Oliver,
This is exactly how it works. Basically, it will send the signal from the neck pickup to one amp/cabinet, and the other to another amp/cabinet. I have, in the past, used a stereo set up with my Rickenbackers, and it gives you some interesting possibilities as you can better control the tone and cabinets you use for each pickup.
In real terms, this means you can have just your neck pickup go to, say, an Ampeg SVT and a 2X15 cabinet, while your bridge pickup can go to a different amp with a 4X10 speaker cabinet. What I've found is that you can really separate the highs (bridge pickup) and lows (neck pickup), and get a great mix between the two. Of course, if you use one or the other, but not both pickups at the same time, you'll defeat the purpose of a stereo set up quite a bit. You can always use the pan pot, however, to roll in more or less bridge/neck pickup as needed.
Hope this helps,
Alan