ORB

Orbital Sciences Corp. reported a profit of $8.8 million on its 2006 first quarter on revenues of $192.1 million, the company announced April 20. In the same period in 2005, the company posted earnings of $6.2 million on revenues of $167.1 million.

Orbital attributed its revenue growth to a 30 percent increase in satellites and related space systems segment revenues, which was driven by growth in the communications satellites product line. The growth was offset partially by a decrease in the science, technology and defense satellites product line due to the substantial completion of a satellite in the first quarter of 2006.

Launch vehicles segment revenues fell slightly due to lower revenues from the target vehicle and space launch vehicle product lines, partially offset by slightly higher interceptor launch vehicles product line revenues.

Operating income was $15.9 million in the 2006 first quarter, up 30 percent from the previous year. The increase was driven by higher operating income in the satellites and related space systems segment. The gains from the communications satellite operations were offset by an operating income decrease in the science, technology and defense satellites product line, consistent with the revenue decline in this product line. Operating income in the launch vehicles and transportation management segments remained constant in the same period, Orbital said.

"The company started the year with exceptional financial performance," David Thompson, Orbital’s chairman and CEO, said in a statement. "Our satellite segment led the way with large increases in communications satellite revenues and operating profit, while our launch vehicles segment continued its solid performance."

Orbital reported free cash flow of $22.6 million for the first quarter of 2006 and an unrestricted cash balance was $180.6 million as of March 31. During the quarter, Orbital repurchased about 550,000 shares of its common stock for $7.9 million as part of a 12-month, $50 million securities repurchase program started in 2005.

During the first quarter of 2006, Orbital received roughly $220 million in new firm and option contract bookings, as well as about $175 million of option exercises under existing contracts. As of March 31, the company’s firm contract backlog was approximately $1.4 billion, with total backlog (including options, indefinite-quantity contracts and undefinitized orders) standing at about $3 billion.

Since the beginning of the year, Orbital has carried out nine space missions, including missile defense-related launches, and has delivered seven rockets and satellites for future missions. The company expects to carry out up to 18 launch vehicle and spacecraft missions and complete and deliver at least 12 more satellites and launch vehicles

"With these operating results, together with the strong cash flow and good new business levels generated in the first quarter, we continue to be very optimistic about Orbital’s outlook for 2006," Thompson said. Orbital reiterated its expectations that 2006 revenues would fall between $760 million and $780 million, with operating income margin in the 7.75 percent to 8.25 percent rate.

Orbital’s stock slipped 44 cents the day the first quarter numbers were released, closing at $15.52 April 19. The company’s shares began the year at $12.98 and climbed as high as $16.06 March 30 before slipping back into the $15 dollar range.

XMSR

XM Satellite Radio Inc. is negotiating to pay some of its debt to General Motors (GM) early, XM said in an April 17 filing with the U.S. Securities and Exchange Commission.

XM hopes to make a prepayment of about $240 million to retire about $320 million in fixed payments due in 2007, 2008 and 2009. XM also said it may increase the size of its senior secured credit facility with GM, which may be used to finance payments, from $100 million to $150 million.

XM also announced that in connection with previously announced debt refinancing plans, the company hopes to sell an aggregate of $600 million of notes to institutional buyers. The net proceeds from the transactions will be used to pay debt, XM said. In connection with the planned refinancing, XM said it expected to receive commitments for a new $250 million revolving credit facility with a group of banks. XM also will have the right to increase the credit facility by up to $100 million.

ANDW

Andrew Corp., has acquired England’s Precision Antennas Ltd., a provider of antennas for terrestrial and satellite communications systems. Andrew paid about $26 million to acquire the subsidiary of Cobham PLC.

"Precision Antennas is a strong complement to Andrew’s existing portfolio of antenna systems and products," John DeSana, group president, Andrew’s Antenna and Cable Products Group, said in a statement. "The addition of Precision strengthens Andrew’s market position in microwave antennas and enhances our ability to support the future needs of existing and new customers."