With me today are Bill Swanson, our Chairman and Chief Executive Officer; and Dave Wajsgras, our Chief Financial Officer. We'll start with some brief remarks by Bill and Dave, and then move on to questions.Before I turn the call over to Bill, I'd like to caution you regarding our forward-looking statements. Any matters discussed today that are not historical facts, particularly comments regarding the company's future plans, objectives and expected performance, constitute forward-looking statements. These statements are based on a wide range of assumptions that the company believes are reasonable, but are subject to a range of uncertainties and risks that are summarized at the end of our earnings release and are discussed in detail in our SEC filings. With that, I'll turn the call over to Bill William H. Swanson Thank you, Todd. Good morning, everyone. Raytheon's off to a good start in 2012. First quarter sales, adjusted margins, EPS and cash flow were all ahead of expectation. Our continued solid operating performance was once again driven by our strong execution. As a result of this performance, we're raising our EPS guidance for the year. Overall, I'm pleased with how the company is operating. We remain focused on delivering the best value across our broad portfolio of programs and technologies, and we're well-aligned with our customers evolving requirements [ph]. We are adapting our proven technologies for new and innovative applications. As an example of how Raytheon is able to leverage cost-effective solutions that can be brought to the market quickly is a recent contract we won to develop the Accelerated Improved Intercept Initiative, or as we call it AI3. This system will detect and destroy incoming rockets fired at forward-deployed forces, and it adapts Raytheon's proven missile and sensor technologies for new application in a rapid fashion. Another example is our Multi-Function Radio Frequency System Radar, which we affectionately call MFRFS. This system was originally developed as part of the Army's future combat system program. Now in response to an urgent operational need, we received an award to develop a Ku Band version to help better detect rocket, artillery and mortar threats. Both of these are truly life-saving capabilities for our men and women in uniform.
On a different note, given the ever evolving nature of technology, our ability to develop innovative counter technologies remains key to keeping our defense capabilities on the cutting edge. Part of our strategy is continue to invest and develop new capabilities for cybersecurity and electronic warfare applications that are aligned with our customers' requirements. We're doing all of this, while at the same time continuing to improve our operating efficiency.As many of you are aware, an advantage for Raytheon is our strong position in global markets. Our International business represented 25% of our total sales and 27% of our bookings in the quarter. Emerging threats are driving demand for our products around the globe, in particular the Middle East and Asia Pacific regions. Our opportunities range from large integrated air and missile defense systems to precision weapons and missiles, to intelligence and information systems and to a wide variety of ISR solutions for both military and civil markets. In the quarter, we have strong class flight bookings, which represented 26% of the total bookings. This is yet another example of how the diversity of Raytheon's portfolio contributes to our overall success. For the company, total backlog was up approximately $600 million year-over-year, and on a funded basis, our backlog is up over $500 million from the end of 2011 and up approximately $1.2 billion from the same period last year. Overall bookings in the quarter were in line with what we had expected. This follows a very strong fourth quarter where we had a book-to-bill ratio of 1.11. As we mentioned on our last call, we expect bookings in the back half of the year to be better than the first half. Last month we announced a 16% increase in our dividend per share. This is the eighth consecutive year in which we increased our dividend, and as a contributor of our overall balance capital deployment strategy and reflects our confidence in our cash generation potential and the strength of our overall financial portfolio. Read the rest of this transcript for free on seekingalpha.com