I have been monitoring ORB pps for some time but not currently a holder and have not yet looked that deeply at the company. Of course on the surface is the upfront concern/question of the rapidly increasing A/R. Usually when you don't get paid it leads to a lawsuit which can often lead to revenue writeoffs, although I have not read the specifics of this particular lawsuit or have any insights on the merits of the case. 1.5B is substantial for this company, roughly size of year's revenue and larger than entire marketcap. Anybody care to elaborate?
The build in the A/R is not a concern beyond Orbital's ability to successfully complete it's COT and CRS contracts and deliver cargo to the ISS. It is merely a by product of cost of completion accounting methodology to recognize revenues under that contract. It is not that they are not collecting monies due them. The lawsuit involves The exclusive arrangement that ULA has with a rocket producer for the RD180 engine,which Orbital would require to build additional Antares launch vehicles for contracts beyond the existing one with NASA. My question pertains to the impairment of the relationships which already exist between Orbital and the much larger Boeing and Lockeed. They have quite a bit of business with both those companies.