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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 20, 1998
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ORBITAL SCIENCES CORPORATION
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<S> <C> <C>
DELAWARE 0-18287 06-1209561
(State of incorporation) (Commission File Number) (I.R.S. Employer I.D. No.)
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21700 ATLANTIC BOULEVARD
DULLES, VIRGINIA 20166
(703) 406-5000
(Address and telephone number
of principal executive offices)
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ITEM 5. OTHER EVENTS.
On October 20, 1998, Orbital Sciences Corporation ("Orbital" or the
"company") announced its third quarter 1998 financial results, reporting
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.
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.
The company's quarterly financial results by business sector were as
follows:
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.
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.
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The company's affiliates, ORBCOMM Global L.P. and ORBIMAGE, which
comprise the satellite services sector, 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. 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 Sciences Corporation
Financial Results Summary
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THIRD QUARTER RESULTS:
Sept 30, 1998 Sept 30, 1997 % Increase
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<S> <C> <C> <C>
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%
NINE MONTH RESULTS:
Sept 30, 1998 Sept 30, 1997 % Increase
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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%
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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
Date: October 20, 1998 By: /s/ Jeffrey V. Pirone
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Jeffrey V. Pirone
Executive Vice President and
Chief Financial Officer
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