Company Elects Four Board Members to New Terms; Approves Increase in Number Of Shares Allocated for Employee Stock Purchase Plan; Recaps 2001 Strategic And Financial Results and Provides Outlook for 2002Orbital Sciences Corporation (NYSE: ORB) held its 2002 Annual Meeting of Stockholders today at the company's headquarters in Dulles, Virginia, during which four members of the Board of Directors, Mr. Daniel J. Fink, Dr. Robert J. Hermann, Ms. Janice I. Obuchowski and Mr. Frank L. Salizzoni, were elected to three-year terms, expiring in 2005.
Orbital also received shareholder approval to increase the number of shares available to the company's Employee Stock Purchase Plan (ESPP) from 1.0 million shares to 3.0 million shares. During 2001 and 2000, Orbital employees purchased 1.0 million shares of common stock through the ESPP program.
Orbital's Chairman and Chief Executive Officer, Mr. David W. Thompson, gave a presentation to stockholders that recapped the progress of the company's "back-to-basics" strategic focus in 2001, as well as detailed the company's business outlook for the remainder of 2002. The highlights of Mr. Thompson's presentation are summarized below:
2001 in ReviewMr. Thompson indicated that 2001 was a year of "major transformation" for Orbital as the company executed its "back-to-basics" strategy adopted in late 2000. He said principal elements of Orbital's refocus on its core space technology products were successfully completed in 2001, including improving the company's operational performance, divesting four non-core businesses for approximately $245 million in proceeds, terminating further investments in satellite service ventures, and strengthening the company's balance sheet. As a result of the actions taken in 2001, Mr. Thompson indicated he believes the company is now positioned for significantly improved financial performance in 2002.
Outlook for 2002With missile defense launch vehicles and geosynchronous communications satellites leading the way as the company's primary growth products, Orbital is looking forward to significantly improved financial performance in 2002, Mr. Thompson stated. The company is targeting revenues in excess of $500 million, with operating profit margins in the range of 4 to 5%. He said the company is targeting all four quarters of 2002 to generate positive net income and that the year began on an upbeat note with the $2.4 million net income, or $0.05 earnings per share, that the company reported for its first quarter earlier this week.
Mr. Thompson indicated that while Orbital has clearly established positive momentum over the past several quarters, challenges for the company remain ahead in 2002. Specifically, he cited the need to address the company's $100 million convertible bonds that mature on October 1, 2002, together with a focus on large-scale ramp-up of the company's operations on new programs like the recently awarded missile defense boost vehicle contract, as well as continued discipline in the areas of cost control, cash management and program execution.
Orbital is one of the world's leading developers and manufacturers of affordable space systems for commercial, civil government and military customers. The company's primary products include low-orbit, geosynchronous and planetary spacecraft for communications, scientific and remote sensing missions; ground- and air-launched rockets that deliver satellites into orbit; and missile defense boosters that are used as target and interceptor vehicles. Orbital also offers space-related technical services to government agencies and develops and builds satellite-based transportation management systems for public transit agencies and private vehicle fleet operators.
More information about Orbital can be found at: http://www.orbital.com .Note: "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995.
Some of the statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than those of historical facts included herein, including those related to the company's financial outlook, goals, business strategy, projected plans and objectives of management for future operations, new order trends and liquidity are forward-looking statements. Such "forward- looking statements" 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.
Factors such as general economic and business conditions, availability of required capital for Orbital and its affiliates, continued government support and funding for key space and defense programs, the financial condition of major customers, product performance, market acceptance of products, services and technologies, consumer demand, and dependence upon long-term contracts and licensing agreements 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. Orbital assumes no obligation to update any such forward-looking information.
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