[Satellite TODAY 10-22-10] Orbital Sciences Corp.’s third quarter 2010 revenues rose 13 percent to $314.5 million, driven by substantial increases in the company’s satellite and space systems sales, Orbital announced in its latest financial results, issued Oct. 21.
   Orbital’s third quarter operating income jumped 43 percent to $19.4 million, compared to $13.6 million in the third quarter of 2009, with net income hitting $10.6 million, compared to $9.4 million in the same period of 2009.
   Chairman and CEO David Thompson said Orbital’s third quarter 2010 performance resulted in better-than-expected free cash flow for the company. “Operating income rose for all three of our business segments. In addition, the company generated strong new order and option exercise activity in the third quarter, which totaled about $580 million, and boosted year-to-date new business volume to just under $1.4 billion.”
    Orbital satellites and space systems revenues increased $46.1 million in the quarter due to increased activity on communications satellite contracts, including activity on contracts from its acquisition of General Dynamics‘ satellite development and manufacturing business in April.
    The company’s space segment operating income increased $1.8 million in the third quarter. Orbital said operating income could have been higher if it had not spent $1 million on engineering and troubleshooting activities related to Intelsat’s Galaxy 15 satellite anomaly in the second quarter. 
    Orbital also was hit by unexpected research and development costs for government programs. “Research and development expenses are generally recoverable under contracts with the U.S. government.  However, in the third quarters of 2010 and 2009, launch vehicles segment operating income was reduced by $1.6 million and $7 million, respectively, of unrecovered research and development expenses that exceeded a self-imposed ceiling on such costs,” Thompson said.
    Orbital launch vehicle revenues feel $4.2 million from revenues generated in the third quarter of 2009 due to decreased activity on the Ground-based Midcourse Defense (GMD) missile defense program. Losses were partially offset by increased production work on Taurus 2 launch vehicles for its NASA commercial resupply contract.