This on the Hydra Head site:

Boston, MA experimental metal ensemble Kayo Dot have recently inked a deal with Hydra Head Records for the release of their next album. The group plans to enter the studio in early summer and the album should be out in late 2007 or early 2008.

Additionally, guitarist Greg Massi has parted ways amicably with the group to focus on his own music.

Sweetness. I was pretty worried they were going to split completely after loads of the musicians left a few weeks ago. Everything they've released has been incredible. UK tour maybe?