"The difference today versus 12 months ago is that we are now more than a year into managing in this challenging environment," Aslett said. "Not only have we improved the cost structure of the business to continue to generate positive cash flow, but our focus on building backlog has put us in a significantly better position than we were at this point last year. Given our focus on cash management and recent expense reductions, we believe that we have created substantial operating leverage in our business. We are confident that, as the defense industry emerges from its current period of uncertainty, this will lead to a significant improvement in Mercury's profitability, cash flow generation and enterprise value over time."Backlog Mercury's total backlog at September 30, 2013 was $133.3 million, a $13.1 million increase from September 30, 2012. Of the September 30, 2013 total backlog, $116.1 million represents orders scheduled to be shipped over the next 12 months. The defense backlog at September 30, 2013 was $114.7 million, a $6.8 million increase from September 30, 2012. Bookings for the first quarter of fiscal 2014 were $46.9 million, a 14% increase, compared to $41.1 million for the first quarter of fiscal 2013. The total book-to-bill ratio was 0.9 for the first quarter of fiscal 2014, compared to 0.8 for the first quarter of fiscal 2013. Revenues by Reporting Segment Mercury Commercial Electronics (MCE) — Revenues for the first quarter of fiscal 2014 from MCE were $44.6 million, representing an increase of $7.8 million, or 21%, from the first quarter of fiscal 2013, as a result of an increase of $5.1 million in defense revenues related to the Patriot and SEWIP programs and an increase of $2.7 million in commercial revenues. Approximately 83% of MCE revenues for the first quarter of fiscal 2014 related to defense business, as compared to approximately 87% in the first quarter of fiscal 2013. Mercury Defense and Intelligence Systems (MDIS)— Revenues for the first quarter of fiscal 2014 from MDIS were $11.1 million, representing a decrease of $4.7 million from the first quarter of fiscal 2013 due primarily to lower revenue from the Gorgon Stare program. The revenues by reporting segment do not include adjustments to eliminate $1.8 million of inter-company revenues included in those reporting segments in the first quarter of fiscal 2014.