Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Todd Koffman - Raymond James.
Todd Koffman - Raymond James
Can I just get a clarification on the; I think it was $9.2 million UltraLine Series3 deferral? Was that product that was physically shipped in the quarter for $9.2 million?
Bernie Sergesketter
Yes, it was. Go ahead, Amy.
Amy Forster
I’m sorry. Yes, that is correct. $9.2 million was shipped in the quarter.
Todd Koffman - Raymond James
And you’re waiting for what? Or what are the requirements that will ultimately allow you to recognize that revenue?
Amy Forster
The question is what are the requirements that will allow us to recognize that revenue? As I mentioned earlier Todd, there are some contractual obligations to provide some specific software enhancements to the product and although we’ve provided a product to our customer that fully has met their needs and expectations, because of this contractual requirement and the fact that we are not able or have not been able to establish fair value for those undelivered elements, we are required to defer that revenue.
Todd Koffman - Raymond James
So when you gave your guidance for the March quarter, it also did not include the recognition of that revenue. So, is it fair to assume that you don’t expect to get those software enhancements included in the product shipped during the March quarter?
Amy Forster
That is correct.
Bernie Sergesketter
We’re going to work to get that done, but we can’t guarantee that we’ll have it done, but yes, we’re going to work to get that work done before the end of the next quarter.
Todd Koffman - Raymond James
So, it begs the question then, are those products physically being deployed into customer locations for use or not yet?
Bernie Sergesketter
No, absolutely. They’ve been deployed and it’s very successful. The quality is outstanding; our customer is very, very pleased; the end-users are very pleased it’s going very well.
Todd Koffman - Raymond James
Then just one last question, do you expect to ship additional UltraLine Series3 product to that customer against that deployment in the March and June quarters, in addition to the $9.2 million worth of product?
Amy Forster
Correct Todd. As I indicated when I gave guidance, it did not include our anticipated shipments in the fourth quarter of that product in the range of $9 million to $11 million.
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