All of this activity resulted in sales for the quarter of $23.4 million, up from $21.7 million last quarter, and operating profit of $2.8 million or 12% after purchase accounting adjustments of $1.8 million.

Medical Devices Fiscal '07

The final results for '07 were sales of $67.8 million, operating profit of $6.9 million or 10.2% after $6.2 million of purchase accounting adjustments. This might be considered a reasonable result for entry into a new market, but it 's not what we had originally projected. Our initial projection for '07 was $8 million in operating profit on $40 million in sales of Curlin and McKinley products. We then acquired Zevex and our expectation changed to $65 million in sales and $9.8 million in operating profit. The shortfall in operating profit is related directly to the shortfall in sales of Curlin pumps. So, that 's our problem and we have folks that are hard at work to turn that around.

Medical Devices FY '08

In our last conference call, we presented a plan for this segment that forecasted sales of $109 million. Of that total, a little less than $20 million was the projected sales of Curlin pumps. Given the difficulty we 're having currently in both forecasting and generating sales of Curlin pumps, it would seem prudent to bring the Curlin part of the '08 pump forecast down to a level closer to the $14.3 million that we achieved in '07. Having adjusted the pump forecast in that fashion, we are now forecasting $40 million in total pump sales including the Zevex enteral pumps and the McKinley disposable pump. Sales of administration sets are projected at $32 million, sensors and hand pieces at about $18 million, and $11 million in accessories and equipment sales. The total then would be $102 million, up 50% from last year. But the year-to-year comparison doesn 't mean much since we bought Zevex halfway through. A more meaningful comparison is a 9% increase over the run rate of the most recent quarter.

Given this more conservative sales forecast and a plan to adjust some expense levels, we 're now forecasting operating profit at 14.5%.

Update of Guidance for '08

Now, let me summarize the guidance that we provided for '08. We 're now projecting Aircraft sales of $651 million and operating profit of 11.3%. Space and Defense, with modest organic sales growth and the addition of QuickSet, moves to $228 million in sales and operating profit of 11%. Our Industrial Systems business continues the steady growth pattern of the last few years and we 're projecting a range centered around $493 million - operating profit maintained at 13.2%. We 're projecting another 13% growth step for the Components Group to a new level of $321 million, operating profit of 15.7%, the same level that we 've just achieved. And, we 've moderated our forecast for the Medical Devices Segment to $102 million and operating profit of 14.5%. The total then would be a sales forecast of $1.795 billion plus or minus $10 million. The middle of the range would be a 15% increase over fiscal '07. We 're projecting earnings in the range of $115 million to $119 million. The midpoint of that range would generate $2.69 a share, a nice round 15% increase over the $2.34 that we 've just achieved in '07. On a quarterly basis, we 're now forecasting this pattern: $.62 in the first quarter, $.66 in the second quarter and then $.68 and $.73.

And, now I 'll turn you over to Bob Banta.

This quarter, we 've got some good news regarding cash flow and other balance sheet items. These items add to the good news Bob just covered.

In the last 90 days, our total debt, net of cash balances and after adjusting for $47 million we used to fund the two acquisitions, decreased by $2 million. Receivables increased by $33 million, mostly in our Aircraft Segment and inventories rose by $18 million. About a third of the increase in receivables and inventories comes from either the acquisitions or foreign currency movements. However, our quarterly earnings of $27 million, along with an increase in accounts payable and customer advances of $9 million and a drop in capital expenditures of $7 million provided enough cash so that we could reduce debt. Hopefully, this is the beginning of the improvement that we 're planning on for fiscal '08.