Q3 sales were $27.2 million, up from $25.3 million in Q3 last year.
Our COVID-19 impact in the quarter was small compared to Q1, but we still lost approximately $900,000 of revenue due to employee absences related to COVID.
Sales in the defense, the Navy market were $4.5 million in the quarter and now stand at $17.4 million year-to-date, approximately one quarter of our total sales through December.
Q3 net income of $1.1 million or $0.11 per share, up from breakeven in Q3 last year.
Cash is still strong at $69.3 million.
Orders in Q3 were in excess of $61 million, our strongest order recorded ever, driven by $52 million in defense orders.
Our backlog is now nearly $150 million, 70% of which is in the defense market.
I'll discuss the sales detail in the last slide with the quarter at $27.2 million.
The sales split in the quarter was 39% domestic and 61% international.
Last year's third quarter was 53% domestic, 47% international.
Gross profit increased to $6.2 million, up from $4 million last year primarily due to improved project mix as well as volume.
Gross margin was 22.9%, up 6 -- up 160 -- I'm sorry, up from 16% last year, which was a particularly poor quarter last year.
EBITDA margins were 6.7% up from 0.7% in last year's third quarter.
And as I mentioned earlier, net income was $1.1 million up from breakeven last year.
Looking at our year-to-date results, sales in the first nine months of fiscal 2021 was $71.8 million, up from $67.5 million last year.
This is despite our challenging Q1 when the production was at 50% of capacity due to COVID impacts.
Year-to-date sales are 52% domestic, 48% international compared with 65% and 35% respectively last year.
Gross profit year-to-date is $15.5 million, up from 13.7% last year and gross margin is up 130 basis points to 21.6%.
Year-to-date, EBITDA margins were 5.6% versus 3.1% in the first nine months of last year.
Finally, net income was $2 million or $0.20 a share, up from $1.3 million or 13% -- I'm sorry, $0.13 a share last year.
Cash is at $69.3 million, up $1.4 million from the end of Q2 but still down from $73 million at the end of fiscal 2020.
Cash per share is $6.94.
Our quarterly dividend remains firm at $0.11 a share and we have paid out $3.3 million year-to-date.
Capital spending to-date is $1.5 million similar to last year and we expect this -- the total for the year to be between $2 million and $2.5 million in capital for the full year.
Sales for the third quarter were $27.2 million.
Sales for the refining industry were $16.5 million up from $12.2 million.
$9.4 million of the revenue were from two projects for the Chinese refining market.
Sales to the defense industry were $4.5 million and were up slightly year-on-year.
Lastly, our annual guidance remains at $93 million to $97 million, which was communicated during our second quarter earnings call.
At the peak of the second wave in early January, the production departments were operating at no less than 90% capacity.
The orders for defense during the last two quarters were $65 million.
It is important to point out the defense strategy where $100 million of new orders were secured in the last 12 quarters, representing 30% of total orders has been a terrific counter balance to headwinds within our more traditional markets.
Across those same 12 quarters, $40 million in orders were won because of a different execution plan and different selling strategy.
Stated differently, approximately 60% of orders in the past 12 quarters were from our traditional markets or customers and 40% from strategies to broaden revenue streams.
There is not too much different from last quarter to report.
Nonetheless, we expect to build backlog within this segment during the next year with a book-to-bill above 1.
Backlog is $150 million with approximately $100 million for defense and $50 million for the company's more historic markets.
45% to 50% of our backlog is anticipated to convert during the next 12 months.
We guide to revenue for the full year to be between $93 million and $97 million, implying fourth quarter revenue between $21 million and $25 million.
Full year gross margin should fall between 21% to 22%.
SG&A expense at $17.3 million to $17.8 million for the full year and our effective tax rate is planned to be between 22% and 24%.
15% of our total orders since late in fiscal 2019 have come from this strategy.
We have 20 positions that we are hoping to fill over the next two years that would allow us to expand our backlog conversion and drive revenue growth.

Summary:
Q3 net income of $1.1 million or $0.11 per share, up from breakeven in Q3 last year.
Our quarterly dividend remains firm at $0.11 a share and we have paid out $3.3 million year-to-date.
Lastly, our annual guidance remains at $93 million to $97 million, which was communicated during our second quarter earnings call.
There is not too much different from last quarter to report.
We guide to revenue for the full year to be between $93 million and $97 million, implying fourth quarter revenue between $21 million and $25 million.