Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mike Olson - Piper Jaffray.
Mike Olson – Piper Jaffray
If the studios are going to be getting their libraries ready for Blu-ray, when do you think you are going to start to see an uptick in the Pro authoring systems? Is it in the June quarter or is it more in the September and December quarters? Do you have any thoughts on the potential total opportunity for the Pro business as we go through that cycle?
Dave Habiger
We are already starting to feel a slight impact. Obviously the trend is heading in the right direction and I think, as we mentioned in the call, the wide scale adoption of players by the market will be the next catalyst. And we are seeing that already take place.
Specifically we are starting to feel the effects already and obviously those will be amplified as we move into the Christmas holiday season. And certainly in the end of summer and fall when there are going to be clearly a lot of studios wanting to get titles out in time for the holidays.
Paul Norris
I wanted to add as I mentioned in the prepared remarks that we will probably see revenues increases on a gradual basis over time due to the new way that we are recognizing revenue on the Pro systems. In other words we are recognizing that over the term of the annual maintenance contract rather than at the time of the initial license sale.
Mike Olson – Piper Jaffray
One question about this stock option review, can you talk at all about when you expect to get the rest of everything filed?
Paul Norris
We are working very hard on it. We have gotten through the real hurdle here in terms of we have done the stock option restatement itself. Now all we have is to catch up on the three quarterly reports for our fiscal year 2008 and to hold our annual meetings for 2006 and 2007.
And we should be able to work through those pretty much as a matter of course, but it is going to take a number of weeks. Probably we are looking out a month or two before we are really fully caught up.
Mike Olson – Piper Jaffray
What you mentioned about recognizing the Pro revenue over the life of the contract, what is the typical period? Is that like a year-long revenue recognition period? Or what's the typical period for that?
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