Orbital Sciences 2nd-quarter net income drops 27 percent, hurt by acquisition and rising costs

Orbital 2Q net income down 27 pct on rising costs

DULLES, Va. — Orbital Sciences Corp., which makes satellites, rockets and other space technology, said Thursday that its second-quarter net income plunged 27 percent, weighed down in part by costs associated with an acquisition.

Shares fell 71 cents, or 4.6 percent, to $14.91 in afternoon trading. The stock has ranged from $12.19 to $19.63 over the past year.

Orbital’s second-quarter net income fell to $6.3 million, or 11 cents per share, from $8.7 million, or 15 cents per share, in the same period last year.

The latest quarter’s results included included $1.6 million of transaction expenses related to the $55 million acquisition of the spacecraft development and manufacturing business of General Dynamics Advanced Information Systems Inc., which closed in April.

The quarter’s results were also hurt by unanticipated costs related to a malfunctioning Galaxy 15 communications satellite that began drifting in space and lost contact with its operator in April, and the effect of the termination of the Orion human spacecraft contract in May.

Analysts surveyed by Thomson Reuters had forecast net income of 17 cents per share. Analysts typically exclude one-time items from their estimates.

Revenue increased 25 percent to $337.7 million from $270.1 million, more than the $307.8 million analysts had expected.

Orbital’s cost of revenue rose 30 percent to $271.3 million.