Question-and-Answer Session
Operator
The floor is now open for questions (Operator Instructions). First question comes from Joshua Zable. Joshua please state your question.
Joshua Zable - Natixis Securities
Hi, guys. Thanks very much for taking my question here. Just to clarify, I know you kind it's just difficult to hear. As far as the revenues go with sevo, is it, just simplified, basically the orders didn't come through and it was more of a timing issue, or are there other things going on sevo?
Bill Burns
Orders were actually excellent, Josh. That's why we have an $8 million order backlog on sevoflurane.
Joshua Zable - Natixis Bleichroeder
Okay.
Bill Burns
It is $1.4 million in the quarter, and a number of the orders didn't come in September, but with construction in the plant, there was only so much we could get out. We will be shipping the vast majority of that in the fourth quarter.
But we don't know that we will totally catch up with our order backlog, reflecting our ability to package once the plant fully comes online, because of the Christmas holidays. We do think we will be internally caught up by the end of January however.
Joshua Zable - Natixis Bleichroeder
Okay. And then just on the expense side, and again I know you kind of went through this, I guess obviously a lot of expenses are associated with sort of ramping up here. Is it safe to say that in that sort of is behind us in a big way, and kind of given that orders should come through in the next quarter and the following, obviously margins would hopefully improve but just significantly?
Bill Burns
Two things, let me answer the expense question first. I tried to answer that by pointing out that the only change from the second quarter was $200,000 in one-time registration expense from filing 28 European drug applications; there's translation and filing fees here.
Joshua Zable - Natixis Bleichroeder
Okay.
Bill Burns
And second, just to elaborate what's in the press release, we have filled our U.S. sales organization and most of our international positions, so we would expect significant operating leverage on the expense side as our volume grows. Obviously, margins we expect to improve, particularly because we won't have adsorption variances.
Joshua Zable - Natixis Bleichroeder
Okay, great. Then just on image guidance, I know you guys made a couple of minor changes with an additional battery, and you made another little change there to customers. Those that I spoke to seem to appreciate. Can you talk about that business and how that's ramping up?
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