This means that the 9th circuit will review the ruling (i.e. decide whether it should be reheard) in the case and it won't be headed to the Supreme Court at this time. If the majority of judges vote to hear it, there will be a new hearing before 11 of the judges (the en band panel).
My take is there may be enough votes for the reconsideration to be granted, but depending on which 11 get selected it will be tougher to change the ruling much.
The Mercury News says there may not be enough votes for rehearing. The next stop after that would be the US Supreme Court, though some (including myself) have called into question whether or not the Supremes would want to take this case for varying strategic reasons.