Good day, ladies and gentlemen, and welcome to Nortech Systems' First Quarter 2017 Earnings Conference Call. All lines have been placed on a listen-only mode. And the floor will be open for your questions and comments, following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Paula Graff. Ma'am the floor is yours.

Thank you. Good morning and welcome to Nortech Systems' first quarter 2017 conference call. I'm Paula Graff, Vice President and CFO. And with me is Rich Wasielewski, Nortech's President and CEO. Following my introduction, Rich will offer some comments on our first quarter results and highlights from last week's Annual Shareholder Meeting, including Nortech's vision for the future. Later, in today's call we will respond to any questions. About the shareholder meeting, I should briefly mention that all the proposals up for vote were passed by more than 90% majority, including the slate of eight directors. We recently filed an 8-K with the voting results, if you're interested in more detail. Before we begin, please be advised that the statements made during this call may be forward-looking and are subject to risk factors and uncertainties. Please see the complete Safe Harbor statements in our press release and our SEC filings. Now, I will turn the call over to Rich Wasielewski. Rich?

Thank you, Paula, and good morning, everyone. Yesterday we reported net sales of $28.3 million for the first quarter ended March 31, against $28.9 million for the prior year period. This was in line with our expectations for the first quarter, given our lower backlog numbers when the quarter started. At the end of 2016, we saw many of our large customers adjust their orders to lower demand levels to start the year. Fast-forwarding, during the first quarter our overall 90-day backlog of $23.5 million ended up 15% both sequentially and year over year. To look at our three core markets more closely, our medical customer sales in the quarter rose 18% over the prior year to $13.9 million. Medical comprises 49% of our total revenue. Our 90-day medical backlog increased 34% over the prior year and 10% from the fourth quarter. At the annual meeting last week, we highlighted 12 new medical device and engineering programs wins in 2016, 2 are new multinational accounts and 6 of the 12 programs should go into production over the next year. Our sales to defense and aerospace customers were $3.4 million in the first quarter, down 9% sequentially and off 12% year over year. However, our 90-day backlog ended the first quarter, up 13% sequentially and we're seeing good progress on booking to start the year. The proposed budget increases for defense spending is 10% or $54 billion. Prospects for the budget passing are still unclear. Whatever happens, there is certainly more optimism among the defense contractors than we've seen in a long time. We have several long-term programs underway that we expect will generate consistent quarterly revenue going forward. Our growth will be dependent on the defense budget increases and our ability to expand our offering into the commercial aerospace market.…

Thank you. [Operator Instructions] And there appear to be no questions at this time.

Well, if there are no further - if there are no questions, we'll conclude this call. Thank you for your interest in Nortech. And we look forward to updating you in the future. Have a great day. Thanks, Mike.

Thank you. This does conclude today's call. We thank you for your participation. You may disconnect at this time. And have a great day.