Question-and-Answer Session
Operator
(Operator Instructions). Our first question is from the line of Erik Schneider with UBS Securities.
Erik Schneider - UBS Securities
I heard the number of Legacy units, I think I heard two, but could you tell us how much revenue was associated with the product and service revenue of those two units?
Derek A. Bertocci
The service revenue that came through that was over and above the service revenue for all Legacy units, it is not just necessarily those two, was about $1.8 million during the quarter.
Erik Schneider - UBS Securities
There was $1.8 million incremental?
Derek A. Bertocci
Yes, for service on Legacy units, that $1.8 million represents the amount of revenue that is in excess of the service revenue over the full 4-year service period for those agreements. In other words, it is the acceleration of revenue due to the accounting for these units.
Erik Schneider - UBS Securities
Okay, and the product revenue?
Derek A. Bertocci
$5.8 million again for all legacy units in the quarter.
Erik Schneider - UBS Securities
And you noted the 60 positions were mostly from headquarters, does that mean it is mostly SG&A or is that also R&D, and could it affect gross margins?
Derek A. Bertocci
It does include all functions in the company, so it will impact all areas, operations, as well as a gross margin.
Operator
Our next question is from the line of Junaid Husain with Soleil Securities.
Junaid Husain - Soleil Securities
Just an obligatory CapEx question for you, more focused internationally, could you give us a sense for what is going on with your international customers? What’s been the dynamics for securing financing for CyberKnife, is it easy, is it hard, and then how would you characterize international hospitals versus US hospitals in terms of enthusiasm for CyberKnife, and then the ability to finance this box just given this capital spending environment we are in?
Dr. Euan S. Thomson
I think we have spoken about this before fairly regularly, what tends to drive our international business is more the perceived clinical value of the product rather than the pure economics, and I think for that reason we’re seeing very strong growth internationally, and I think that’s why it seems to have been so robust in these economic conditions. So, overall I think we’re very very positive about our international businesses. It seems to be very strong, particularly as I indicated previously in Europe where clinical value is the biggest driver if anywhere in the world. I think the nature of the customer there, generically, tends to be larger hospitals and large institutions; that’s just the market is structured, and fewer free-standing centers and smaller centers, and that may also be what makes it a very robust environment.
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