Additional information regarding forward looking statements and risk factors is included in the company's periodic reports filed with the SEC. We caution listeners of today’s conference call not to place undue reliance upon any forward looking statements which speak only as of the date of this call. We undertake no obligation to update any forward looking statements.I’d also like to mention that in addition to reporting financial results in accordance with Generally Accepted Accounting Principles or GAAP, during our call, we will discuss a non-GAAP financial measure, specifically adjusted EBIDTA. Adjusted EBIDTA excludes interest income and expense, income taxes, depreciation, amortization of acquired intangible assets, restructuring expense, impairment of long lived assets, acquisition and other related expense and stock-based compensation costs. A reconciliation of adjusted EBIDTA to GAAP net income from continuing operations is included in the press release we issued this afternoon. I am now pleased to turn the call over to Mercury’s President and CEO, Mark Aslett. Mark Aslett Thanks Bob. Good afternoon everyone and thank you for joining us. I’ll begin with an update on our business for the fourth quarter. Bob will review the financials and discuss our guidance. And then we’ll open it up for your questions. Q4 was the strong financial two year of solid progress for Mercury. On our call a year ago, we said the business was positioned to expand on both the top and bottom lines. We produced consistent growth in revenues from adjusted EBITDA since then. Total revenue for the fourth quarter is $63.6 million, exceeded the high end of our guidance range by 3.6 million. Total defense revenue including ACS and Mercury Federal, increased 40% sequentially and by 20% year over year to $47.9 million. This growth was mainly driven by the $19 million Aegis missile defense order we shipped as planned in the quarter. This was also a strong quarter for commercial revenue, which grew 87% year-over-year to $15.8 million.
The work we’ve done to restructure, refocus and strengthen our defense business over the past two years, has significantly improved Mercury’s operating leverage. Our GAAP earnings from continuing operations in the fourth quarter of fiscal 2010, was $0.77 per diluted share, compared with guidance of $0.25 to $0.28 per share.The major variances to guidance were approximately a $0.32 gain due to the partial release of a tax valuation allowance, as well as a $0.14 gain due to higher revenues and lower operating expenses. Adjusted EBITDA for Q4, increased from $5.9 million a year ago to $12.4 million, compared with our guidance of 9.3 million to 9.9 million. We ended fiscal 2010 with a positive book-to-bill of 1.03. Total backlog including both defense and commercial is up 6% year-over-year and our 12 months backlog is up 27% year-over-year. We expect this backlog to translate into solid year-over-year revenue growth in fiscal 2011. Last quarter, I said that we expected weaker defense bookings in the second half of FY’10 which is the way in which things played out. For the full fiscal year defense bookings were down 18% year-over-year and our book-to-bill was [0.9]. Bookings in MFS came in lower due to shifts in the timing and funding of our largest single program in that business and as mentioned last quarter several deals were also delayed in ACS services and systems integration. I will talk more about both of these businesses in a minute. Read the rest of this transcript for free on seekingalpha.com