Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Juan Noble. Please proceed with your question.
Juan Noble - Taglich Brothers
Just a question, I am just keying in on the comment that you made about the possibility that your sales on the downside may have [slight] sold during the fourth quarter. I know you don't give out detailed or quantitative guidance. But could you just give us some sense of what you feel that the rate of recovery will be to let's say revenues that you generated in fiscal '08? What the velocity will be over what timeline it might unfold?
Karl Puehringer
Let me give you some information as it relates to how brief you the future and the current situation of our market. Several data points, first of all, if you read the recent price releases from the OEM price manufacturers, they have started to report stabilization in new price activity, and even with first signs of a revival, especially in the sheetfed segment.
When you look at our revenues and the exposure with OEM price manufacturers being the sales related with new price activities, I am looking back into '05 it was more than 50% then. In the meanwhile, in '09, it was closer to 40%. That is because of the strength of our recurring revenues and also our active sales on retrofits.
We believe that as I mentioned, that we have seen a low point for our business related with new price activity in the third quarter of this past fiscal year, A, because of those recent releases from price manufacturer and B, in that third quarter, we have also faced the additional effect from reduction of inventory levels throughout the supply chain and that has impacted us, especially in the third quarter.
Some encouraging signs that we're currently seeing I mean, we have started our '09 fiscal year with a backlog of $48 million, that backlog has then been reduced and has remained during the third and fourth quarter somewhere in the range between $37 million to $40 million. We have ended this fiscal year at $40 million and in the meanwhile, with the order activity in fiscal year '10, we have been able to increase that steadily to $44.6 million, as of last week.
Second encouraging sign, when we are looking at our historically revenue distribution, approximately in Q1, we report 23% of our annual revenues, in Q2 and Q3, approximately 25% in each of those two quarters and in Q4, 27%.
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