Sales of propulsion controls and mechanisms for satellites and space vehicles were also up about $2 million. Our satellite customers are doing well, particularly in the commercial business. Demand is strong for HDTV, the WIFI internet, satellite radio, GPS, and high resolution mapping.

Increased work on our Minuteman refurbishment programs and on the ground-based interceptor for missile defense provided a $2.6 million increase in the Strategic Missile and Missile Defense category. Tactical Missile sales were up in the quarter reflecting increased production of Hellfire and TOW. And last, but by no means least, the Constellation program generated a total of $1.5 million in sales in the quarter. Constellation is the new name for the collection of programs which will replace the Space Shuttle. It includes the Ares I, crew launch vehicle, and the Orion, crew exploration vehicle. Constellation will be a big program for us. This is just the beginning.

Margins in the quarter of 12.1% continued the excellent margin performance in this segment throughout this fiscal year. Were it not for the purchase accounting adjustments resulting from the QuickSet acquisition, margins would have been 12.7%.

Space and Defense '07 Total

Fiscal year '07 was a banner year for the Space and Defense segment. Sales of $185 million were up 25% from the year previous. With the exception of tactical missiles, sales were up in every product category. The total sales increase was almost $37 million, and about a third of that was the surge in deliveries on the Marines ' Light Armored Vehicle. This program provided revenues of $17.6 million in this year. The other big contributor in Defense Controls was an increase of almost $10 million in our work on Future Combat Systems.

The satellite and space vehicle business was up 16% to a total of over $51 million. I mentioned a minute ago the strength in the commercial satellite business which we believe will continue. We all remember the lean years in the commercial satellite business, but it appears that we 're now back to 25 to 30 commercial geosynchronous satellites a year.

Strategic Missile and Missile Defense product lines were up slightly driven by increases in the EKV Ground Based Interceptor.

We 've seen the beginning of the Constellation Program, the Space Shuttle Replacement, and it generated over $2 million in revenue in the year. And we have experienced growth of 26% in naval applications to a new total of over $7 million.

Margins in the Space and Defense sector finished the year at 13.1%, up dramatically from the 9% of over a year ago.

Space and Defense for '08