Question-and-Answer Session
Operator
Thank you, Mr. Galaznik.
(Operator Instructions) Your first question comes from the line of Steve Levenson of Stifel Nicolaus. Please proceed.
Steve Levenson - Stifel Nicolaus
Thanks. Good afternoon, Ken.
Ken Galaznik
Steve, how are you?
Steve Levenson - Stifel Nicolaus
Okay, thank you. I'm sorry you went by a little fast for me. You mentioned some in transit shipments. Could you give us the breakdown on that again please?
Ken Galaznik
Yeah, Steve that was -- that is the one specific, I've used the word in transit, which was the Parcel shipments that we've that was on the water. But the terms on that order were CIF and therefore we're not eligible for revenue recognition in the quarter. In addition to that, we've couple of Portal Systems that are actually on-site installed, waiting for the final customer acceptance, and because those are done at completed contract, we can't recognize the revenue on that until final acceptance has occurred.
Steve Levenson - Stifel Nicolaus
Okay. So, you haven't picked up the profit on those shipments yet?
Ken Galaznik
Correct. They are still in inventory, and so we get the effect of driving up the inventory balance and we did not get the revenue in that quarter.
Steve Levenson - Stifel Nicolaus
You also mentioned, I think that the inventory was up in anticipation of some orders. Did those come in?
Ken Galaznik
Yes.
Steve Levenson - Stifel Nicolaus
After the end of the quarter?
Ken Galaznik
Not yet.
Steve Levenson - Stifel Nicolaus
Okay. But these are -- is this built for spec, or this are built for something you actually pretty confident about?
Ken Galaznik
We're feeling good at this time. Our business as well, and it's never done until it's done. But with the comments, the increase, we've had in the pipeline, with the releases we're seeing from various agencies, we obviously felt confident enough to release the inventory on some of these exercises.
Steve Levenson - Stifel Nicolaus
Okay, thanks. Can you give us an update on what's going on with the Z Backscatter, the Military Trailer?
Ken Galaznik
Well, what I can say, Steve, is that it's still in testing. We're basically pleased of what we're hearing and, things are moving along well.
Steve Levenson - Stifel Nicolaus
Okay. I'll step side and maybe get back in the queue. Thank you.
Ken Galaznik
Thank you.
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