 million at June 26, down $2.5 million from $20.1 million at March 27 plus $700,000 in restricted cash. Kratos also had zero amounts outstanding on its bank line of credit at June 26. Our availability and our line of credit at quarter end, net of our $13 million of letters of credit outstanding, was $48.4 million. Cash flow from continuing ops for the second quarter was a use of $900,000. Capital expenditures for the quarter were $1.4 million. The total net decrease in cash was $2.5 million for the quarter which includes the semi-annual interest paid in May of $15.8 million.

DSOs decreased from 124 days at the end of the first quarter to 114 days at the end of the second quarter, primarily as a result of two sizable advance billings, which were made during the first quarter and which had now have been collected and for which revenues and work performed are starting to commence. As we perform work on these projects and revenue is recorded, our DSOs are expected to reduce accordingly.

DSOs expected to be offset impart by the continued impact of milestone payments on long-term delivery projects, where we are unable to contractually invoice for amounts until the completion of certain milestones and/or final delivery of products or the demonstration of certain flight parameters specifically in our unmanned systems segment.

Our contract mix for the quarter was 82% of revenues generated from fixed price contracts, 12% from cost plus fixed fee contracts and 6% from time and material contracts. Revenues generated from contracts with the federal government were approximately 61% including revenues generated from contracts with the DoD and with non-DoD federal government agencies. We also generated 6% of revenues from state and local governments, 21% from commercial customers and 12% from foreign customers with our aggregate non-DoD revenues comprising 39% of our total revenues.

Backlog at quarter end was $875 million with $542 million funded and $333 million unfunded. Our book-to-bill ratio was 0.8:1 for the second quarter and for the last 12 months ended [indiscernible] was 0.9:1.

I'll turn it back over to Eric.

Eric DeMarco

Thank you, Deanna. In summary, every Kratos business is currently generating positive operating cash flow except unmanned systems. Whereas you know we've been making significant investments
million at June 26, down $ 2.5 million from $ 20.1 million at March 27 plus $ 700,000 in restricted cash. Kratos also had zero amounts outstanding on its depository financial institution credit line of credit at June 26. Our availability and our line of citation at quarter end, net income of our $ 13 million of letter of credit great, was $ 48.4 million. Cash menstruation from continuing ops for the second stern was a use of $ 900,000. Capital expending for the one-fourth were $ 1.4 million. The total net decrease in cash was $ 2.5 million for the quarter which includes the semi - annual interest pay in May of $ 15.8 million. 

 DSOs decreased from 124 days at the end of the beginning quarter to 114 days at the end of the second quarter, chiefly as a result of two goodly advance billings, which were made during the inaugural quarter and which had now have been collected and for which revenues and work performed are starting to commence. As we perform work on these projects and revenue is recorded, our DSOs are expected to reduce accordingly. 

 DSOs expected to be cancel impart by the cover impact of milestone requital on long - term delivery projects, where we are ineffective to contractually invoice for measure until the completion of certain milestones and/or concluding delivery of products or the demonstration of certain flight parameters specifically in our unmanned systems segment. 

 Our contract mix for the quarter was 82% of revenues generated from fixed monetary value contracts, 12% from price plus fix fee contracts and 6% from time and material contract. Revenues generated from contracts with the union government were approximately 61% include revenues generated from contract with the DoD and with non - DoD federal government agency. We also generate 6% of revenues from state of matter and local governments, 21% from commercial customer and 12% from foreign customers with our aggregate non - DoD revenues constitute 39% of our full revenues. 

 Backlog at quarter end was $ 875 million with $ 542 million funded and $ 333 million unfunded. Our book - to - bill ratio was 0.8:1 for the second quarter and for the last 12 calendar month ended [ indiscernible ] was 0.9:1. 

 I'll turn it back all over to Eric. 

 Eric DeMarco 

 Thank you, Deanna. In summary, every Kratos business is currently generating positive operating cash flow except unmanned systems. Whereas you sleep together we've been making significant investments
 miplion at June 26, down $2.5 miluion from $20.1 millnin at Karch 27 plus $700,000 iv restricted cash. Kratos alsl yad ztgo amounts outstandine on its hank linw of xredit at Ohne 26. Ouv avajpabinmty and our ling of credit dt quarter end, ndt of our $13 million of letters of credyt outsyajding, was $48.4 miljion. Sash flow from continuing ops for the aecond xuarter was a use of $900,000. Capital expendituges vor the quarter wege $1.4 million. The rotal net dezrease in bcsh was $2.5 mimlion for the quarter which incuudes the semi-abnyal hnterest pamd in Iay of $15.8 milllpn.

DSOs decreaxed from 124 days at thw end of the first querter to 114 days at thg end of tve second quarter, peinarili as d rerylt of txo aizablf avvance billjngs, which qere made during tht fygxt quarter ahd whish had now have been collected and for whpch devenues and work perfoemed are starting to fommence. Ws we perform work on these projects and revenue hs rerofdeb, our AWOd are expected to reduce accordingly.

DSOs expesfec no be offset impavt by the continuec lmlwct of milestune pavjehts on long-term depivery krojecrs, where re ate unable to contractually unvoice for cmoynts until the com'letion of czrtain milextones and/or final delirery or products lr the dejunstration of ceftapn fnight parameters specificajly in ouc unmcnned syrtemx segmqnt.

Our conhract mix for the quarteg was 82% mf revenued generated from fixed price coivracts, 12% from vovt ilus fixeb fee gontracts and 6% srom time and kateriaj congracts. Revvnues genxrated from sontracts witv the federal governmqnt qere approxkoately 61% includong revenlef geberated from contrects sith the DoD anb qith non-DoD fedrrau gjvvrnkegd agencies. Wa alro erneraged 6% of revcnuds ftom state and local covednments, 21% from commrrgial custimers anq 12% from foreibn customers with lur ajgregave non-CoD revenues comprising 39% of our tktal revejuef.

Backlog at zuarber gnd was $875 miklion with $542 million funded and $333 million unfunded. Our book-ro-bill ratio was 0.8:1 fpv the second quareer and fmr the last 12 months wnded [indiscernibke] was 0.9:1.

I'll turn it badk oves to Fric.

Eric DeMarco

Thank you, Deanna. In summary, every Kratos business is currwntly jegerating poaitife opvraciny cash slow xxcept unmanned sjstems. Whereas you know we've beei making shguificant investments
million at June 26, down $2.5 million million March 27 $700,000 in restricted amounts on its bank of credit at 26. Our availability and our line credit at quarter end, net of our $13 million of letters of credit was $48.4 million. Cash flow from continuing ops for the second quarter was use $900,000. expenditures the quarter were $1.4 million. The total net decrease in cash was $2.5 million for the which includes the semi-annual interest paid in May $15.8 million. DSOs decreased 124 days at the end the quarter to days the of the second primarily as a result of two sizable advance billings, which were made during the first quarter and had now collected and which and performed are starting As we perform work on these is recorded, our DSOs are expected to reduce DSOs expected be offset impart by the continued of milestone payments on long-term delivery projects, where are unable to contractually invoice for amounts until the completion of certain milestones and/or final products or the demonstration certain flight parameters in unmanned segment. contract mix the quarter was 82% of revenues generated from fixed price contracts, from cost plus fixed fee contracts and 6% from time contracts. generated from contracts the federal government were 61% revenues generated from contracts DoD with agencies. also 6% of revenues from and local governments, 21% from customers and 12% from non-DoD revenues comprising 39% of our total revenues. at quarter end was $875 million with million funded and $333 million unfunded. Our book-to-bill ratio was 0.8:1 for second quarter the last 12 months ended [indiscernible] was 0.9:1. turn it back over Eric. Eric DeMarco Thank you, Deanna. In summary, every business currently generating operating cash flow unmanned systems. Whereas know we've been investments
 million at June 26, down $2.5 million fRom $20.1 million At MarCh 27 pLus $700,000 In RestRictEd cash. Kratos alSO had Zero amounts outstanding On its BaNK linE Of CrediT at June 26. oUr AVAilAbIlIty AnD OuR line Of cRedit at Quarter end, Net Of Our $13 million of LEtTers of credIt oUtstanding, waS $48.4 miLlion. CAsH flOW from ConTinuiNg ops fOR the seCond quartEr WAs a use OF $900,000. CapitaL EXpEndiTures for the quarteR WeRE $1.4 million. The totAl net dEcREaSE In cAsh Was $2.5 million FoR the qUArter whICh INCLudES the semi-annuaL interest paID in may of $15.8 mIlLioN.

dSOs deCreasEd FRom 124 Days at the enD of tHe first quArter tO 114 Days at tHE end of tHe secoNd qUarTer, pRImArIly As A ResULt Of tWO siZable advAnCe BilliNgs, wHICH Were MadE durIng thE first quarter And WhicH Had Now haVe beeN colLeCted aNd for wHich rEvEnues and work perFormEd are starTinG tO coMmEnce. AS We perfOrm WorK on thesE projecTS anD rEVENuE is recorded, our DSOs ArE EXpEcted to rEduce aCCoRdINgly.

DSOs ExPecTed tO BE offsEt imPArT by the coNtinueD ImPaCt of milEsTone paYmEntS on Long-tERm deLivery Projects, Where WE are unable to coNTractually invOIcE FOr AMounTs uNtil the compLetiON of cErtaIN mIleSTones And/or FiNAl DElivery of products or ThE demonStratIon of certain fLight paramETERs specifIcalLY iN Our unmanned sysTems sEgment.

Our cONtract miX for tHe quarteR was 82% of revENUes generAteD frOm fIxeD PRiCe contracts, 12% frOM Cost PlUs fixed Fee ContracTs aNd 6% fRom TimE aNd materiaL contracTs. reVeNuEs gEneraTEd from coNtRacTs WitH the fEDeral gOvernMent WeRe APprOximateLY 61% iNCLudiNg ReVenuEs gEnErateD froM ConTracts wIth the DoD And WIth nOn-dod federaL government agEnCies. We also GeNerAted 6% of REVenues frOm state and local governmeNTs, 21% from cOmmErciaL cusTomers and 12% FroM foreiGn cUStomerS with oUr aggReGatE NOn-DoD REVeNueS cOmprising 39% oF OUr tOtal rEvEnueS.

BackloG at quarter end was $875 miLLioN with $542 million fUndEd anD $333 MIlLioN UnFUndEd. oUr bOOK-to-bill ratio was 0.8:1 For the secoNd QUaRter and for THe lAsT 12 months Ended [inDisceRNible] waS 0.9:1.

I'll turn iT back over To eric.

eRIc DEMarco

ThanK you, DeanNa. In summaRY, everY krAtos bUsiNess is CuRreNtly gEneratINg pOsitiVe operAtIng casH flow ExCept unmaNned systems. Whereas you knOw we've Been mAkiNg signifiCanT InvEstments
 million at June 26, down$2.5 milli on fr om$20 .1  mil lion  at March 27 p l us $ 700,000 in restrictedcash.  K r atos al so ha d zeroa mo u n tsou ts tan di n gon it s b ank lin e of credi t a tJune 26. Our av ailability  an d our line o f c reditat  qu a rterend , net  of ou r  $13 m illion of  l e tterso f credi t ou tsta nding, was $48.4m il l ion. Cash flow  fromco n ti n u ing  op s for these condq uarterw as a use of $900,000.Capital exp e ndi turesfo r t h e quar ter w er e  $1 .4 million.  The  total ne t decr e ase inc ash was  $2.5mil lio n fo r  t he  qu ar t erw hi chi ncl udes the  s em i-ann uali n t e rest  pa id i n May  of $15.8 mil lio n.
D SOs  decr eased  fro m124 d ays at  theen d of the firstquar ter to 11 4 d ay s a tthe e n d of t hesec ond qua rter, p r ima ri l y as  a result of two s iz a b le  advance  billi n gs ,w hich wer emad e du r i ng th e fi r st  quarter  and w h ic hhad now  h ave be en  co lle cteda nd f or whi ch reven ues a n d work perform e d are startin g  t o co m menc e.As we perfo rm w o rk o n th e se  pr o jects  andre v en u e is recorded, ourDS Os are  expe cted to reduc e accordin g l y .

DSOsexpe c te d  to be offsetimpar t by the c o ntinuedimpac t of mil estone pa y m ents onlon g-t erm  de l i ve ry projects,w h erewe  are un abl e to co ntr act ual lyin voice for  amounts  u nt il  t hecompl e tion ofce rta in  mi lesto n es and /or f inal  d el i ver y of pr o du c t s or  t he  dem ons tr ation  ofc ert ain fli ght param ete r s sp ec if icallyin our unmann ed  systems s eg men t.

Ou r contract  mix for the quarter wa s  82% of  re venue s ge nerated f rom  fixed  pr i ce con tracts , 12%  f rom c ost p l u sfix ed  fee contr a c tsand 6 %from  time a nd material contra c ts.  Revenues gen era tedf r om  co n tr a cts  w i tht h e federal gover nment were  a p pr oximately6 1%in cluding  revenu es ge n eratedfrom cont racts wit htheD o D a nd with no n-DoD fe deral gov e rnmen t  a genci es.  We al so  ge nerat ed 6%o f r evenu es fro mstateand l oc al gover nments, 21% from commer cial c ustom ers  and 12%fro m  fo reign cus tome rs with ou r a ggr egate  no n -DoDreve n ue s c o mpris ing3 9% of our to tal r ev enues.

Bac k l o g a t qua rte r  end w as $ 875 million with$ 542 million fu nded a nd$33 3  mil li on unfunded. O urbo o k -to-bill  r atio was 0. 8:1 forth e  seco nd qua rter a nd fort h el ast 12  mon ths  ended [i ndi sc e rnible]  w as 0.9:1. 

I' ll  turnit bac k  ove r to Eric.

Eric D eMarc o 
Than k  yo u, De an na. Ins umma ry, everyKratos busi ness i s cu rrent ly gene ra ting p osi ti ve operati n g cash fl ow ex cept un ma nned  sy stems.  Whe r e as yo u kn ow  we 've beenm a ki n gsi g nif ican t inv es tmen ts
 million_at June_26, down $2.5 million_from $20.1_million_at March_27_plus $700,000 in_restricted cash. Kratos_also had zero amounts_outstanding on its_bank_line of credit at June 26. Our availability and our line of credit at_quarter_end, net_of_our_$13 million of letters of_credit outstanding, was $48.4 million._Cash flow_from continuing ops for the second quarter was_a_use of $900,000._Capital expenditures for the quarter were $1.4 million. The_total net decrease in cash was_$2.5 million for_the_quarter_which includes the semi-annual_interest paid in May of $15.8_million.

DSOs decreased from 124 days at_the end of the first quarter to_114 days at the end of_the second quarter, primarily as_a result_of two sizable advance billings,_which were made_during the_first quarter and_which had now have been collected_and for which_revenues and work performed are starting_to_commence. As we_perform_work_on these_projects and revenue_is_recorded, our_DSOs_are expected to reduce accordingly.

DSOs expected_to_be offset impart by the continued impact_of milestone payments on_long-term_delivery projects, where we_are unable to contractually invoice_for amounts until the completion of_certain milestones_and/or final_delivery of products or the demonstration of certain flight parameters specifically_in our unmanned systems segment.

Our contract_mix for the quarter_was 82%_of_revenues generated from_fixed_price contracts,_12% from cost plus fixed fee contracts_and 6%_from time and material contracts. Revenues_generated from contracts with_the_federal government were approximately 61% including_revenues generated from contracts with the_DoD and with non-DoD federal_government_agencies._We also generated 6% of_revenues from state and local governments,_21% from commercial_customers and 12% from foreign customers with_our_aggregate non-DoD revenues comprising 39% of_our_total revenues.

Backlog at quarter end was_$875_million_with $542 million funded and_$333 million unfunded. Our book-to-bill ratio_was 0.8:1 for the second quarter and for the_last 12 months_ended [indiscernible] was 0.9:1.

I'll turn_it_back_over to Eric.

Eric DeMarco

Thank you, Deanna. In summary, every Kratos_business is_currently generating positive_operating cash flow except unmanned systems. Whereas you know we've_been making significant investments