Question-and-Answer Session
Operator
We will now begin the question-and-answer session. (Operator instructions) Our first question comes from the line of Steve Salberta with Boenning & Scattergood. Please go ahead.
Steve Salberta – Boenning & Scattergood
Hi guys.
Bob Corey
Hi there.
Steve Salberta – Boenning & Scattergood
Can you talk about the mix of revenue of product relative to what you were thinking going into the quarter? Was this situation where you expected to sell a lot more of the new products and the older wasn’t in demand?
Bob Corey
Yes, this is Bob. I will go and take that question. We had expected that our newer products would be the larger sellers for the quarter, right? And that was where we were particularly were hard hit, because when we brought down inventory in Q4, it was our high runners that were selling in Q4. And then as the supply chain firmed up in Q1, the higher volume products we had difficulty getting to ship.
Steve Salberta – Boenning & Scattergood
And what is or why was there a change there in demand? Do you have a lot of demo units out there I mean or is it just a function of decision making by your customers?
Bob Corey
Yes, what we are trying to say is, we didn’t really see a significant change or drop in demand. What we saw was a continuous demand and our inability to deliver the products is what impacted the revenue, right? So we saw our bookings in backlog actually increased by over $6 million flowing into Q2.
And our supply chain basically extended their lead times as they were trying to assess the economic recession impact like we were in Q4 as well, right? So we are trying to be really clear there is not a decrease in demand for our products. It really was the combination of Q4 taking the inventory down and the supply chain firmed up on us in Q1.
Steve Salberta – Boenning & Scattergood
Okay. Can you tell us how much of your revenue guidance or I guess the implied product revenue – how much of that you have covered in backlog at this point?
Bob Corey
Yes, we don’t disclose the actual backlog. But we did comment in our prerelease because of the demand situation, the backlog and deferred revenue did increase by over $6 million in the quarter, but we don’t disclose the total backlog.
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