PortalPlayer becomes Pinexe

HYDERABAD JUNE 26. PortalPlayer (India) is now `Pinexe.' It has taken a new name and a new business model, in the process shedding its status of a wholly owned subsidiary of Portal Player Inc.

The announcement to this effect was made by J. A. Chowdary, President and CEO of Pinexe, (earlier President of Portalplayer India), at a joint press conference with Gary Johnson, President and CEO, and Sanjeev Kumar, COO, respectively of Portalplayer Inc, here on Wednesday. However, PortalPlayer Inc will still continue to be a stakeholder in Pinexe. Valuations and financials are still being worked out, as $5 million has been invested in the Indian outfit so far. In the long term, Pinexe's equity will be distributed between employees, PortalPlayer Inc, and one or two angel investors.

Discussions are also on with angel investors, even though Mr. Chowdary said there was no immediate fund requirement. However, the new model of `Offshore Development Centres (ODCs),' being adopted by Pinexe will require some infusion of funds.

Described as a `win-win situation' for both, the advantage for Pinexe would be that it not only continues to have PortalPlayer Inc as an investor and get business as usual, it would even have direct access to PortalPlayer Inc's clients in the Asia Pacific region, Mr. Chowdary said.

In fact, PortalPlayer Inc will be the first company to be served through the new ODC model. Pinexe expects to finalise two additional ODCs with technology focussed companies in the near future.

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