MANAGEMENT’S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Twelve Months Ended September 30, 2013 Compared to  Twelve Months Ended September 30, 2012  Revenue and Gross Profit Overview Electrical Power Products Process Control Systems 18 For additional information related to our business segments, see  Note L of Notes to Consolidated Financial Statements included  elsewhere in this Annual Report. Process Control Systems business segment revenues increased  29.1%, or $8.9 million, to $39.5 million in Fiscal 2013. This revenue  increase has been driven by the increase in projects that were  awarded during Fiscal 2012 primarily from municipal and transit  customers. Business segment gross profit, as a percentage of  revenues, decreased to 23.0% for Fiscal 2013, compared to 24.4%  for Fiscal 2012. This decrease in gross profit as a percentage of  revenues was primarily due to the overall mix of project types. Electrical Power Products business segment gross profit increased  4.0%, or $5.3 million, to $137.8 million in Fiscal 2013. Gross profit,  as a percentage of revenues, increased to 21.7% in Fiscal 2013  compared to 19.3% in Fiscal 2012. These increases were primarily  driven by the recovery from the Canadian contract settlement  discussed above, the margins associated with the mix of projects  in process during Fiscal 2012 and 2013, as well as the increased  focus on cost reduction activities. In the fourth quarter of Fiscal 2013, we recovered approximately  $5.1 million related to one large project at Powell Canada, of  which approximately $3.8 million was recorded as revenue and the  remaining $1.3 million was related to amounts recorded to other  assets in prior periods. This recovery related to cost overruns on a  As of September 30, 2013, our order backlog strengthened with  unfilled orders of $516.6 million, an increase of approximately $80  million over the beginning of this fiscal year. Our backlog includes  various projects, some of which are petrochemical, oil and gas  construction and transportation infrastructure projects which take a  number of months to produce. The markets in which we participate are capital intensive and cyclical  in nature. Cyclicality is predominantly driven by customer demand,  global economic conditions and anticipated environmental or  regulatory changes which affect the manner in which our customers  proceed with capital investments. Our customers analyze various  factors including the demand for oil, gas and electrical energy, the  overall financial environment, governmental budgets, regulatory  actions and environmental concerns. These factors influence  the release of new capital projects by our customers, which are  traditionally awarded in competitive bid situations. Scheduling is  matched to the customer requirements and projects may take a  number of months to produce; schedules also may change during  the course of any particular project. Our operating results are  impacted by factors outside of our control, for example, many of  our projects have contracting arrangements where the approval of  engineering and design specifications may affect the timing of the  project execution.  Electrical Power Products business segment revenues decreased  7.5%, or $51.3 million, to $635.3 million in Fiscal 2013. Revenues  decreased primarily due to the completion of certain complex  domestic and international petrochemical and oil and gas  construction projects that were in process during Fiscal 2012.  However, revenues in Fiscal 2013 were favorably impacted by the  recovery of $3.8 million related to cost overruns on a large industrial  project at Powell Canada. This Canadian project experienced  execution challenges in the first half of Fiscal 2012, which negatively  impacted revenue and gross profit in Fiscal 2012. Revenues from  public and private utilities increased $22.7 million to $138.0 million  in Fiscal 2013. Revenues from commercial and industrial customers  decreased $72.1 million to $450.6 million in Fiscal 2013. Revenues  from municipal and transit projects decreased $1.9 million to $46.6  million in Fiscal 2013. We develop, design, manufacture and service custom engineered- to-order equipment and systems for the management and control  of electrical energy and other critical processes. Headquartered  in Houston, Texas, we serve the transportation, environmental,  energy, industrial and utility industries. Our business operations  are consolidated into two business segments: Electrical Power  Products and Process Control Systems. Revenues and costs are  primarily related to custom engineered-to-order equipment and  systems which precludes us from providing detailed price and  volume information. The following discussion should be read in conjunction with the  accompanying consolidated financial statements and related  notes. Any forward-looking statements made by or on our behalf  are made pursuant to the safe-harbor provisions of the Private  Securities Litigation Reform Act of 1995. Readers are cautioned  that such forward-looking statements involve risks and uncertainties  in that the actual results may differ materially from those projected  in the forward-looking statements. For a description of the risks  and uncertainties, please refer to the Company’s filings with the  Securities and Exchange Commission, copies of which are available  from the Company without charge. large project with execution challenges in the first half of Fiscal 2012  which negatively impacted revenue and gross profit in Fiscal 2012 in  our Electrical Power Products segment. Consolidated revenues decreased 5.9%, or $42.4 million, to $674.8  million in Fiscal 2013. Domestic revenues decreased by 1.9%,  or $7.7 million, to $405.1 million in Fiscal 2013 and international  revenues decreased 11.4%, or $34.7 million, to $269.7 million in  Fiscal 2013. Gross profit increased 4.9%, or $6.9 million, to $146.8  million in Fiscal 2013. Gross profit as a percentage of revenues  increased to 21.8% in Fiscal 2013, compared to 19.5% in Fiscal  2012. Operating results by segment are discussed below.