Orbital Sciences Corp. (ORB, Financial) filed Quarterly Report for the period ended 2010-06-30.
Orbital Sciences Corp. has a market cap of $831.5 million; its shares were traded at around $14.43 with a P/E ratio of 23.7 and P/S ratio of 0.8. Orbital Sciences Corp. had an annual average earning growth of 2.8% over the past 5 years.ORB is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Pioneer Investments, RS Investment Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Our consolidated revenues were $633.9 million in the first half of 2010, an increase of $68.0 million, or 12%, compared to the first half of 2009 primarily due to the same factors that drove quarterly results, namely higher revenues in the advanced space programs and satellites and space systems segments, partially offset by lower revenues in the launch vehicles segment. Advanced space programs segment revenues increased $98.1 million, or 75%, due to increased activity on the CRS contract and national security satellite programs, partly offset by decreased activity on the Orion LAS contract, which was terminated for convenience by the customer in the second quarter of 2010. Satellites and space systems segment revenues increased $35.7 million, or 17%, primarily due to increased activity on communications satellite contracts in addition to activity on science and technology contracts acquired in connection with the recent spacecraft business acquisition completed in the second quarter of 2010. Launch vehicles segment revenues declined $40.3 million, or 17%, primarily due to decreased activity on the GMD missile defense program and the termination of the KEI contract in the second quarter of 2009, partially offset by increased production work on Taurus II launch vehicles for the CRS and COTS programs. The elimination of intercompany revenues reduced consolidated revenues in the first half of 2010 by $30.5 million, compared to $5.1 million in the first half of 2009. Intercompany revenues in the first half of 2010 included $27.0 million pertaining to Taurus II production work in the launch vehicles segment for the COTS program.
Research and Development Expenses - Our research and development expenses totaled $30.3 million, or 9% of revenues, in the second quarter of 2010, a $0.4 million decrease compared to $30.7 million, or 11% of revenues, in the second quarter of 2009. This marginal decrease in research and development expenses in the second quarter of 2010 was primarily due to a $12.5 million decrease in our Taurus II launch vehicle development program, substantially offset by a $12.3 million increase in the COTS program. During the second quarter of 2010 and 2009, approximately $7.8 million and $20.3 million, respectively, of our research and development expenses were attributable to the Taurus II program.
For the first half of 2010, research and development expenses totaled $60.4 million, or 10% of revenues, a $10.7 million increase compared to $49.7 million, or 9% of revenues, in the first half of 2009. This increase in research and development expenses in the first half of 2010 was primarily due to a $22.8 million increase in the COTS program partially offset by an $11.7 million decrease in our Taurus II launch vehicle development program. In the first half of 2010 and 2009, approximately $23.1 million and $34.8 million, respectively, of our research and development expenses were attributable to the Taurus II program.
Net Income - Our net income was $6.3 million, or $0.11 diluted earnings per share, and $8.7 million, or $0.15 diluted earnings per share, in the second quarter of 2010 and 2009, respectively, and was $15.6 million, or $0.27 diluted earnings per share, and $17.9 million, or $0.31 diluted earnings per share, in the first half of 2010 and 2009, respectively.
Operating income in the launch vehicles segment decreased $0.4 million, or 4%, in the first half of 2010 compared to the first half of 2009 due to a $12.4 million reduction in operating income attributable to lower GMD and KEI contract activity, substantially offset by a $8.1 million reduction in unrecovered research and development expenditures in the first half of 2010, increased Taurus II production work for the CRS and COTS programs and favorable adjustments on certain target launch vehicle contracts. Operating income from interceptor launch vehicle contracts was $4.3 million and $16.7 million in the first half of 2010 and 2009, respectively. In the first half of 2010 and 2009, operating income reflects $4.9 million and $13.1 million, respectively, of research and development expenses that exceeded our self-imposed ceiling on such costs.
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Orbital Sciences Corp. has a market cap of $831.5 million; its shares were traded at around $14.43 with a P/E ratio of 23.7 and P/S ratio of 0.8. Orbital Sciences Corp. had an annual average earning growth of 2.8% over the past 5 years.ORB is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Pioneer Investments, RS Investment Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Revenues - Our consolidated revenues were $337.7 million in the second quarter of 2010, an increase of $67.6 million, or 25%, compared to the second quarter of 2009 primarily due to higher revenues in the advanced space programs and satellites and space systems segments, partially offset by lower revenues in the launch vehicles segment. Advanced space programs segment revenues increased $58.9 million, or 95%, due to increased activity on the International Space Station Commercial Resupply Services (“CRS”) contract and national security satellite programs, partly offset by decreased activity on the Orion human spacecraft Launch Abort System (“LAS”) contract, which was terminated for convenience in the second quarter of 2010. Satellites and space systems segment revenues increased $45.3 million, or 48%, primarily due to increased activity on communications satellite contracts in addition to activity on science and technology contracts acquired in connection with the spacecraft business acquisition completed in the second quarter of 2010. Launch vehicles segment revenues declined $21.4 million, or 18%, primarily due to decreased activity on the Ground-based Midcourse Defense (“GMD”) missile defense program and the termination of the Kinetic Energy Interceptor (“KEI”) contract by the Missile Defense Agency (“MDA”) in the second quarter of 2009, partially offset by increased production work on Taurus II launch vehicles for the CRS contract and the Commercial Orbital Transportation Services (“COTS”) demonstration mission. The elimination of intercompany revenues reduced consolidated revenues in the second quarter of 2010 by $18.3 million, compared to $3.1 million in the second quarter of 2009. Intercompany revenues in the second quarter of 2010 included $16.5 million pertaining to Taurus II production work in the launch vehicles segment for the COTS program.Our consolidated revenues were $633.9 million in the first half of 2010, an increase of $68.0 million, or 12%, compared to the first half of 2009 primarily due to the same factors that drove quarterly results, namely higher revenues in the advanced space programs and satellites and space systems segments, partially offset by lower revenues in the launch vehicles segment. Advanced space programs segment revenues increased $98.1 million, or 75%, due to increased activity on the CRS contract and national security satellite programs, partly offset by decreased activity on the Orion LAS contract, which was terminated for convenience by the customer in the second quarter of 2010. Satellites and space systems segment revenues increased $35.7 million, or 17%, primarily due to increased activity on communications satellite contracts in addition to activity on science and technology contracts acquired in connection with the recent spacecraft business acquisition completed in the second quarter of 2010. Launch vehicles segment revenues declined $40.3 million, or 17%, primarily due to decreased activity on the GMD missile defense program and the termination of the KEI contract in the second quarter of 2009, partially offset by increased production work on Taurus II launch vehicles for the CRS and COTS programs. The elimination of intercompany revenues reduced consolidated revenues in the first half of 2010 by $30.5 million, compared to $5.1 million in the first half of 2009. Intercompany revenues in the first half of 2010 included $27.0 million pertaining to Taurus II production work in the launch vehicles segment for the COTS program.
Research and Development Expenses - Our research and development expenses totaled $30.3 million, or 9% of revenues, in the second quarter of 2010, a $0.4 million decrease compared to $30.7 million, or 11% of revenues, in the second quarter of 2009. This marginal decrease in research and development expenses in the second quarter of 2010 was primarily due to a $12.5 million decrease in our Taurus II launch vehicle development program, substantially offset by a $12.3 million increase in the COTS program. During the second quarter of 2010 and 2009, approximately $7.8 million and $20.3 million, respectively, of our research and development expenses were attributable to the Taurus II program.
For the first half of 2010, research and development expenses totaled $60.4 million, or 10% of revenues, a $10.7 million increase compared to $49.7 million, or 9% of revenues, in the first half of 2009. This increase in research and development expenses in the first half of 2010 was primarily due to a $22.8 million increase in the COTS program partially offset by an $11.7 million decrease in our Taurus II launch vehicle development program. In the first half of 2010 and 2009, approximately $23.1 million and $34.8 million, respectively, of our research and development expenses were attributable to the Taurus II program.
Net Income - Our net income was $6.3 million, or $0.11 diluted earnings per share, and $8.7 million, or $0.15 diluted earnings per share, in the second quarter of 2010 and 2009, respectively, and was $15.6 million, or $0.27 diluted earnings per share, and $17.9 million, or $0.31 diluted earnings per share, in the first half of 2010 and 2009, respectively.
Operating income in the launch vehicles segment decreased $0.4 million, or 4%, in the first half of 2010 compared to the first half of 2009 due to a $12.4 million reduction in operating income attributable to lower GMD and KEI contract activity, substantially offset by a $8.1 million reduction in unrecovered research and development expenditures in the first half of 2010, increased Taurus II production work for the CRS and COTS programs and favorable adjustments on certain target launch vehicle contracts. Operating income from interceptor launch vehicle contracts was $4.3 million and $16.7 million in the first half of 2010 and 2009, respectively. In the first half of 2010 and 2009, operating income reflects $4.9 million and $13.1 million, respectively, of research and development expenses that exceeded our self-imposed ceiling on such costs.
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