Orbital Announces Second Quarter 2010 Financial Results

22 July 2010

Orbital Sciences Corporation reported its financial results for the second quarter of 2010. Second quarter 2010 revenues were $337.7 million, up 25% compared to $270.1 million in the second quarter of 2009. Second quarter 2010 operating income was $12.2 million, compared to $12.8 million in the second quarter of 2009.

Net income was $6.3 million, or $0.11 diluted earnings per share, in the second quarter of 2010 compared to net income of $8.7 million, or $0.15 diluted earnings per share, in the second quarter of 2009. The second quarter of 2010 included $1.6 million of transaction expenses related to the acquisition of the spacecraft development and manufacturing business of General Dynamics Advanced Information Systems, Inc. (GD). Orbital’s free cash flow* in the second quarter of 2010 was negative $76.5 million compared to positive $15.8 million in the second quarter of 2009.

Mr. David W. Thompson, Orbital’s Chairman and Chief Executive Officer, said, “Orbital’s second quarter 2010 revenues were substantially higher than last year’s second quarter sales, setting a new record for the company. Operating income increased modestly, excluding the one-time transaction expenses incurred in connection with the GD spacecraft business acquisition in April. This year’s second quarter results were also impacted by unanticipated costs related to the Galaxy 15 communications satellite anomaly that occurred in April 2010 and the effect of the termination of the Orion human spacecraft contract in May.” He added, “In our operational programs, the company conducted five successful space missions -- including three ‘first flights’ of new launch systems -- and continued to make steady progress on the Taurus II launch vehicle and Cygnus spacecraft development programs in the quarter.”