications products, as well as owning a 50 percent interest in Orbcomm Global, a worldwide remote monitoring and two-way data-transmission service that works via low-earth-orbit (LEO) satellites. And for those investors who are a wee bit nervous about investing in blasting rockets and shooting satellites -- remembering all too clearly what happened to all those pagers, cell phones, and police scanners when a PanAmSat satellite took the dive a few months back -- Orbital's track record should put those worries to rest. The company has a greater than 95 percent success rate on launches, which is why even Bill Gates had Orbital build the prototype satellite for his own future LEO communications system, Teledesic. We wouldn't be surprised if, in the not-too-distant future, Orbital received a large chunk of that 220-satellite order. ALSO CONSIDER: INTERNATIONAL FIBERCOM There's an oft-quoted saying in Silicon Valley that harkens back to the days of the California gold rush: If you want to make real money, forget digging for gold; invest in picks and shovels. If that's true, International FiberCom (IFCI) is the investment you've been waiting for. The company -- which has just made the jump from billboard status to trading on the Nasdaq -- designs, architects, builds, and then lays fiber-optic and other types of cable networks. The company serves many next-generation telcos like Qwest and Sprint, which are building out fully digital IP-based fiber-optic systems. Much like Orbital, which is providing the rockets and satellites so that other companies can mine the skies for telecommunications dollars, International FiberCom is laying the networks so that data communications companies can explore the broadband environment. Orbital Sciences spun off satellite data communications services subsidiary Orbcomm Global. International FiberCom brightened up a sad August earnings season. COPYRIGHT © 1998 RED HERRING COMMUNICATIONS. ALL RIGHTS RESERVED.