In an effort to put years of accounting problems behind it, Orbital Sciences Corp. [ORB] appointed a new chief financial officer (CFO). Garrett Pierce will become an executive vice president, CFO and a member of the company’s board of directors.

Pierce, 55, is expected to assume his new duties with Orbital in early August and replace the embattled Jeffrey Pirone, who had been Orbital’s executive vice president and CFO since 1996 when Orbital’s accounting practices later led it to restate its earnings downward for the past several years.

The responsibility for the company’s accounting missteps and performance problems rested squarely with Pirone and that no one would lose his job due to the troubles, said Orbital Sciences Chairman and CEO David Thompson.

However, Pirone and Thompson recently met and agreed that a change would be in the company’s best interest now that the restated earnings appear to be completed and the new accounting procedures are appropriately conservative, industry sources said. Pirone will remain on Orbital’s payroll as a consultant and later may take an operational role at the company.

…Thumbs Up From Wall Street

“We believe that this is a step in the right direction for Orbital as it attempts to make a fresh start with the investor community,” reported Banc of America Securities. “Orbital’s relationship with its investors has been rocky over the past two years. The company has missed consensus numbers for four of the past six quarters and has restated its financials twice last year.”

“As a consequence, investor confidence has fallen and the stock is trading well below the intrinsic value of its Space Ground & Infrastructure division, which has been a very solid performer in the past two years. The appointment of Pierce will hopefully open a new chapter with investors,” BOA added.

Banc of America continues to maintain a “Stong Buy” recommendation on Orbital.

“Investors are critical that the stock’s recent weakness is largely due to poor management guidance. In that regard, it makes sense to put new people in place where the investment community still is willing to the give them the benefit of the doubt,” said William Kidd, a satellite analyst with C.E. Unterberg, Towbin.