<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarter ended
MARCH 31, 1996
ORBITAL SCIENCES CORPORATION
Commission file number 0-18287
DELAWARE 06-1209561
------------------------------- -------------------------------
(State of Incorporation) (IRS Identification number)
21700 ATLANTIC BOULEVARD
DULLES, VIRGINIA 20166 (703) 406-5000
------------------------------- -------------------------------
(Address of principal executive offices) (Telephone number)
The registrant has (1) filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past 90 days.
As of May 1, 1996, 26,107,642 shares of the registrant's common stock were
outstanding.
<PAGE> 2
PART 1
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ORBITAL SCIENCES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except share data)
<TABLE>
<CAPTION>
A S S E T S MARCH 31, DECEMBER 31,
----------- 1996 1995
----------- ------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $6,662 $15,317
Short-term investments, at market 11,168 19,713
Receivables, net 128,768 118,358
Inventories, net 38,633 38,527
Deferred income taxes and other assets 7,856 7,330
----------- ------------
TOTAL CURRENT ASSETS 193,087 199,245
PROPERTY, PLANT AND EQUIPMENT, AT COST, LESS ACCUMULATED
depreciation and amortization of $57,286 and $53,067, respectively 91,127 91,512
SATELLITE SYSTEMS, AT COST, LESS ACCUMULATED
depreciation of $753 and $547, respectively 15,760 14,363
INVESTMENTS IN AFFILIATES, NET 79,507 74,063
EXCESS OF PURCHASE PRICE OVER NET ASSETS ACQUIRED,
less accumulated amortization of $14,416 and $13,697, respectively 75,037 75,395
DEFERRED INCOME TAXES AND OTHER ASSETS 13,222 12,330
----------- ------------
TOTAL ASSETS $467,740 $466,908
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term obligations $24,675 $11,907
Accounts payable 21,411 25,808
Accrued expenses 25,995 29,922
Payable to subcontractors 12,475 11,552
Deferred revenue 31,557 32,503
----------- ------------
TOTAL CURRENT LIABILITIES 116,113 111,692
LONG-TERM OBLIGATIONS, NET OF CURRENT PORTION 93,470 96,990
OTHER LIABILITIES 16,765 19,740
----------- ------------
TOTAL LIABILITIES 226,348 228,422
NON-CONTROLLING INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES (678) (422)
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Series A Special Voting Preferred Stock, par value $.01; 1 share
authorized and outstanding - -
Class B Preferred Stock, no par value; 10,000 shares authorized
and outstanding - -
Preferred Stock, par value $.01; 10,000,000 shares authorized, no
shares issued or outstanding - -
Common Stock, par value $.01; 40,000,000 shares authorized,
26,828,848 and 26,766,029
shares outstanding, after deducting 15,735 shares held in treasury 269 268
Additional paid-in capital 248,008 247,580
Unrealized gains on short-term investments 66 68
Cumulative translation adjustment (3,749) (3,356)
Retained earnings (deficit) (2,524) (5,652)
----------- ------------
TOTAL STOCKHOLDERS' EQUITY 242,070 238,908
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $467,740 $466,908
=========== ============
</TABLE>
SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
2
<PAGE> 3
ORBITAL SCIENCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED; IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
MARCH 31,
---------------------------------------
1996 1995
-------------- --------------
<S> <C> <C>
REVENUES $104,894 $88,975
COSTS OF GOODS SOLD 72,582 63,462
-------------- --------------
GROSS PROFIT 32,312 25,513
RESEARCH AND DEVELOPMENT EXPENSES 6,378 5,052
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 19,265 14,965
AMORTIZATION OF EXCESS OF PURCHASE PRICE OVER
NET ASSETS ACQUIRED 797 739
-------------- --------------
INCOME FROM OPERATIONS 5,872 4,757
NET INTEREST EXPENSE (635) (838)
EQUITY IN EARNINGS (LOSSES) OF AFFILIATES (2,018) 427
NON-CONTROLLING INTERESTS IN (EARNINGS) LOSSES
OF CONSOLIDATED SUBSIDIARIES 257 --
-------------- --------------
INCOME BEFORE PROVISION FOR INCOME TAXES 3,476 4,346
PROVISION FOR INCOME TAXES 348 1,328
-------------- --------------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGES 3,128 3,018
CUMULATIVE EFFECT OF ACCOUNTING CHANGES, net of taxes -- (4,160)
-------------- --------------
NET INCOME (LOSS) $3,128 ($1,142)
============== ==============
NET INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE:
Income Before Cumulative Effect of Accounting Changes $0.12 $0.12
Cumulative Effect of Accounting Changes -- (0.17)
============== ==============
$0.12 ($0.05)
SHARES USED IN COMPUTING NET INCOME (LOSS)
PER COMMON AND COMMON EQUIVALENT SHARE 27,154,259 24,742,033
============== ==============
NET INCOME (LOSS) PER COMMON SHARE, assuming full dilution:
Income Before Cumulative Effect of Accounting Changes $0.12 $0.12
Cumulative Effect of Accounting Changes -- (0.17)
============== ==============
$0.12 ($0.05)
SHARES USED IN COMPUTING NET INCOME (LOSS)
PER COMMON SHARE, assuming full dilution 31,050,110 28,861,940
============== ==============
</TABLE>
SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
3
<PAGE> 4
ORBITAL SCIENCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED; IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
MARCH 31,
---------------------------
1996 1995
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $3,128 $3,017
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Depreciation and amortization expense 6,117 4,239
Equity in (earnings) losses of affiliates 2,018 427
Non-controlling interests in earnings (losses) of affiliates (257) --
Foreign currency translation adjustment (393) --
CHANGES IN ASSETS AND LIABILITIES:
(Increase) decrease in contract receivables (10,410) (6,158)
(Increase) decrease in components inventory (106) 2,289
(Increase) decrease in other current assets (526) (2,389)
(Increase) decrease in deposits and other assets (1,736) (292)
Increase (decrease) in payables and accrued expenses (7,901) (14,465)
Increase (decrease) in deferred revenue (1,017) 378
Increase (decrease) in other liabilities (2,975) (639)
---------- ----------
NET CASH PROVIDED BY (USED BY) OPERATING ACTIVITIES (14,058) (13,593)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (5,643) (2,527)
Proceeds from sales of fixed assets -- 125
Sale of investment securities 8,543 3,061
Investments in affiliates (7,174) (1,590)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (4,274) (931)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net short-term borrowings (repayments) 12,700 (901)
Principal payments on long-term obligations (3,452) (845)
Net proceeds from issuances of common stock 429 535
Adjustment to recast pooled companies' year end -- (1,050)
---------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 9,677 (2,261)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (8,655) (16,785)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 15,317 27,919
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $6,662 $11,134
========== ==========
</TABLE>
SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
- 4 -
<PAGE> 5
ORBITAL SCIENCES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996 AND 1995
(UNAUDITED)
BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited interim
financial information reflects all adjustments, consisting of normal recurring
accruals, necessary for a fair presentation thereof. Certain information and
footnote disclosure normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to instructions, rules and regulations prescribed by the
Securities and Exchange Commission. Although the Company believes that the
disclosures provided are adequate to make the information presented not
misleading, these unaudited interim condensed consolidated financial statements
should be read in conjunction with the audited consolidated financial
statements and the footnotes thereto included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1995. Operating results for the
three-month periods ended March 31, 1996 and 1995 are not necessarily
indicative of the results expected for the full year.
Orbital Sciences Corporation is hereafter referred to as "Orbital" or the
"Company."
(1) Inventories
Inventories consist of components inventory, work-in-process inventory
and finished goods inventory and are generally stated at the lower of
cost or net realizable value on a first-in, first-out or specific
identification basis.
Components inventory consists primarily of components and raw
materials purchased to support future production efforts.
Work-in-process inventory consists primarily of (i) costs incurred
under U.S. Government fixed-price contracts accounted for using the
percentage of completion method of accounting applied on a units of
delivery basis and (ii) partially assembled commercial products, and
generally includes direct production costs and certain allocated
indirect costs (including an allocation of general and administrative
costs). Work-in-process inventory has been reduced by contractual
progress payments received. Finished goods inventory consists of
fully assembled commercial products awaiting shipment.
(2) Common Stock and Income Per Share
Income per common and common equivalent share is calculated using the
weighted average number of common and common equivalent shares, to the
extent dilutive, outstanding during the periods. Income per common
share assuming full dilution is calculated using the weighted average
number of
5
<PAGE> 6
common and common equivalent shares outstanding during the periods
plus the effects of an assumed conversion of the Company's 6 3/4%
convertible subordinated debentures, after giving effect to all net
income adjustments that would result from the assumed conversion. Any
reduction of less than three percent in the aggregate has not been
considered dilutive in the calculation and presentation of income per
common share assuming full dilution.
(3) Income Taxes
The Company has recorded its interim income tax provision based on
estimates of the Company's effective tax rate expected to be
applicable for the full fiscal year. Estimated effective rates
recorded during interim periods may be periodically revised, if
necessary, to reflect current estimates.
(4) Reclassifications
Certain reclassifications have been made to the 1995 condensed
consolidated financial statements to conform to the 1996 condensed
consolidated financial statement presentation. The November 1995
acquisition of MacDonald, Dettwiler and Associates Ltd. was recorded
using the pooling of interests method of accounting for business
combinations and, accordingly, Orbital's 1995 historical financial
statements have been restated to reflect this transaction.
6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1996 AND 1995
REVENUES. Orbital's revenues for the three-month periods ended March 31, 1996
and 1995 were $104,894,000 and $88,975,000, respectively.
Space-Technology Products
Revenues from the Company's orbital launch vehicle products increased to
$14,080,000 in the first quarter of 1996, from $6,657,730 in the first quarter
of 1995. The significant increase in revenues in 1996 is attributable
primarily to the resumption of production of the Company's Pegasus XL launch
vehicle leading up to and following its first successful launch in March 1996.
As a result of the resumed production and assuming continued successful
launches in 1996, Orbital expects total 1996 orbital launch vehicle revenues to
exceed 1995's total revenues of $33,883,000.
Revenues from suborbital and other launch vehicle products decreased to
$4,618,000 in the 1996 quarter as compared to $5,719,000 in the 1995 quarter.
While suborbital revenues have decreased significantly during the past few
years as U.S. Government defense spending has been reduced, the Company expects
1996 revenues to remain approximately consistent with levels achieved in 1995.
For the three months ended March 31, 1996, satellite systems revenues increased
to $22,559,000 from $14,519,000 in the 1995 quarter. The increase in satellite
system sales is primarily due to additional revenues generated from new
satellite orders and to increased sales to ORBCOMM Global L.P. Revenues
generated from sales of space sensors and instruments of $3,163,000 during the
1996 quarter decreased slightly from the comparable 1995 quarter sales of
$3,485,000, and are expected to remain lower than 1995 levels throughout 1996.
Revenues from electronics systems were approximately $12,970,000 for the three
months ended March 31, 1996 as compared to $15,463,000 in the 1995 period. The
decrease in revenues is primarily a result of fewer orders received during the
1996 quarter. Orbital expects sales of electronics systems to increase
slightly throughout the remainder of 1996.
Revenues from the Company's satellite ground systems and other software
products were $23,306,000 in 1996 as compared to $20,634,000 in 1995. The 1996
increase, which reflects work performed on new contract awards, is expected to
continue at approximately the same rate throughout 1996.
7
<PAGE> 8
Satellite-Provided Services
Revenues from sales of navigation and communications products increased to
$23,117,000 for the 1996 quarter as compared to $13,886,000 for the 1995
period, primarily due to a substantial increase in unit sales offset, in part,
by lower unit prices, for GPS navigators. The Company expects navigation and
communications products sales to continue to increase as compared to 1995
levels throughout 1996, although at somewhat lower levels than achieved in the
first quarter.
The Company's ORBCOMM and ORBIMAGE start-up businesses generated service
revenues of less than $1,000,000 in the 1996 quarter.
GROSS PROFIT. Gross profit depends on a number of factors, including the
Company's mix of contract types and costs incurred thereon in relation to
estimated costs. The Company's gross profit for the first quarter of 1996 was
$32,312,000, as compared to $25,516,000 in the 1995 first quarter. Gross
profit margin as a percentage of sales for those periods was approximately
30.8% and 28.7%, respectively. The increased gross profit margin as a
percentage of sales in 1996 is primarily attributable to the resumption of
Pegasus production after launch failures in June, 1994 and June, 1995. The
Company believes that its gross profit margin for the remainder of 1996 will
remain slightly higher than 1995 levels.
RESEARCH AND DEVELOPMENT EXPENSES. Research and development expenses represent
Orbital's self-funded product development activities, and exclude direct
customer-funded development. Research and development expenses during the
three-month periods ended March 31, 1996 and 1995 were $6,378,000 and
$5,052,000, respectively. Research and development expenses in 1996 relate
primarily to the development of new or improved navigation and communications
products, new or improved launch vehicles and new satellite programs. The
Company expects its research and development expenditures for the rest of 1996
to be consistent with the 1995 expenditure rate.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses include the costs of marketing, advertising,
promotional and other selling expenses as well as the costs of the finance,
administrative and general management functions of the Company. Selling,
general and administrative expenses for the first quarters of 1996 and 1995
were $19,265,000 (or 18.4% of revenues) and $4,965,000 (or 16.8% of revenues),
respectively. The increase in selling, general and administrative expenses
during 1996 as compared to 1995 was primarily attributable to substantially
expanded marketing efforts related to the Company's ORBCOMM and ORBIMAGE
projects. The Company expects selling, general and administrative expenses as
a percentage of revenues during the remainder of 1996 to be in line with the
percentage attained during first quarter of 1996.
INTEREST INCOME AND INTEREST EXPENSE. Net interest expense was $635,000 and
$838,000 for the three months ended March 31, 1996 and 1995, respectively.
Interest
8
<PAGE> 9
income for the periods reflects interest earnings on short-term investments.
Interest expense is primarily for outstanding amounts on Orbital's revolving
credit facility, on the Company's public debentures, and on secured and
unsecured debt. Interest expense has been reduced by capitalized interest of
$1,682,000 and $1,188,000 in 1996 and 1995, respectively.
EQUITY IN EARNINGS (LOSSES) OF AFFILIATES AND NON-CONTROLLING INTERESTS IN
CONSOLIDATED SUBSIDIARIES. Equity in earnings (losses) of affiliates and
non-controlling interests in (earnings) losses consolidated subsidiaries for
the first quarters of 1996 and 1995 were ($1,761,000) and $427,000,
respectively. These amounts represent elimination of 50% of the profits on
sales to ORBCOMM Global L.P., as well as the Company's pro rata share of
ORBCOMM Global L.P.'s and ORBCOMM USA L.P.'s current period earnings and
losses.
PROVISION FOR INCOME TAXES. The Company recorded an income tax provision of
$348,000 and $1,328,000 for the three-month periods ended March 31, 1996 and
1995, respectively. The Company records its interim income tax provisions
based on estimates of the Company's effective tax rate expected to be
applicable for the full fiscal year. Estimated effective rates recorded during
interim periods may be periodically revised, if necessary, to reflect current
estimates.
At December 31, 1995, Orbital had approximately $100,000,000 and $2,000,000 of
net operating loss and tax credit carryforwards, respectively, which are
available to reduce future income tax obligations, subject to certain annual
limitations and other restrictions.
LIQUIDITY AND CAPITAL RESOURCES
The Company's growth has required substantial capital to fund both an expanding
business base and significant research and development and capital investment
expenditures. Additionally, the Company has historically made strategic
acquisitions of businesses and routinely evaluates potential acquisition
candidates. The Company expects to continue to pursue potential acquisitions
that it believes would augment its marketing, technical, manufacturing or
financial capabilities. The Company has funded these requirements to date, and
expects to fund its requirements in the future through cash generated by
operations, working capital loan facilities, asset-based financings, joint
venture arrangements, and private and public equity and debt offerings.
Cash, cash equivalents and short-term investments were $17,830,000 at March 31,
1996, and the Company had short-term and long-term debt obligations outstanding
of approximately $118,145,000. The outstanding debt relates primarily to
advances under the Company's lines of credit facilities, secured and unsecured
notes, fixed asset financings and the Company's public debentures.
9
<PAGE> 10
The Company's primary revolving credit facility provides for total borrowings
from an international syndicate of six banks of up to $65,000,000, subject to a
defined borrowing base comprised of certain contract receivables.
Approximately $6,000,000 of borrowings were outstanding under the facility at
March 31, 1996, and the available facility limit was approximately $25,000,000.
At March 31, 1996, the average interest rate on outstanding borrowings under
this facility was approximately 9%. Borrowings are secured by contract
receivables and certain other assets. The facility restricts the payment of
dividends and contains certain covenants with respect to the Company's working
capital, fixed charge ratio, leverage ratio and tangible net worth, and expires
in September 1997. The Company (or its subsidiaries) also maintains two
additional, smaller revolving credit facilities, under which approximately
$10,000,000 was outstanding at March 31, 1996.
The Company's operations used net cash of approximately $14,058,000 in the
first quarter of 1996. The Company also invested approximately $7,174,000 in
its ORBCOMM project and incurred $5,643,000 in capital expenditures related
primarily to ORBIMAGE satellite remote sensing systems and spacecraft
production and test equipment.
Orbital expects to invest up to $15,000,000 in various ORBIMAGE satellite
remote sensing projects in 1996. Orbital also intends to invest an additional
approximately $5,000,000 in ORBCOMM Global L.P. in 1996, bringing its total
investment to $75,000,000. Orbital expects that its 1996 capital needs for its
existing operations, including its planned investments in the ORBCOMM and
ORBIMAGE projects, will in part be provided by working capital, cash flows from
operations, credit facilities, asset-based financings, customer financings and
operating lease arrangements. Orbital believes that it is likely to require
additional equity and/or debt financing to fully fund its currently planned
operations and capital requirements, to meet its potential increased investment
in ORBCOMM Global L.P. and to meet its investment requirements for ORBIMAGE
projects.
10
<PAGE> 11
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - A complete listing of exhibits required is given in
the Exhibit Index that precedes the exhibits filed with this
report.
(b) Not applicable.
11
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ORBITAL SCIENCES CORPORATION
DATED: May 8, 1996 By: /s/ David W. Thompson
---------------------------------------
David W. Thompson, President
and Chief Executive Officer
DATED: May 8, 1996 By: /s/ Jeffrey V. Pirone
------------------------------------------------
Jeffrey V. Pirone, Vice President,
Controller, and Principal Financial Officer
12
<PAGE> 13
EXHIBIT INDEX
The following exhibits are filed as part of this report.
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
11 Statement re: Computation of Earnings Per Share (transmitted herewith).
27 Financial Data Schedule (such schedule is furnished for the information of the Securities and
Exchange Commission and is not to be deemed "filed" as part of the Form 10-Q, or otherwise
subject to the liabilities of Section 18 of the Securities Exchange Act of 1934) (transmitted
herewith).
</TABLE>
13
<PAGE> 1
EXHIBIT 11.
STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
THREE MONTH PERIOD ENDED MARCH 31, 1996
- ---------------------------------- ---------------------------------
ASSUMING
PRIMARY FULL DILUTION
------------- ---------------
<S> <C> <C>
WEIGHTED AVERAGE OF OUTSTANDING
SHARES 26,794,600 26,794,600
COMMON EQUIVALENT SHARES:
OUTSTANDING STOCK OPTIONS 359,659 359,858
OTHER POTENTIALLY DILUTIVE SECURITIES:
CONVERTIBLE DEBENTURES N/A 3,895,652
------------- ---------------
SHARES USED IN COMPUTING
NET INCOME PER SHARE 27,154,259 31,050,110
============= ===============
NET INCOME $3,128,148 $3,128,148
ADJUSTMENTS ASSUMING FULL DILUTION:
INTEREST EXPENSE, NET OF TAXES N/A 840,788
------------- ---------------
NET INCOME, ASSUMING FULL DILUTION $3,128,148 $3,968,936
============= ===============
NET INCOME PER SHARE $0.12 $0.13
DILUTION PERCENTAGE ASSUMING FULL DILUTION (1) N/A -10.96%
NET INCOME PER SHARE $0.12 $0.12
============= ===============
</TABLE>
NOTES:
(1) - PROVIDED THAT DILUTION IS GREATER THAN 3%, THE CONVERTIBLE DEBENTURES ARE
CONSIDERED DILUTIVE IN THE CALCULATION AND PRESENTATION OF PER SHARE
DATA.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF EARNINGS AT AND FOR
THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000820736
<NAME> ORBITAL SCIENCES CORP /DE/
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 6,662
<SECURITIES> 11,168
<RECEIVABLES> 128,768
<ALLOWANCES> (784)
<INVENTORY> 38,663
<CURRENT-ASSETS> 193,087
<PP&E> 164,926
<DEPRECIATION> (58,039)
<TOTAL-ASSETS> 467,740
<CURRENT-LIABILITIES> 116,113
<BONDS> 93,470
0
0
<COMMON> 269
<OTHER-SE> 241,801
<TOTAL-LIABILITY-AND-EQUITY> 467,740
<SALES> 104,894
<TOTAL-REVENUES> 104,894
<CGS> 72,582
<TOTAL-COSTS> 72,582
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 42
<INTEREST-EXPENSE> 841
<INCOME-PRETAX> 3,476
<INCOME-TAX> 248
<INCOME-CONTINUING> 3,128
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,128
<EPS-PRIMARY> 0.12
<EPS-DILUTED> 0.12
</TABLE>
