Operator: Good morning, and welcome to the Rockwell Collins Third Quarter Fiscal Year 2013 Earnings Conference Call. Today's call is being recorded.
For opening remarks and management introductions, I would like to turn the call over to Rockwell Collins' Vice President of Investor Relations, Steve Buesing. Please go ahead, sir.
Steve Buesing - VP, IR: Thank you, Tina, and good morning to all of you on the call. With me on the line this morning are Rockwell Collins' Chairman and Chief Executive Officer, Clay Jones and Senior Vice President and Chief Financial Officer, Patrick Allen.
Today's call is being webcast and you can view the slides we will be presenting today on our website at www.rockwellcollins.com under the Investor Relations tab.
Please note, today's presentation and webcast will include certain projections and statements that are forward-looking. Actual results may differ materially from those projected due to certain risks and uncertainties, including but not limited to those detailed on Slide 2 of this webcast presentation and from time-to-time in the Company's Securities and Exchange Commission filings. These forward-looking statements are made as of today and the Company assumes no obligation to update any forward-looking statements.
So, with that, I'll turn the call over to Clay.
Clayton M. Jones - Chairman, President and CEO: Thanks Steve and good morning everybody. Late last year I characterized fiscal year 2013 as a year of transition and this quarter's performance illustrates our progress along that journey.
Our third quarter results once again demonstrate the kind of operating performance that this company is capable of delivering, even as we wait for overall revenue growth to return.
So let's start by looking at the sales results. Revenue came in as expected with 7% Commercial Systems growth where most notably our aftermarket increased 13%. That growth was offset by the anticipated decline in Government Systems of 11%. As the impacts of sequestration particularly impacted some of our short cycle products and order timing.
Now the net effect was a 3% decline in revenue which I believe will represent the low watermark in year-over-year percentage comparisons for both Government Systems and Rockwell Collins overall with improvements beginning in our Q4.
Segment operating margin performance was exceptional across both business expanding by 140 basis points up to 22.4% of sales. In commercial systems operating margins were up 340 basis points to 23.4%. The third best quarterly margin rate we have ever posted for this business rivaling the rate we saw in 2008.
In Government Systems operating margins were 21.4%, down just 40 basis points despite a dramatic sales decline as the benefits of cost reduction actions were able to mostly offset the headwind from our lower revenue. Our ability to manage through a very dynamic market environment further demonstrates the strength and resiliency of our company's unique and balanced business model.
Now that performance allowed us to increase operating earnings by 3% and with the benefits of our share repurchase program, we increased earnings per share by 5% to $1.20 a share. And as we’ve done throughout the year, we had another good quarter with cash flow well ahead of last year. As we have seen almost continuously over the last four or five years, there are plenty of changes to note this quarter across our served markets.