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Friday, Jun 27, 2003

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Ittiam to raise second round of funding this year

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ITTIAM Systems and DivXNetworks, the US-based video technology company, have entered into a revenue-sharing partnership where they will deliver solutions to original equipment manufacturers for digital still cameras and camcorders by year-end.

According to Mr Srini Rajam, MD, Ittiam will be built on TI's DM270 platform and will be available on other platforms based on applications and market demand.

The solutions, which will be DivX vertified, are in great demand and will be used on portable video products such as digital still/video cameras, video players and set top boxes, according to Mr Rajam.

This will bring DVD-quality video, available on televisions and PCs (through DiVX technology) to portable handhelds - a much sought after application and feature on most handheld products, according to Rajam.

The product will be released by July/August and the solution being licensed to OEM customers will bring in revenues that would be shared between DivX and Ittiam, he said.

DivX is a high quality low bit rate video technology that is gaining popularity worldwide, with the PC being the dominant platform.

This partnership with Ittiam will bring the technology to consumer appliances.

The DivX technology offers 7-10 times more compression than MPEG-2 technology and is comparable to MPEG-4 while also offering more features.

It has about 85 million users worldwide.

Ittiam Systems plans to raise its second round of venture funding during the year and indicated that $5 million might be raised from fresh investors.

The company had raised $5 million in first round funding in Q1 2001 from Global Technology Ventures, is a Bangalore-based venture capitalist.

Exit for the first investor will be through the IPO route - probably in 2006-07, said Mr Rajam, adding that the company had not firmed up on the quantum of second round funding.

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