Jeff Kaminski, Executive Vice President and Chief Financial Officer
Thank Jeff. I guess first before start there. Rob, if you could please allow a follow up question as people are dialing in. I’m not sure the first two, if they had a follow up question or not but two questions per person is fine. Relating to Houston, I want to clarify few defects that we see. We have seen some [inaudible 29:11] reports trying to estimate the percentage of our business etc. etc. associated with it. For 2014, as the percentage of our total housing revenues, Houston represented about 8.5% of the total company’s revenue. So again, you know, like many things with the company – because of the higher ASP in our west coast operations – although the delivery and the community count in the Houston market were higher, it was really only an 8.5% total mix revenue. In terms of deliveries it was about 14%, in terms of year-end community count it was about 16%. That’s one thing we wanted to clarify, I think, in relation to that business. Megan, did you have a follow up question?
Megan McGrath, MKM
I do. I just wanted to ask a little bit about your one cue guidance on revenues $440 to $490. That also sounds like you might have a lower backlog conversion rate in the quarter. And you talked a little bit about, sort of, closings coming in lower than expected this quarter. So is it the same issues impacting you next quarter that did this quarter, could you talk a little bit about that?
Jeff Mezger, President, Chief Executive Officer and Director
Well, Megan, our backlog rotation right now as we looked at it entering the year. Our backlog is up. It has waited a little more through early stage construction or homes that have now been started but won’t be completed till the 2nd Quarter. So, we do expect our backlog conversion to go down relatively to the prior year. It’s the way the backlog is positioned; over time you will see it get into a better balance.
Jeff Kaminski, Executive Vice President and Chief Financial Officer
I will just add to that a little bit. On the built times – we have also seen a slight expansion of built times, which is due, what I would say, due primarily to the higher price point products that we are building right now today, and to tighter labor market conditions. So, I think the combination of the two factors has impacted our expectation on 1st Quarter backlog conversion.
Operator
Thank you. Our next question is coming from the line of Robert Whitnall with RBC. Please ask your question.
Robert Whitnall, RBC
Ok guys. This is actually Colin, filling in for Bob. So a quick question on your long term target of 20% gross margin. You said, this is not going to be achievable in 2015, but what would you think your time and expectation for achieving this goal would be?
Jeff Mezger, President, Chief Executive Officer and Director
A lot of it, Colin, will be impacted by market conditions. From time to time we will review all the different things that we are addressing to improve our gross margin and the message we want to make sure everyone heard is: we are starting out of the gate lower than we did a year ago, and with that it makes 20% a much higher hurdle to get to. If your first half is well under, that means, you have to be well over it second half to average 20, and we don’t think we can do that today. We are sure that we would continue to have sequential improvement and it remains our new term goal which I don’t think we can get to in 2015.
Robert Whitnall, RBC
Thank you.
