Question-and-Answer Session
Operator
(Operator instructions) And our first question does come from the line of Angus Burton with Marathon Capital Management. Please go ahead at this time.
Angus Burton – Marathon Capital Management
Hi guys.
Mark Blodgett
Good afternoon.
Angus Burton – Marathon Capital Management
Can you – just have a couple of specific questions first. Can you tell me from your record book, the backlog was at the end of last quarter?
Tom Losik
Over $11 million.
Angus Burton – Marathon Capital Management
Lovely.
Tom Losik
We’re negatively impacted from foreign currency changes about a half a million, and then –
Angus Burton – Marathon Capital Management
I’m sorry, what?
Tom Losik
We’re about $11 million and going to about $10.1 million, and about half of that decrease was due to foreign currency changes and mostly in the –
Angus Burton – Marathon Capital Management
Okay. Second question is on the interest expense. It looks like – over the last four quarters it’s about doubled? Are you looking at any refinancing or restructuring things like that?
Tom Losik
Our actual cash interest expense has actually been fairly flat year-over-year and quarter-over-quarter. Some of what you see in the other interest and income expense is mainly foreign currency exchange losses that we are recognizing during the change of the currency rates.
Angus Burton – Marathon Capital Management
Thank you.
Operator
(Operator instructions) And our next question comes from the line of Ronald Oveter with Capital Partners. Please go ahead at this time.
Ronald Oveter – Capital Partners
Yes, thank you. Good afternoon. I have two questions. And the first is I gather – in terms of this quarter, if you accept the acquisition expenses for Virtek, you would have had a normalized EBITDA but close to over $700,000 is that correct?
Mark Blodgett
That’s correct.
Ronald Oveter – Capital Partners
So is this true – do you have enough visibility to annualize that at this point? Can you say you’re looking forward that you’re at that run rate right now, in the normalized basis.
Mark Blodgett
Well, I would say we’re on a good track as I mentioned. And that is where I made a comment about – this quarter really demonstrates the overall operating leverage of the business. We are definitely mixed dependent. We had very strong sales of our highest margin products, as we sell more, for instance, in the biomedical stage that tends to be very high margin as we do more defense business. In certain cases here is a pretty decent margin, so we kept – we get different – we have four different business units, we have three product lines as you know, and depending on what that mix is, I think we have a lot of things going in our favor in Q3.
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