He knows that he was frozen in Mechanicsburg for some duration, so it's definitely sometime in the future relative to when he activated the time-stop device. I get the impression that he's pleased to see Othar, for some reason, and that it's that pleasure he finds strange given their history of conflict. It's possible that he's pleased to be confronting Othar under circumstances that might let him finally kill Othar, but that doesn't feel quite right.

If the side stories such as "Revenge of the Weasel Queen" are canonical, we know that Othar will survive these events.