Question-and-Answer Session
Operator
Thank you sir. (Operator Instructions) Your first question comes from Brian Freed - Morgan, Keegan & Company, Inc.
Brian Freed - Morgan, Keegan & Company, Inc.
Real quick, on the EMC prepaid royalty can you comment a little bit on the terms and kind of recognition of that? And do you have to repay any of that royalty if, for example, they decided to discontinue shipping your product early in lieu of a Data Domain based one?
Jon W. Gacek
Sure. They can use. There’s no terms. It shows up, you know, it came in as cash and deferred revenue for us and we’ll recognize it over the course of probably the next year. And it can be used for software, it can be used for hardware.
I don’t expect to pay any back. No.
Brian Freed - Morgan, Keegan & Company, Inc.
Can it also be used for tape systems if?
Jon W. Gacek
Yes. That’s what I meant by hardware.
Brian Freed - Morgan, Keegan & Company, Inc.
And the second question I had is as you look at the opportunities in the deduplication space, there’s been a lot of question whether EMC has any sort of, you know, limiting factors in terms of what you can do and can’t do under your OEM. Is there anything that precludes you from signing other OEMs besides EMC?
Jon W. Gacek
No.
Brian Freed - Morgan, Keegan & Company, Inc.
And then lastly do you have any sort of, you know, sense in terms of the shift, in terms of the new software that you brought on a quarter or so ago? Have you pretty much switched everything over from a DS standpoint and you’re running on the latest code update?
Jon W. Gacek
We have, we did a release in the late spring. We’ll have another release out shortly and you know we’re going to continue to have a release pattern of about twice per year. That, the current code base has been very, very stable. This next code release is really about increasing performance in replication in particular and it’s been very well received by us and by the EMC team as they’ve tested it. So that will be out shortly.
Brian Freed - Morgan, Keegan & Company, Inc.
And in terms of the key pieces of your latest code releases, I know one of the early issues was the kind of symmetry between the [right] and the restore. It sounds like the spring launch pretty much evened that up. Is that correct?
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