spacetoday.net: Orbital expects loss in 2nd quarter

Posted: Fri, Jun 20, 2003, 6:18 PM ET (2218 GMT)
Orbital Sciences Corporation expects a loss in its fiscal second quarter, in part because of its settlement of a dispute with Orbimage. The company announced late Thursday that it estimates that it will incur a loss between $3.5 and $5.0 million in the second quarter, which ends June 30. Must of that loss is related to a settlement agreement reached with Orbimage regarding the launch of its OrbView-3 satellite; Orbital will pay Orbimage $2.5 million plus a $1 million penalty because the spacecraft — scheduled for launch later this month — was not launched by an April 30 deadline. The company's transportation management systems division will also record a loss of $4.5-5.0 million because of increased costs to complete several contracts. Orbital also announced plans to refinance a $135 million loan taken out last year to pay off convertible bonds that came due last fall; the company believes it can get a better deal than the 12% interest rate the current loan holds. Orbital's stock closed down nearly 4% on Friday.