Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Todd Mitchell – Kaufman Brothers.
Todd Mitchell – Kaufman Brothers
I was wondering if you could flush out some more information on the recent announcement with BSkyB. What does it exactly mean in terms of the licensing and the exploring the process to go to 3.0 and is there a revenue gain or revenue loss opportunity in future deployments there?
Ben Bennett
As you well know, we’ve been working closely with BSkyB over the last 12 months or so around promoting and marketing our Core 3 product. It’s an important milestone for us. This is a customer as you know we’ve been in bed with for 10 years or so, so that technology needs refreshing and this proof of concept is an important first point.
BSkyB announced a few years back the creation of their Darwin program and that has been quite significantly delayed, so the proof of concept is ongoing. It’s between our teams both in Mountainview and London and culminates as a first milestone early next year.
I can’t comment on the deployment opportunities. I think that’s just too early, but we are working with them on that.
On the IP licensing, as you well know we have quite a strong IP portfolio I’ve been keen to leverage for the benefit of our customers worldwide and certainly we’re in the company as big as BSkyB validates that intellectual property. It’s an important step.
I can’t actually comment on the value of the licensing terms. All I will say is we’re pretty pleased with the outcome on that front. I’m sure we can comment on future revenues on BSkyB. We can probably get into that when we actually give guidance, but I think it’s an important milestone in the relationship with BSkyB because there’s been some uncertainty around that customer for quite some time.
Todd Mitchell – Kaufman Brothers
Is the IP licensing, would it be incremental to a deployment revenue? I think if you have a customer that’s using your products you would want to, that would be included in the price of the products.
Mark Beariault
The deal of course is apart from our normal product license, meaning the Middleware that we ship to BSkyB we will gain a royalty revenue as we would normally do so. Of course if we’re successful with the proof of concepts on Core 3, there would be a separate royalty license, separate and apart from the IP license fee.
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