Despite the revenue shortfall, the backlog of orders increased significantly to $10.1 million as a result of the booking of $7.8 million in new orders during the first quarter of 2007. The Company's backlog of orders at the beginning of the quarter was $5.9 million. The new orders were spread evenly between the Company's SI Systems' lines of business.
The SINTHESIS Software Suite, a group of software-driven order picking modules, was the foundation for $1.7 million in orders from an integrator for a high-quality fashion jewelry retailer. A well known automotive company awarded the Company a $2.8 million order during the first quarter to apply the ergonomic towline product to building motor assemblies, where the previous utilization of this technology centered on the production of motorcycles, lawnmowers, golf carts, and snowmobiles.
Len Yurkovic, Acting CEO of Paragon Technologies, said, "Although we are disappointed in the first quarter 2007 earnings, we are elated by the 70% increase in backlog of orders, which lays an excellent foundation for financial performance for the remainder of this fiscal year. With the current year quoting rate up over 15% versus the prior year, I am confident that the 2007 annual revenue will exceed that of last year, with corresponding favorable profitability."