Orbital ATK returned to the black in the first quarter, posting $69.8 million in profit amid a 10 percent rise in revenue — to $1.07 billion — fueled by a steady rise in new business.
Orbitalís Space Systems Group — one of three operating units — slightly underperformed the topline surge companywide with a 9 percent rise in unit revenue, to $356 million.
“Orbital ATK began 2016 with a solid quarter that largely met our expectations for the beginning of the year,” Orbital chief David Thompson said. “Of particular note was our very strong new business activity that resulted in a firm book-to-bill ratio of 152 percent.
“We also made progress on the growth initiatives announced last quarter, including contracting with Intelsat as the first customer for our commercial satellite servicing venture,” Thompson added.
“As we entered the second year of the merger, the company continued to achieve cost and revenue synergies that are helping us lower costs for customers, improve profit margins and generate top-line growth in the years ahead.”
Orbital ATK was formed in February 2015 by the merger of Orbital Sciences and Alliant Techsystems.
Company shares (NYSE: OA) closed down 1.3 percent at $86 following release of the financial results May 5. The stock recently has been trading toward the higher end of a 52-week range of $94.92-$56.06.