Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Ralph Schackart with William Blair.
Ralph Schackart – William Blair
A couple of questions, if I could -- first, just sort of high level, I know you addressed about the one-time on the call, can you give us a sense in a normal quarter on a normalized basis what the royalty recovery would be? I’m just trying to figure out what is in the course of regular business and obviously this quarter was a little bit outside in terms of [the return].
Kevin Yeaman
Ralph, as you know, in any given quarter there are things that come through in that quarter and that’s true of this quarter as well. The $22 million is an approximation of the royalties over and above what’s normal. There are three specific items which really stood out.
Ralph Schackart – William Blair
Okay, so that’s above and beyond -- gotcha. And then Kevin, you addressed it on the call and there’s obviously been some speculation on the attach rate of ISVs as you transition to Windows 7. Can you sort of give us an update what you see in terms of the roll off on the ISB and the transition to Win 7? Do you expect there to be material changes?
Kevin Yeaman
Well, we haven’t seen anything specifically yet. As you know, when we first were included on Vista Home Premium and Ultimate, we found that OEMs still found it valuable to include ISVs and to differentiate their multimedia experience.
It’s natural that now that we are entering a new operating system cycle, companies are going to sit down and evaluate what the right footprint for them is. We expect some of them will make changes and some of them won’t. It’s really too early for us to predict. What we can say is that we are very pleased that we are in a position where we are going to be on so many versions of the world’s leading operating system. We think we are in a really good position.
Ralph Schackart – William Blair
Great -- one more and I’ll turn it over; on the SG&A line item, roughly two quarters in a row, you’ve sort of been trending around $50 million. I know there’s some seasonality in Q4 but is that sort of a good new baseline for modeling purposes going forward? Is that sort of the right range of estimate for us?
- To read the full transcript on Seeking Alpha, click here »
