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iPod chipmaker plans stock offering
Santa Clara, Calif.-based PortalPlayer filed registration papers last week with the Securities and Exchange Commission, the first step toward an initial public offering. The company said it hoped to raise as much as $75 million. PortalPlayer did not say how many shares it expects to sell in the offering.
One of the challenges for the company in going public is that its fortunes are tied so closely to Apple Computer's popular iPod digital music player. Although PortalPlayer's software and chips go in players from companies such as Aiwa, Philips, Rio and Samsung, the overwhelming majority of its business comes from the iPod, with roughly 85 percent of last year's sales stemming from the iPod. In the filing, PortalPlayer said it is actively trying to diversify its business.