Question-and-Answer Session
Ladies and gentlemen, [Operator Instructions]. And our first question will come from Peter Lawson with Thomas Weisel Partners.
Peter Lawson - Thomas Weisel Partners
Garry, what were the... manufacturing issues that you think they can continue into the September quarter?
Garry W. Rogerson, Ph.D. - President and Chief Executive Officer
What are the cost issues? Was that the question, Peter?
Peter Lawson - Thomas Weisel Partners
What are themanufacturing issues? What was the manufacturing issues?
Garry W. Rogerson, Ph.D. - President and Chief Executive Officer
Okay. The manufacturing issues relate to product ramp up, relating to the new products in the main, which are being effected by global procurement. So, the key for us there is to ramp up to cost [ph] of demand and above in the quarter. And there is still costs relating to those transfer of those activities at the present time.
Edward McClammy - Senior Vice President, Chief Financial Officer and Treasurer
Yeah, and then I think specifically, most of the new products also tie into product transition from one factory to another. As I think Garry went through several of those, and as we have been going through that one thing that happened this quarter is that the transition took more duplicative efforts than we had anticipated and we are expecting the implications of that on some of the cost of goods to carry over into Q4 putting the behind this.
Garry W. Rogerson, Ph.D. - President and Chief Executive Officer
But, some of the duplicate assets actually come into Q4.
Edward McClammy - Senior Vice President, Chief Financial Officer and Treasurer
There is that cost in Q4.
Peter Lawson - Thomas Weisel Partners
And obviously there are systems that you couldn't recognize in the quarter, is that NMR and does that mean--
Garry W. Rogerson, Ph.D. - President and Chief Executive Officer
There are multiple large systems including imaging NMR, SCMS and some of it, let's goes well at Adelaine [ph]. But in the main, it was a magnet related products.
Peter Lawson - Thomas Weisel Partners
NMR imaging.
Edward McClammy - Senior Vice President, Chief Financial Officer and Treasurer
In that Peter as what was really unusual is that we almost, always have one system that's exposed to the line and if doesn't make, we usually have others that make up that short fall. In this case there were multiple systems and I suppose for a variety of reasons, none of those that we expect right at the end across the line made it and there was nothing else that came in as a surprise.
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