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EXHIBIT 11.
STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
THREE-MONTH PERIOD ENDED SEPTEMBER 30, 1998
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ASSUMING
BASIC DILUTION (2)
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WEIGHTED AVERAGE OF OUTSTANDING SHARES 36,757,055 36,757,055
COMMON EQUIVALENT SHARES:
OUTSTANDING STOCK OPTIONS N/A 843,738
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 36,757,055 41,172,222
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NET INCOME $ 8,611,000 $ 8,611,000
ADJUSTMENTS ASSUMING DILUTION:
INTEREST EXPENSE ADJUSTMENT, NET OF APPLICABLE TAXES N/A 224,000
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NET INCOME $ 8,611,000 $ 8,835,000
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NET INCOME PER COMMON SHARE $ 0.23 $ 0.21
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NINE-MONTH PERIOD ENDED SEPTEMBER 30, 1998
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ASSUMING
BASIC DILUTION (2)
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WEIGHTED AVERAGE OF OUTSTANDING SHARES 35,199,984 35,199,984
COMMON EQUIVALENT SHARES:
OUTSTANDING STOCK OPTIONS N/A 1,153,821
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 35,199,984 39,925,234
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NET INCOME $ 22,549,000 $ 22,549,000
ADJUSTMENTS ASSUMING DILUTION:
INTEREST EXPENSE ADJUSTMENT, NET OF APPLICABLE TAXES N/A 2,264,000
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NET INCOME $ 22,549,000 $ 24,813,000
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NET INCOME PER COMMON SHARE $ 0.64 $ 0.64
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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.