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And in after hours trading, Orbital Sciences was down 15.5%.
I would assume they're insured
As part of our risk management strategy, we generally insure significant mission success milestone receipts. Insurance recoveries are recorded as other income in the consolidated financial statements. Mission success milestones relating to the launch of our Antares rocket with its Cygnus payload and the successful delivery of cargo to the ISS comprise approximately 25% of total CRS contract value. If we do not achieve these mission success milestones, we may be required to record revenue and profit reductions. Since the inception of the CRS contract in December 2008 through December 31, 2013, we have recognized $1.3 billion of revenues on the contract, which has a total contract value of approximately $1.9 billion.
An unmanned NASA-contracted rocket exploded shortly after takeoff earlier this evening, and now the rocket manufacturer’s stock price is going up in smoke.Orbital Science ( ORB ) , which has a $1.9 billion contract with NASA for eight supply flights to the International Space Station, had seen its stock climb nearly 3% in market trading today, ahead of the launch. But tonight it’s off more than 15.5%, falling from $30.37 per share to $25.65 per share.That’s more than $287 million in lost market cap, and also raises questions about the pending merger of Orbital’s aerospace and defense group with Alliant Techsystems Inc. ( ATK ) . The two companies announced the merger on April 29, when Orbital stock opened at $34.02 per share and closed at $30.96 per share. Shareholders of both companies are scheduled to vote on the deal December 9. ATK stock is unchanged in aftermarket trading.
Most of the products we develop and manufacture are technologically advanced and sometimes include novel systems that must function under highly demanding operating conditions. From time to time, we experience product failures, cost overruns in developing and manufacturing our products, delays in delivery and other operational problems. We have experienced product and service failures, schedule delays and other problems in connection with certain of our launch vehicles, satellites, advanced space systems and other products, and may have similar occurrences in the future. Some of our satellite and launch services contracts impose monetary penalties on us for delays and for performance failures, which penalties could be significant. In addition to any costs resulting from product warranties or required remedial action, product failures or significant delays may result in increased costs or loss of revenues due to the postponement or cancellation of subsequently scheduled operations or product deliveries and may have a material adverse effect on our financial condition, results of operations and cash flow. Negative publicity from a product failure could damage our reputation and impair our ability to win new contracts .
The "Space & Aviation Analyst" on CNN is named Miles O'Brien
No one?
I was reading somewhere last night that the engines on the rocket were refurbished surplus 1960s era Soviet units.
heard that as well this morning. I guess it's a good reminder that the lowest bidder always wins.
Yep, NASA never had one blowup.
i'd bet a lot of their stuff was made by the lowest bidder too.
Thank goodness for "google".
... or to manufacturers in key Senators/politicians states.
My mom worked for the manufacturer of the solid rocket boosters on Challenger (the failure of which blew it up), and they were totally in bed with the Utah congressional delegation from what she said.
Virgin Galactic says that its SpaceShipTwo space tourism craft has suffered an "in-flight anomaly".The craft was being tested in the Mojave Desert region of California. Virgin Galactic said it would issue a fuller statement shortly.Local police said they were responding to reports of a crash in Cantil.
