IntelliNet to end OEM operations following acquisition

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Monday, April 1, 2002

NEWMARKET, N.H.-A month after being bought by audio and video manufacturer Russound, home and commercial control systems maker IntelliNet Controls announced plans to end its OEM operations.

"The decision was made not to OEM because you can only spread yourself so thin," explained Sergio Batista, director of market and product planning for Russound.

Instead, IntelliNet intends to turn its attentions internally because the company's products were undercapitalized. Batista said IntelliNet will end its OEM work in June.

"What we're doing right now is relaunching it and really focusing on going out there with a strong sales force and marketing effort," said Batista.

Since buying IntelliNet at the end of December, Russound has moved IntelliNet's operations from Naples, Fla. to its headquarters here.

About a handful of employees were retained, mostly on the product development side.

Though Russound now owns In-telliNet, it is still being operated as a separate company.

Batista said IntelliNet dealers expressed concerns about the purchase, but assured them that products will continue to be sold through a select network of dealers.