Net income was $21.2 million, or $0.36 diluted earnings per share, in the fourth quarter of 2010 compared to net income of $9.3 million, or $0.16 diluted earnings per share, in the fourth quarter of 2009. The fourth quarters of 2010 and 2009 included Federal research and development (R&D) tax credits of $7.4 million, or $0.13 per share, and $1.6 million, or $0.03 per share, respectively. Free cash flow* was negative $26.3 million in the fourth quarter of 2010 compared to positive $8.3 million in the fourth quarter of 2009.
Full year 2010 revenues were $1,294.6 million, compared to $1,125.3 million in 2009. Operating income was $73.0 million in 2010, compared to $52.3 million in 2009. Net income was $47.5 million, or $0.81 diluted earnings per share, in 2010 compared to net income of $36.6 million, or $0.63 per diluted share, in 2009. Federal R&D tax credits reduced income tax expense and increased net income by $7.4 million, or $0.13 per share, in 2010 and $6.4 million, or $0.11 per share, in 2009. Full year free cash flow was negative $84.2 million in 2010, compared to positive $58.7 million in 2009.
Mr. David W. Thompson, Orbital’s Chairman and Chief Executive Officer, said, “Orbital’s fourth quarter and full year 2010 financial results were very strong, reflecting double-digit increases in revenues, operating income and earnings per share in both periods. In addition, for the second consecutive year, the company had its most productive quarter for new business and its busiest quarter for operational activity in the final three months of the year.”
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