Question-and-Answer Session
Operator
Your first question comes from Jinsong Du - Credit Suisse.
Jinsong Du - Credit Suisse
Congratulations on the results. You mentioned in the slides that you now have 80 clients. I remember during the IPO road show that it was at 70. I understand you may not be able to disclose the specific names of the additional clients, but could you share with us these additional ten clients, whether they are mainly for research manufacturing or for the lab services? Also, whether they are major pharmaceutical companies or small biotech companies, please?
Ge Li
Hi, Jinsong. Thank you for your questions. During the last nine months indeed we had new customers. The customers are from both laboratory services and the research manufacturing. Mainly, we have added some large biotech companies and also some small biotech companies.
Jinsong Du - Credit Suisse
Is it very well spread, in the sense of 50-50, or is it geared more towards one segment?
Ge Li
I would say about 80-20 and more towards our laboratory services.
Operator
Your next question comes from Tycho Peterson – JP Morgan.
Tycho Peterson - JP Morgan
Starting out with the manufacturing business, you talked last quarter about some of the issues in Europe and Vertex not taking delivery of the API. Can you give us a sense of whether that's been worked through? The underlying question stems around the fact that I guess the deferred revenue balance increased a little bit.
Benson Tsang
For the deferred revenue, if you look at our balance sheet we have $19.9 million as of September 30, 2007. This represents primarily payment from our customers for services provided and material we manufactured. A significant portion of the balance is actually from our manufacturing customer. We are in discussions with the customer right now about the shipment schedule. We actually have started a shipment in Q3 and we expect to ship the remaining goods in our inventory in the next few months.
Tycho Peterson - JP Morgan
Has your visibility around that customer changed at all? There's been some noise on the competitive front from Vertex. Has there been any kind of underlying change in the level of visibility you have? It sounds like the drug is supposed to move forward in the first quarter next year now.
Ge Li
Well Tycho, as our company policy, we don't discuss customers' information without the consent from the customer.
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