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Xperinet Closes Media Server Business

Developer of MIRV line of movie servers and clients, Xperinet plans to file for bankruptcy; contract manufacturer offers big discounts on inventory.


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Contract manufacturer Future Information Technology has about 30 Xperinet servers and 70 clients in inventory (all burned-in and ready to go). The company is selling them for more than 50-percent off.

Xperinet has gone out of business. The maker of movie servers informed dealers today that the company's board of directors "has voted to discontinue operations effective immediately, pending filing of bankruptcy proceedings." (Read the entire letter.)

Company CEO John Cox had warned reps on August 1 that Xperinet "is presently undertaking a significant restructuring due to weakness in the US economy. Slow US sales have placed considerable pressure on the company, and we are having to retrench, and focus on engineering before we can resume sales and marketing efforts. …" (Read the entire letter.)

Just today, Xperinet announced it was shuttering operations for good "unless the company is able to secure a further investment of $400,000 or find a buyer in the next few days…."

According to Cox's letter to dealers:

This decision was driven largely by certain economic factors resulting from the downturn in the US housing market. Reduced investment in housing resulted in a marked reduction in revenues for Xperinet, as with many CEDIA manufacturers. Secondly, the soft market caused numerous dealers to default on their credit terms, dramatically increasing our bad debt experience. These events came on the heels of a major development effort that drained the company of cash.

What Went Wrong?


Xperinet was one of the earlier providers of movie servers, starting in 2005.

Its Linux-based MIRV servers start with an enterprise-class RAID drive with hot-swap drive bays and 1.2 TB to 4.5 TB of storage (expandable).

Client devices distribute the content to remote locations throughout the home.

The thing that seems to have hampered Xperinet is the software. One of the company's most promising new extender products, Tarpon, failed to ship because the software never was completed.

"We have about 100 Tarpons on the shelf," says Marc Wishnow, VP of Future Information Technology (FIT) Inc., which has manufactured Xperinet product since fall of 2006. "Xperinet also has about 100 Tarpons."

He says that Tarpon was "about half the size of a piece of paper, and maybe one-inch high. Everything was integrated on one board. It was a great concept but it never came to fruition. Here we are eight months later and it still has no software."

Xperinet also never got its Blu-ray product to work properly. The company announced support of the format in August, 2007.

According to Hugh Hart of mid-Atlantic rep firm AVR Marketing, Xperinet initially tried to incorporate Blu-ray into its Linux servers. Unfortunately, he says, "it took incredibly long to verify the code, so they decided to get out of Linux and moved to the Windows platform just for the Blu-ray burner."

As a stop-gap measure, Xperinet started offering in April 2008 servers pre-loaded with Blu-ray content.

The idea was nice, says Hart, "but our dealers said, 'What if you want to put your own Blu-rays on it?'"





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Article Topics

News · Legal · Media Center · Media Servers · Legal · Media Server · Media Center · All topics

About the Author

Julie Jacobson, Co-Founder, EH Publishing / Editor-at-large, CE Pro
Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. She's a washed-up Ultimate Frisbee player currently residing in Carlsbad, Calif. Follow her on Twitter @juliejacobson.

6 Comments (displayed in order by date/time)

Posted by Bill Leaton  on  09/06  at  03:30 PM

We are one those Xperinet casualties.  We knew that they were having troubles, but not this extent.  The equipment manufacture has been help full, but limited when it comes to the software side.  Has any one been able to find someone for software assistance.  If they have, we would like them to make themselves known.
HELP

Posted by Steve Brown | Jesse Benedict  on  09/02  at  07:33 AM

We are supporting the software and hardware for Xperinet. Future IT “the manufacturer” will recommend you to us if you as. Please feel free to contact us at anytime.

Posted by Dave (Former Xperinet tech rep)  on  10/14  at  06:01 AM

I jumped ship before this happened, as it had been a long time coming.

President/Founder/CEO John Cox basically is a person of poor moral quality, and was always able to be bailed out by his father whenever he had any issues.  Once his father passed away, I knew that Xperinet would be soon to follow.

I do however feel bad for VP’s John Jamieson and Marian Trnkus, as they both were able to basically be swindeled by JTC.  Both had signifigant investments in the company.

Posted by Michel  on  10/19  at  06:11 AM

how can i contact steve brown and jesse benedict. question

Posted by Michel  on  10/19  at  06:19 AM

And plz is there any documentation about the experinet MIRV
software repair…. ..

Posted by Robert M. Jaffe  on  03/10  at  04:01 PM

Could either Steve Brown or Jesse Benedict please contact me? I have an Xperinet system with some problems. All of a sudden the company that sold it to me and installed it told me that Xperinet is out of business. They made 9 service calls since the beginning of December before they told me this. Needless to say I am frustrated and have lost faith.
Thank You

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