Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question comes from the line of Alex Hamilton with Jesup & Lamont Securities Corp..
Alex Hamilton - Jesup & Lamont Securities Corp.
Good morning.
Geoff Hedrick
Good morning Alex. Hello?
John Long
Hello?
Alex Hamilton - Jesup & Lamont Securities Corp.
Hi, good morning guys, I am sorry. You talked about backlog and how it is sort of eroding, it is no longer really relevant going forward and I know especially on the long term that is sort of hard to gauge. For us in the investment community, what do you think would be the better thing to focus on, would it be exactly these STCs and the bidding proposals? Can you help put our arms around that a little bit and how we gauge the company going forward?
Geoff Hedrick
If I could, I think backlog has some relevance but owing to the extent that it shows – I think in my opinion at roughly a year at present rate it has always been a pretty solid backlog. Much more than that it implies only very, very long-term contracts, which as you know we do not probably book. So it is relevant to the extent that it shows that we have at least a solid base that we can leverage off of. Yes, I think that it is going to be watching us develop the marketplaces over the next year or so in general aviation as we did with Cessna and several other manufacturers have talked to us as well and in the military.
In the military, the cuts in the military are huge, I mean massive cuts and it leaves only the existing fleets and new aircrafts not going to be replacing the existing fleets so they have to do upgrades which they have put off for many years and now we are going to have to do. So we see that as a growing market. I guess a good measure is going to be seeing how we do with booking some new business and hopefully you will see that develop. The disciplines that we have gone through which is trying to get the business back into an efficient and productive state, which I think that we have proven that we have and some productability in the outcome and the results was essential for us as a foundation going forward. Now, we are going to look into the bookings and see how we are doing with the bookings.
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