Question-and-Answer Session
Operator
Ladies and gentlemen (Operator Instruction) and the first question comes from the line of Brian Ruttenbur from Morgan Keegan. Please proceed.
Brian Ruttenbur – Morgan Keegan
Okay, thank you very much. A couple of quick questions, first of all, on gross margins, is this a sustainable level of 47% or was it this unreasonably high, expected for their rest of the year just because of mix of business.
Unidentified Company Representative
Brian I would say here we comment on the low volumes we had in parcel and in contract R&D so, that we can successful and having those return to what we like to them to be that would defeat the 47% margin which I would declare to be success story.
Brian Ruttenbur – Morgan Keegan
Okay, the revenues where very, very quick I didn’t get a mark and you give us the breakdown of revenues again, if you don’t mind.
Unidentified Company Representative
I got a slow down.
Brian Ruttenbur – Morgan Keegan
Yeah, having this, I feel like you have an auction I'm riding as fast as I can.
Unidentified Company Representative
Cargo, it’s 12,825,000. Z Backscatter Systems19,259,000, fuel service 21,713,000, parcel 395,000, contract R&D 500,000.
Brian Ruttenbur – Morgan Keegan
Perfect. Okay and then you expect parcel to pick up to more like the 2 to $3 million level going forward per quarter..
Unidentified Company Representative
With the activity we are seeing in the pipeline and with the expansion of the product line we are expecting see the increase yes.
Brian Ruttenbur – Morgan Keegan & Co.
And would you expect the contract R&D to pick up to more historical levels up to $2 million to $3 million.
Unidentified Company Representative
Brian replacing the cost program, yeah that would be pretty aggressive if you will. So, hope we kept to wait and see that one turns up.
Brian Ruttenbur – Morgan Keegan & Co.
Okay. And then the military trailer shipments, how many we are actually ship that you say seven in the quarter?
Unidentified Company Representative
No, ten.
Brian Ruttenbur – Morgan Keegan & Co.
Ten. Ten we are shipped in the quarter so, how many does that leave on the mil trailer contract.
Unidentified Company Representative
We – I think it’s 24 less Brain.
Unidentified Company Representative
One year, 34 minus 10 Brain.
Brian Ruttenbur – Morgan Keegan & Co.
Okay perfect. I just forgotten the total number not that I can do simple math. On the 24 Billy could be are you there, I couldn’t do simple math. Anyway on the 24, do you anticipate shipping notes by yearend next quarter, what are the requirements for that.
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