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EXHIBIT 11.
STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
THREE-MONTH PERIOD ENDED JUNE 30, 1998
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ASSUMING
BASIC DILUTION (2)
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WEIGHTED AVERAGE OF OUTSTANDING SHARES 35,979,989 35,979,989
COMMON EQUIVALENT SHARES:
OUTSTANDING STOCK OPTIONS N/A 1,263,716
OTHER POTENTIALLY DILUTIVE SECURITIES:
CONVERTIBLE NOTES (1) N/A 3,571,429
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SHARES USED IN COMPUTING
NET INCOME PER COMMON SHARE 35,979,989 40,815,134
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NET INCOME $ 7,419,000 $ 7,419,000
ADJUSTMENTS ASSUMING DILUTION:
INTEREST EXPENSE ADJUSTMENT, NET OF APPLICABLE TAXES N/A 985,565
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NET INCOME $ 7,419,000 $ 8,404,565
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NET INCOME PER COMMON SHARE $ 0.21 $ 0.21
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SIX-MONTH PERIOD ENDED JUNE 30, 1998
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ASSUMING
BASIC DILUTION (2)
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WEIGHTED AVERAGE OF OUTSTANDING SHARES 34,408,545 34,408,545
COMMON EQUIVALENT SHARES:
OUTSTANDING STOCK OPTIONS N/A 1,304,037
OTHER POTENTIALLY DILUTIVE SECURITIES:
CONVERTIBLE NOTES (1) N/A 3,571,429
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SHARES USED IN COMPUTING
NET INCOME PER COMMON SHARE 34,408,545 39,284,011
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NET INCOME $ 13,938,000 $ 13,938,000
ADJUSTMENTS ASSUMING DILUTION:
INTEREST EXPENSE ADJUSTMENT, NET OF APPLICABLE TAXES N/A 2,039,645
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NET INCOME $ 13,938,000 $ 15,977,645
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NET INCOME PER COMMON SHARE $ 0.41 $ 0.41
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NOTES:
(1) - ON SEPTEMBER 16, 1997, THE COMPANY SOLD $100 MILLION OF 5% CONVERTIBLE
SUBORDINATED NOTES DUE OCTOBER 2002. THE NOTES ARE CONVERTIBLE AT THE
OPTION OF THE HOLDERS INTO ORBITAL COMMON STOCK AT A CONVERSION PRICE OF
$28.00 PER SHARE.
(2) - SUBSIDIARY STOCK OPTIONS THAT ENABLE HOLDERS TO OBTAIN SUBSIDIARY'S
COMMON STOCK PURSUANT TO EFFECTIVE STOCK OPTION PLANS ARE INCLUDED IN
COMPUTING THE SUBSIDIARY'S EARNINGS PER SHARE, TO THE EXTENT DILUTIVE.
THOSE EARNINGS PER SHARE DATA ARE INCLUDED IN THE COMPANY'S PER SHARE
COMPUTATIONS BASED ON THE COMPANY'S HOLDINGS OF THE SUBSIDIARY'S STOCK.
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998, ALL SUCH SUBSIDIARY
STOCK OPTIONS WERE ANTI-DILUTIVE.