SPACEHAB’s Financial Performance Is Hurt By Suspension Of Space Shuttle Flights

Houston-based SPACEHAB‘s [Nasdaq: SPAB] revenue for the second fiscal quarter of 2004, excluding a $17.5 million long-term contract prepayment, decreased by approximately 46 percent from the prior year’s quarterly revenue of $28.1 million primarily due to the continuing postponement of U.S. space shuttle missions.

Those missions have been halted pending resolution of all issues addressed in the Columbia Accident Investigation Board report on the space shuttle tragedy, and the previously announced completion of certain contracts in the SPACEHAB Government Services (SGS) business unit, company officials said. NASA has announced that it currently anticipates the return of space shuttle flights in September 2004. SPACEHAB is a provider of commercial and government space services.