8-K filed today
I am having trouble understanding the wording of this SEC filing. The part about "deployment thresholds" is wierd. My concern is that they are moving the date out five years into the future wherein Comcast would have to deliver a threshold number of users to have the renewal option to the contract. I just don't get it. Anyone figure this out?
ITEM 1.01. Entry into a Material Definitive Agreement.
On August 27, 2007, we entered into a Statement of Work for an additional investment by Comcast to fund engineering work for the development of additional releases of the TiVo-branded, TiVo-service enabling software for Comcast DVR platforms and to enable such software on other Comcast DVR platforms, including Scientific Atlanta DVRs.
We also concurrently entered into the Fourth Amendment to the Licensing and Marketing Agreement with Comcast STB Software DVR, LLC and Comcast Corporation. The amendment provides for a modification to the amount and timing of fees for the initial development and certain future development of, and maintenance and support related to, the TiVo-branded, TiVo service-enabling software solution for Comcast’s DVR platforms. We also modified our agreement with respect to eight additional one-year renewal terms beyond the initial term expiring June 30, 2014, which are exercisable at Comcast’s option, moving the requisite deployment thresholds from June 30, 2014 to the renewal term beginning after June 30, 2019.
The foregoing description of our Fourth Amendment to the Licensing and Marketing Agreement with Comcast STB Software DVR, LLC and Comcast Corporation is qualified in its entirety by reference to the provisions of the amendment to be filed with our Quarterly Report on Form 10-Q for the quarter ending July 31, 2007.