PortalPlayer has announced the departure of company CEO Gary Johnson.

After three years with Apple's former long-term chip supplier, Johnson plans to leave at the end of the year. The company has begun searching for a new leader.

Johnson said: "My true passion is in leading companies through their initial rapid growth. When I joined PortalPlayer, the company had one product and very limited cash. Today, it has several design teams working on products for three major multimedia-player markets and nearly $200 million in cash."

He explains that he is leaving the company to look for other start-ups to work with. "I feel that it is time for me to pursue other opportunities where I can again be instrumental in the early stages of a company's growth."

The company revealed the news as it discussed its second quarter 2006 financial results. Finances were clearly impacted by Apple's decision to widen its supply chain. Net revenue for the second quarter of 2006 was $34.6 million, compared with $44.6 million in the second quarter of 2005, and $72.3 million in the first quarter of 2006.

The company expects third quarter revenue to be in the range of $32 million to $42 million.