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Operator
Good day, ladies and gentlemen, and welcome to the Omni Light Industries investor conference call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Carl Leaders. Sir, the floor is yours.
Carl Leaders
Thank you very much. Good morning. And thank you all for joining us. With me today is our Chief Executive Officer, Dave Robbins. Our call is being recorded and will be available for playback, the details of which are contained in our press release, released yesterday morning, Monday, November 22nd. The purpose of this call is to provide an update on OmniLight's financial performance and operations as we filed our third quarter 2021 results yesterday morning. After our remarks, we'll open up the line for Q&A. If you've not received or seen a copy of our press release, which we issued yesterday morning, you can find it on our website at www.omni-light.com or email us at d.robbins at omni-light.com or c.leaders at omni-light.com to request a copy. Before we get started, I'd like to remind you that today's discussion will or may include forward-looking statements, which include information regarding OmniLight's performance based on our views of the company's business and the environments in which they operate, our future plans, objectives, business prospects, and anticipated financial performance. These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. We are also mindful of the risks and impacts of changes in the health of the general economy, including the effects from the current COVID-19 pandemic, U.S. and global commercial aerospace markets, and the U.S. Department of Defense budgets. All forward-looking statements should be considered in conjunction with the cautionary statements contained in our press release and the risk factors included in OmniLight's CDAR filings. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. I'd also like to mention that in addition to reporting financial results in accordance with International Financial Reporting Standards, or IFRS, during our call, we may discuss or reference non-IFRS financial measures, specifically adjusted EBITDA, pro forma adjusted EBITDA, and free cash flow. A reconciliation of these non-IFRS metrics, if applicable, is included in our CDAR filings and press releases. Lastly, and last noted, any reference or discussion of our financial results or metrics are in U.S. dollars. I'd now like to turn the call over to Dave.
Dave Robbins
Dave? Thanks, Carl. Good day, everyone, and thank you for joining us on today's third quarter fiscal 2021 investor call. Our agenda for today's call is as follows. First, I will make a few comments about our third quarter results, followed by some remarks in our current business and strategy. And then Carl will conclude our portion of the call with a review of our recently reported results. Our fiscal 2021 third quarter revenue of $1.6 million was up 36% sequentially over 2021 second quarter revenue, largely from increases in commercial aerospace and defense electronics markets. Third quarter 2021 marked the start of commercial aerospace recovery and future strength in defense program funding. Our minus 66K of adjusted EBITDA on the quarter was an improvement of 192K of adjusted EBITDA in Q2, and largely the result of increased operating leverage from higher revenue and ongoing close management of operational efficiency, managing costs and cash flows. For outlook, we see more evidence in the early stages of commercial aerospace recovery, pointing towards further recovery in 2022. Our current funded backlog of over 1.8 million includes several defense products which have long-term viability and have potential future growth. The pipeline for new wins in development includes electronic components used in missile defense and air superiority platform system upgrades, munition components, titanium-engineered fastener components used for lightweight aerostructures, and high-strength engine components for increased fuel efficiency. We are also in the final stage of our sale-leaseback process of our real estate holdings and look to this to help fund our investments in organic and acquisition growth. With that, I'd like to turn the call over to Carl. Carl?
Carl Leaders
Thanks, Dave. Dave has addressed the revenue and adjusted EBITDA So I'll just make a few comments regarding cash. Pre-cash flow, defined as cash flow from operations minus capital expenditures, was approximately a use of $236,000, as compared to a use of $93,000 in the second quarter of 2021. The increased use of cash was due to increased accounts receivable associated with the increased sales in the third quarter. Finally, while the last 12 months have seen a pandemic-driven 29% decrease in sales, our cash position, which is currently at $1.367 million, is the same as it was last year at this time. While we received $400,000 in PP2 funding in the last 12 months, this also speaks to our highly focused attention to cash and spending management during this very challenging period. This completes our prepared remarks. We'd now like to open the call for questions.
Operator
Thank you. The floor is now open for questions. If you do have a question, please press star 1 on your telephone keypad at this time. Questions will be taken in the order they were received. If at any time your question has been answered, you can remove yourself from the queue by pressing 1. Again, ladies and gentlemen, if you do have a question, please press star 1 on your telephone keypad at this time. Please hold while we poll for questions. Okay, we have a question from Manuela. Kramer, please state your question.
Manuela
Hi, Dave, and thank you for a good quarter. I have a question on the supply chain problem. How does it affect you, and if it affects you, Can you increase prices because of that?
Dave Robbins
So we have been affected in a small way with supply chain, but we've offset that with making some small strategic purchases so that, you know, we don't get hurt by supply supplies. We were able to do that, interestingly enough, and still... reduce our inventory levels, but we're managing that. So we're keeping an eye on that and we have seen the inflationary effects of raw materials and have adjusted or in the process of and will continue to look at pricing. It's an ongoing issue, especially with, you know, on the electronic side, it's more a question of supply And on the metal forging side, it's price and supply. There's been quite a bit of increase in costs of raw materials on that side of things. So we're watching it very closely.
Manuela
Thank you.
Operator
Again, ladies and gentlemen, if you do have a question, please press bar 1 on your telephone keypad at this time. Okay, and it doesn't look like we have any further questions.
Carl Leaders
Okay, well, thank you all very much for joining us this morning, and we hope you have a great rest of the day. Thank you.
Operator
Thank you. This concludes today's conference call. We thank you for your participation. You may disconnect the lines at this time, and have a great day.
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