Question-and-Answer Session
Operator
Thank you, Mr. O'Leary. We will now begin our question-and-answer session. (Operator Instructions). Our first question comes from Peter Lisnic of Robert W. Baird.
John Householter – Robert W. Baird
Good morning. It’s actually John Householter on for Pete.
James O'Leary
Hi, John.
John Householter – Robert W. Baird
Just a couple of questions for you. First off, could you quantify just in terms of both revenue for the quarter and then what it did to orders and backlog what exactly Avon contributed?
James O'Leary
Sure. John, you get to ask that question one time because going forward, the integration process with Avon is really pulling that into our existing bearings operations. And we’ll be toggling capacity between our existing facilities including the one that will be opened later in the year in Mexico. And, you know as an acquired entity Avon really begins to lose its separateness, you know in to the second quarter, really beginning in the first. Now, that said, it was around pretty autonomously during the first quarter that’s why we gave you the acquisition adjustments. The sales were about 4.5 million. The orders were about 7 million. And the backlog acquired plus built during that fourth quarter of 2007 was about 36.5 million. That’s 4, about 4.5 in sales, about 7 in orders, and about 36.5 of backlog added to Kaydon to the end of 2007.
John Householter – Robert W. Baird
Okay. Thank you for that. And I understand it’s being integrated. And I assume, kind of natural follow up to that, the CapEx outlook you have is some of that is going into Avon itself, right, revenue of 75 million?
James O'Leary
A little bit. But a lot of it is still the continuation of our existing Mexico expansion and some internal capital at Sumter. We’ve made some changes to accommodate more capacity going forward for wind-energy and heavy equipment. It will include some capacity expansion or I’d say modest expansion and improvement of the existing capabilities at Avon. But, again, it will fit seamlessly into our existing operations.
John Householter – Robert W. Baird
Okay. Thank you for that. And then turning to cash?
James O'Leary
John, we’re going to limit you. This is your last question because we’re trying to limit people to one or two tops.
John Householter – Robert W. Baird
Okay. It looks like you’re classifying some of your securities as available for sale. Are there, have you guys taken losses and just taken the hit through equity? Or, I mean what’s the exact status there? Have you taken kind of adjustments through shareholders equity that aren’t through the income statement?
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