Convolutional codes based on Hadamard sequences can achieve both orthogonality and variable rate, In contrast with other convolutional coding techniques, these codes incur no processing gain penalty in direct-sequence code-division multiple-access (DS-CDMA) systems, We describe here class of such codes called ''telescopic protection codes.'' These codes enable variable-rate error protection in the manner of rate-compatible punctured-convolutional (RCPC) codes, but preserve the Hadamard orthogonality properties necessary to maintain processing gain that RCPC codes lack.