(RTTNews) -  Orbital Sciences Corp. (ORB: News ), a developer and manufacturer of small- and medium-class rockets and space systems, reported a decline in third quarter earnings. Revenue from satellites and space systems declined, while advanced space program segment recorded a strong growth in revenue. The company reaffirmed its 2009 earnings view and provided preliminary 2010 earnings outlook, which came in below Street expectations.

Net income for the quarter declined to $9.38 million or $0.16 per share from $11.45 million or $0.19 per share in the corresponding period last year. Results for the quarter included a non-cash investment impairment charge of $2 million related to auction rate securities compared to $1 million a year earlier.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues declined to $277.1 million from $278.6 million in the same period last year, but came in above the $269.48 million projected by Street analysts. The company attributed the decline primarily to decreased contract activity on communications satellite and missile defense programs, substantially offset by activity on the Commercial Resupply Services contract.

Launch vehicles segment revenues decreased to $110 million from $111.8 million in the year-ago quarter. Operating income slid to $3.2 million from $8.4 million a year earlier.

Satellites and space systems segment revenues declined to $75.7 million from $100 million in the same period last year. Operating income fell to $5.7 million from $8.1 million in the corresponding period last year.

Advanced space programs segment revenues increased to $94.4 million from $68.6 million in the prior year period. Operating income increased slightly to $4.7 million from $4.5 million a year earlier.
Orbital generated $24.4 million of free cash flow compared to $37.1 million in the corresponding period last year.

David Thompson, Orbital's chairman and chief executive officer, said, the company "received $365 million in new contracts and option exercises in the third quarter, which helped to boost our financial outlook for 2010."

Orbital said as of September 30, 2009, the company's firm contract backlog was approximately $1.5 billion

Looking ahead, for 2009, the company continues to expect earnings to be in the range of $0.55 - $0.60 per share on revenue in the range off $1.110 billion - $1.135 billion. Analysts currently expect the company to report earnings of $0.60 per share on revenue of $1.12 billion for 2009.

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