Strengthened by increased revenues in its satellites and related space systems segment and the launch vehicles segment, Orbital Sciences Corp saw second quarter revenues increase to $273.3 million, up 39 percent over the same period a year ago, the company announced July 18.

Based on the record revenues, Dulles, Va.-based Orbital recorded record earnings of $13.8 million in the quarter, which closed June 30. In the 2006 second quarter, Orbital posted a profit of $9.9 million on revenues of $197 million.

David Thompson, Orbital’s chairman and CEO, also said the company started development in April of a new medium-class rocket, dubbed Taurus 2, that would replace Boeing’s Delta 2, which is scheduled to phased out at the end of the decade.

“We believe [Taurus 2] will be a major source of revenue growth and profitability increases for Orbital several years from now,” he said during a conference call to discuss the earnings report.

The Taurus 2 will be able to deliver satellites weighing up to 6,000 kilograms to low-altitude orbits, and satellites weighing up to 3,000 kilograms to geosychronous orbits. Orbital’s Taurus launch vehicle can deliver spacecraft weighing up to 1,590 kilograms to low-Earth orbit. The rocket has performed six missions — the last in May 2004 — and suffered one failure in its lifetime.

The first launch of the Taurus 2 is expected to take place in 2010, and the vehicle could generate between $150 million and $200 million in annual revenues with three or four missions per year by 2012, Thompson said.

Orbital will provide a more detailed look at Taurus 2’s development costs, investment requirements and potential financial returns in October, Thompson said.

Reviewing the company’s 2007 second quarter performance, Thompson said its “satellite and space systems segment posted robust revenue and operating profit growth, while our launch vehicles segment generated very solid growth as well.”

Satellites and related space systems reported revenues of $160 million, up 48 percent from a year ago. Orbital credited the gains to work on NASA’s Orion program and growth in the communications satellites product line.

During the 2007 second quarter, 10 commercial communications satellites were ordered, and Orbital captured two of the three orders in its small satellite segment. Orbital has captured five of the six small communications satellites ordered in the first half of 2007.

“For the year as a whole, we expect to see seven or eight additional total orders in the second half to bring the total for the year to 25 or 26, with eight or nine small satellites,” Thompson said.

“We’re aiming to hopefully win one more for a two-third’s share of orders in our segment this year.”

The launch vehicles segment reported revenues of $102.2 million, an increase of 27 percent, due to increased contract activity on various suborbital rocket programs as well as growth in the interceptor and space launch vehicles product lines

“These operating results, combined with strong new business bookings achieved in the second quarter, continue to signal an optimistic outlook for Orbital this year,” Thompson said.
Orbital raised its revenue guidance for 2007 to between $975 million and $1 billion, up from previous estimates of $900 million to $925 million.