m SPACE CONTROLS The companyGLYPH<213>s Space segment includes controls for satellites and space vehicles, military  and commercial launch vehicles, and missiles. Revenues from this segment in GLYPH<213>03 were $84 million, down over 21% from the year previous. For military and commercial satellites, Moog designs and builds steering and propulsion  controls and we also provide actuation to position their antennae and to deploy their solar panels. NASA is also a customer on programs such as the Space Shuttle, special vehicles,  and the International Space Station. Fundamentals in these markets depend on several factors.  Military satellite work is driven primarily by the militaryGLYPH<213>s desire for readiness and bandwidth  along with the availability of relevant government funding. Customers for commercial satellites  are the telecommunications companies. New orders depend on the age of their satellites, which  have an average life of seven to ten years, and their need for increased capacity. NASAGLYPH<213>s  science objectives, limited by available funding, drive orders for the Space Shuttle, special  vehicles, and work related to the Space Station.  In GLYPH<213>03, revenues in the Space market were down sharply for three reasons: over-capacity in  the commercial satellite business continued to reduce orders for that type of hardware; in GLYPH<213>02, the  company finished $6 million in work on an experimental vehicle for NASA which caused a negative comparison in GLYPH<213>03; and, although a large one-time refurbishment program on the Space ShuttleGLYPH<213>s orbiters continued, revenues from the on-going refurbishment program for booster actuators decreased due to the hiatus in regular launches. Military and commercial launchers are rockets that deliver satellites to their parking spots in  space. Moog supplies hardware for Titan, Ariane, Atlas Centaur, Delta, and the 2nd generation reusable launch vehicle. In GLYPH<213>03, revenues remained at the same level as the prior year. We also design and build hardware for strategic and tactical missiles and missile defense  systems. Program funding and inventory levels are the catalysts in this market.  In GLYPH<213>03, development work on the Ground-based Midcourse Defense System increased slightly, but a break in production on Hellfire and the completion of the AGM-142 caused revenues to  decline by $5 million. Looking ahead to FY GLYPH<213>04, sales for the Space segment are expected to be up slightly as the Shuttle prepares to resume a regular launch schedule and a refurbishment program on Minuteman III  adds to revenues. FY ’03 Sales: $84 Million FY ’04 Forecast: $89 Million 8