Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Colby Synesael with Merriman. Please proceed.
Colby Synesael - Merriman
Hey, thank you for taking my question.
Keith Olsen
You are welcome, Colby, how are you?
Colby Synesael - Merriman
Good, thanks. So, quick question. Regarding your 2008 EBITDA guidance, can you talk about how much of your build-up is, specifically with New Jersey is built into that in terms of the cost that's associated with that build-up before you actually start to see revenues?
George Pollock
Sure. We filed an 8-K with respect to the New Jersey site, so the extent that they are certainly public. With respect to the time to build versus time to revenue, we will start to incur cash line expense in the middle of the year and start to incur the incremental headcount and utilities about that time.
Revenue is expected to come online in the third quarter, in 2008, as we mentioned right about 1,300 cabinets of capacity. The impact in 2008 from the New Jersey site isn't necessarily meaningful to the 2008 guidance.
Colby Synesael - Merriman
Okay. And obviously, we saw a nice sequential uptick in margin expansion in this quarter. Was there anything one-time there or was it just a matter of the business hitting a significant point in terms of hitting scalability, just a little bit of color there would be helpful as well? Thank you.
George Pollock
Sure. Continued scale in the business, no one-time items. There was on the pressure side, obviously with seasonality and utility expense was more than the second quarter, but the increase in billable cabinets, almost 450 cabinets billable at the end of the second quarter or third quarter versus the second quarter, and the commensurate revenue associated with those cabinets has driven nice scale in the business in the third quarter.
Colby Synesael - Merriman
Great, congratulations.
Keith Olsen
Thank you.
Operator
Your next question comes from the line of Gregory Miller with Deutsche Bank. Please proceed.
Gregory Miller - Deutsche Bank
Thanks guys. Congratulations.
George Pollock
Thanks, Greg. How are you?
Gregory Miller - Deutsche Bank
Good, good, great with the quarter. Maybe to just recap real quickly, I just got a little bit distracted there when you were going through the total additions and what the inventory is going to look like as we roll through 2008 and 2009.
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