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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): April 21, 1998
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ORBITAL SCIENCES CORPORATION
DELAWARE 0-18287 06-1209561
(State of incorporation) (Commission File Number) (I.R.S. Employer I.D. No.)
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 April 21, 1998, Orbital Sciences Corporation ("Orbital" or the
"Company") announced its first quarter 1998 financial results. Revenues for
the quarter ended March 31, 1998 were $186,159,000, an increase over 1997
first quarter revenues of $122,112,000. Quarterly operating income increased
165% from last year, totaling $16,047,000 in the first quarter of 1998 as
compared to $6,047,000 in the 1997 comparable quarter. The Company also
reported 1998 first quarter net income of $6,519,000 (or $0.20 earnings per
share on a fully diluted basis), up 28% compared to net income of $5,094,000
(or $0.16 earnings per share on a fully diluted basis) for the first quarter
of 1997.
The Company's quarterly financial results by business sector were as
follows:
- For the first quarter of 1998, Orbital's space and ground
infrastructure systems sector, including launch vehicles,
satellites, electronics and sensors and ground systems, reported
revenues of $156,341,000, an increase of 47% over 1997 first
quarter revenues of $106,199,000. Infrastructure systems provided
net income of approximately $15,961,000 in the 1998 first quarter,
up 98% over 1997 first quarter net income of $8,069,000.
- The Company's satellite access products sector, including mobile
satellite navigation, positioning and communications products and
transportation management systems, generated revenues of
$29,754,000 for the quarter, an increase of 90% over the 1997
comparable quarter. This sector reported a net loss in the first
quarter of 1998 of $769,000 as compared to net income of $718,000
in the 1997 first quarter.
- As anticipated, the Company's satellite services sector, consisting
of its ORBCOMM Global, L.P. and Orbital Imaging Corporation
affiliates, reported net losses of $8,673,000 in the first quarter
of 1998 as compared to net losses of $3,693,000 in the 1997
comparable quarter.
The table below summarizes the Company's consolidated financial
results for the first quarters of 1998 and 1997:
<TABLE>
<CAPTION>
March 31, 1998 March 31, 1997
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<S> <C> <C>
Revenues $186,159,000 $122,112,000
Operating Income $16,047,000 $6,047,000
Net Income $6,519,000 $5,094,000
Earnings per Fully Diluted Share $0.20 $0.16
Firm Backlog $1,150,000,000 $800,000,000
</TABLE>
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In addition, on April 21, 1998, ORBCOMM Corporation filed a
registration statement with the Securities and Exchange Commission for a
proposed offering of $125 million of its common stock. All shares of common
stock offered are to be issued and sold by ORBCOMM Corporation, which was
organized for the sole purpose of investing in and acting as a general partner
of ORBCOMM Global, L.P. Orbital, through its majority owned subsidiary,
Orbital Communications Corporation, currently holds an approximately 50%
partnership interest in ORBCOMM Global, L.P.
A registration statement relating to the securities of ORBCOMM
Corporation has been filed with the Securities and Exchange Commission but
has not yet become effective. These securities may not be sold nor may
offers to buy be accepted prior to the time that the registration statement
becomes effective.
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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: April 27, 1998 By: /s/ Jeffrey V. Pirone
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Jeffrey V. Pirone
Executive Vice President and
Chief Financial Officer
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