Question-and-Answer Session
Operator
(Operator instructions) We’ll go first to Michael Lewis with BB&T Capital Markets.
Michael Lewis – BB&T Capital Markets
Hi Tim, Hi Stephen, how are you?
Tim Conver
Hi, Michael how are you?
Michael Lewis – BB&T Capital Markets
I’m fine. Okay, so it was a really nice quarter, strong margin and very much a surprise on my side, but my question is you talked a little bit about the GO customer funded R&D in the quarter. What exactly was that number and did any of that revenue come in earlier than you had anticipated on your internal plan?
Stephen Wright
Mike we don’t break down individual programs, but for the quarter of project R&D in total was 24% of total company revenue Global Observer would be the lion share of that. In terms of the timing, I think the timing is consistent with our expectations. Its Global Observers have large project and is building up overtime and I think its proceeding more or less according the plan.
Michael Lewis – BB&T Capital Markets
Okay. Also just one more question and I’ll get out of the way here. If you look at your total UAS revenue, what proportion is PBO at performance based logistics and can you tell us what level of year-over-year growth that you’re seeing in that area of your line item at this time?
Tim Conver
Well, Mike this is Tim. It’s not performance based logistics. The logistic aspect of that service line is spare parts, repairs, training and I guess upgrades, yes, Stephen pointing out upgrades as well. So the spare parts and repairs or the maintenance is typically on a cost plus basis and its not associated with the performance based the contract.
Michael Lewis – BB&T Capital Markets
May be what I’m trying to gather here is this part of the UAS revenue stream growing at a higher clip versus the production side of revenue stream.
Tim Conver
Well, I think the only way that I can answer that is to point out where its been and where it is in Q1, because we are not guiding on that element going forward in fiscal ’08 services company wide and its primarily UAS. Services were 30% of total company sales and in Q1 continues to be around that at 28% of revenue.
Michael Lewis – BB&T Capital Markets
Okay, that’s very helpful. Thank you, Tim.
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