Orbital Sciences Corporation (NYSE: ORB) held its 2000 Annual Meeting of Stockholders today at the company’s headquarters in Dulles, Virginia during which four members of the Board of Directors were elected to three-year terms. During the meeting, Orbital’s Chairman and CEO Mr. David W. Thompson gave a presentation in which he recapped the company’s strategic, operational and financial performance in 1999 and provided a similar overview of the company’s targets for 2000.
During the meeting, four members of Orbital’s Board of Directors, Mr. Douglas S. Luke, Dr. Harrison H. Schmitt, Mr. James R. Thompson and Mr. Scott L. Webster were elected to new, three-year terms. In addition, Orbital announced that another Board member, Dr. John L. McLucas was retiring but will continue to serve the company in an advisory capacity as its first Director Emeritus. A replacement for Dr. McLucas’ seat on the Board was not announced.
Mr. Thompson’s presentation addressed 1999 results and the company’s outlook for 2000.
1999 Results Overview
Operational Performance:
Mr. Thompson noted the company’s continued strong operational performance in 1999. Orbital carried out 19 fully successful space missions during the year and recently extended the company’s 100% mission success rate to 85 consecutive missions dating back to the beginning of 1997, the best record in the space industry for that period.
Strategic Developments:
Orbital accomplished a number of important strategic actions in 1999, Mr. Thompson stated. Among them were the expansion of the company’s technological capabilities and market presence in space robotics, geosynchronous satellites and advanced launch vehicles. In addition, Orbital laid the foundation for two new service businesses — an online business-to-business initiative in land information services and an automotive telematics service venture formed with blue-chip partners that is already producing strong revenue gains.
Financial Results:
Mr. Thompson acknowledged that 1999 was a difficult and disappointing period for the company in terms of its financial results and the decline in its stock price. He said that despite robust growth in revenues, a substantial increase in EBITDA and a stronger year-end balance sheet than earlier in 1999, the financial disappointments clearly outweighed progress in other areas.
2000 Targeted Performance
In outlining Orbital’s strategic, operational and financial targets in 2000, Mr. Thompson stated that the company’s number one priority in 2000 is to recover and increase the share value of Orbital’s stock. To accomplish this overriding goal, Mr. Thompson laid out the company’s performance goals for 2000.
Operational Goals:
Orbital is targeting to complete about 20 space missions in 2000 with a continued 100% success rate, said Mr. Thompson. In addition, the company is working with its ORBCOMM affiliate to help accelerate the installation rate of wireless data communications units at customer locations. Mr. Thompson also noted that the company is continuing its efforts to keep the launch of its ORBIMAGE affiliate’s high-resolution imaging satellites on schedule for 2001.
Strategic Goals:
Mr. Thompson stated that the same strategic plan that created the foundation for building Orbital into a space industry leader over the past decade will continue to govern the company’s actions. In 2000, Orbital will focus on three primary strategic areas: first, to continue to capture and sustain leading positions for its core space and ground infrastructure systems and satellite access products; second, to continue to exploit Orbital’s complete end-to-end space systems capabilities, which is found nowhere else in the company’s market segments for small space systems; and third, to leverage these core capabilities and technologies to allow Orbital’s satellite services affiliates to be among the first to operate global satellite networks in selected markets.
Financial Goals:
Mr. Thompson stated that Orbital’s financial targets for 2000 include increasing the company’s revenues to over $1.0 billion and its total backlog of orders for its space and ground infrastructure systems to $5.0 billion. He added that the company is also targeting improved operating margins, stronger cash flow, a lower level of debt and smaller net losses in 2000 as compared to 1999.
Orbital is a space and information systems company that designs, manufactures, operates and markets a broad range of affordable space infrastructure systems, satellite access products and satellite services. These products and services include satellites and other space systems, launch vehicles, electronics and sensors, satellite ground systems and land information services, satellite-based navigation and communications products, and satellite-delivered communications, Earth imaging and other information services.
Note: “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995. Certain “forward-looking statements” contained in this release involve unknown risks and uncertainties that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements. In particular, statements containing objectives, goals, targets and expectations are not projections of future performance. In addition, factors such as general economic and business conditions, availability of required capital, product performance, market acceptance of products, services and technologies, consumer demand, and dependence upon long-term contracts with commercial and government customers may impact the company’s revenues, expenses and profit from period to period. These factors and others related to the company’s business are described in further detail in the company’s SEC filings, including its Form 10-K and Forms 10-Q.