I called ATI today after receiving a letter to THeta dealers and a press release. The ATI people said nothing has changed at Theta except for the ownership and an infusion of capital and other resources. Warranties would of course be honored and new products were being developed and would be forthcoming. I didn't even have to say I was a friend of Steve B's to get this information.

Not my place to post it. I think I can be trusted as to info I report. The material made no mention of warantees. That's why I called. The letter mentioned the key people who were staying on and all the key people are staying. The letter is to dealers and the essence was business as usual, no changes other than who owned the company. ATI is a good company and they almost should be considered a non equity partner of many high end electronics companies. I was at an open house of a high end company in Boulder during CEDIA and the President of ATI was there proudly showing us ATI's role in product development, engineering, and production. ATI had no ownership in that company. THE ATI purchase of Theta will indeed make Theta better. That's my take.

Mark got the above info because ATI sent out a very brief press release with a short cover letter to its dealers, and Mark dba Soundworks in Maryland as a Theta dealer, as well as Craig Shumer known as VGI on the forum dba Theatermax in New Jersey, and all other Theta Digital dealers, received this info.

But I can give you the real scoop!!!@@ And I think its great news for Theta luvers!!!@@@

I am doing this in a brand new thread so as to eliminate speculation and make it easy for folks to understand the new Theta Digital without having to read through many pages of speculation with only a little substance on that other thread.


I received a phone call from Mike Pontelle of ATI today. David Reich at Theta asked him to call me so I could relay info to forum members and the world.
In a nutshell here's what he told me (though I may ad lib with a few words of my own to explain this):

1. ATI acquired Theta's assets and its intellectual property, which is common in these types of transactions. ATI historically was an amplifier company, both its own and manufacturing amplifiers for companies including
Crestron, JBLK Synthesis and more recently even Lexicon. ATI has had a number of acquisitions over the years, with Theta Digital being its latest.

2. Nothing has changed at Theta except for the ownership and an infusion of capital and other resources (like Mark Haflich noted above.) To expand on this - (as Neil Sinclair had told me, ATI signed a new lease on the Theta Digital facilities, which are about forty miles from ATI's facilities); Theta has retained its employees and especially key employees like Dave Reich, Naomi, etc., etc.; Naomi continues her role as "THE LISTENER", meaning that Theta products go through her to ensure that they sound great; Theta's philosophy remains unchanged - meaning great sound; and all existing warranties are honored. Mike emphasized the importance of the infusion of capital that ATI has made into Theta.

3. Technically, Theta Digital is now simply a division of ATI - or ATI dba Theta Digital. Theta is not being folded into ATI, but remains its own company, or more accurately its own operational division. As do all ATI
companies, ultimately they are under the umbrella of ATI and its long time President Morris Kessler. But ATI acquired Theta to do what Theta knows best which is great sound in a capitalistic manner.

4. The Virtu and Powerdac combo (surround processor & digital multi-channel amp to be priced very competitively) product line is about 85-90% done, with Dave Reich at the design helm and of course Naomi doing her listening gig.

5. What about the Casablanca 3? And HDMI for multi-channel audio for HD DVD and Blue Ray? And HDMI switching for video? And HDMI scaling for video?
Mike said ATI dba Theta is doing a "full court press" (actual court) and that
they are putting all resources into this so that the new Casablanca (or its successor or whatever its called) will be ready in ONE YEAR!!!@@@ Mike emphasized the complexity of this project as the internals of the Casablanca must be reworked to accomodate HDMI and go from there. The CB3 is not being abandoned but being updated!!! Momentum Data Systems, well know for AV software, will be contracted to do the new CB software. Mike admitted they still have a lot of work to do, and they are considering perhaps having a few separate boxes so a customer only buys what the customer requires. So admittedly the new Theta is just getting started on this endeavor but ATI intends to commit the resources to make it roll to completion within one year.

(I wish the new Theta the very best in getting the new CB with HDMI ready within one year. Good intent, but even putting lotsa money and effort into it
will it be ready? That remains to be seen. But certainly, the infusion of cash and dedication to doing the CB revision will make this occur much faster than it would have otherwise under the new ATI ownership.)

6. Will Theta Digital have an upgrade/trade-in price on the new CB for existingt CB customers? Mike very honestly stated that this isn't decided yet, that their First Priority, after ATI acquired Theta Digital, is to upgrade the CB with HDMI, etc. ATI dba Theta Digital will determine the feasibility of upgrade or trade-in for existing CB owners later on in the process. However,
they are certainly aware that existing CB owners want an upgrade/trade-in path and he promised they will look at this very, very carefully to see what they can do.

I think overall the above is great news for Theta luvers! The only bad news is that the new Theta Digital won't be giving me or other existing CB owners the new CB & HDMI upgrade for the sort of "cheap" upgrade costs we've had in the past. Mike didn't say that, either - just that he acknowledged what I'd been told, previously, that HDMI for multi-channel audio will require substantial redesign of the CB's internals and obviously that substantially raises manufacturing costs if an upgrade or trade-in is to be made available.
But the odds have at least increased reasonably that hopefully as an existing CB3 owner and long time Theta luver that we CB owners will be offered some sort of preferential upgrade/trade-in pricing when the time comes. But that's my educated guess, not what Mike said.

____________________________________________

Edited on 11-16-07 to ad the press release:
____________________________________________

Ati Acquires Theta Digital

--------------------------------------------------------------------------------

ATI ACQUIRES THETA DIGITAL

Los Angeles, November 9, 2007—The widely acclaimed audio component manufacturer, Amplifier Technologies, Incorporated [ATI], has acquired Theta Digital of Agoura Hills, CA. Theta Digital is one of the most prestigious names in high-end audio and home theater.

This acquisition will position ATI to provide products that define the utmost audio/video experience. Long known for its innovative styling and dedication to sonic purity, Theta Digital’s legacy of unswerving devotion to quality and detail will be further enhanced by ATI’s legendary reputation.

“We have long admired Theta for its stature in the industry and we look forward to providing Theta with ATI’s extensive resources. Our goal is to strengthen Theta’s continuing commitment to providing state-of-the-art products,” stated Morris Kessler, ATI’s president.

Theta Digital designs and manufactures an award-winning array of products including the Casablanca Music and Cinema Controller, and the flagship Dreadnaught power amplifier. These components have appeared in many upscale home theater installations as well as in the reference systems of audio industry reviewers. Theta’s tagline, “Digital and Analog Done Right” personifies the company’s mission.

“Theta’s acquisition by ATI provides us with enhanced engineering and financial strength that will enable Theta to develop new, innovative products. Theta is committed to the high-end market which we have helped define for the last 20 years,” said Dave Reich, Theta’s General Manager.

Those are the thickest rose colored glasses I've ever seen.

Art

Thank you Counsel for the update.

Now i am glad i went two channel audio with the Gen 8 and kept the component connect on the video.

It seems to me the best way to go here for Theta would be a video based hdmi switcher box like your six shooter on the audio side.

This would limit costs as to major physical and/or labor required to internally upgrade the CB3 and you dont have to send it in for 6 weeks like the Halcro crew.

Looking rosy to me Art. My biggest concern was Thetas independance and that looks like it is preserved.

Paul

Art. I've seen thicker. In fact I might need thick suglasses to watch my C3x 1080 on my 110D 1,3 Studeotech. I'll be throwing at 2.0 or so with the T1 so that will decrease the high foot lamberts and increase the contrast. But I'll be pushing 30 ft lamberts in any event.

Steve. You are welcome. Sorry to beat you to the puinch. But your info is totally accurate from what I know.

Mark:

How are you throwing 2.0 with the T1 which is 1.3-1.7, BTW my Swissy tipped the 100lb mark.

You are right. I was looking at the T1 throw range on the HT380 which is 1.5 to 2.0. I'll throw it at 1.7 which will place my throw at 13 ft, 7 inches. That's almost exactly the throw on my CRT. Thanks for the catch.

My female Swissy will be two December 5. She just pushes 100 lbs. You have a boy. Right? At one year or so they push over 100. My girl might top at 115. Your's will get to 140 or so.

A Swissy is a Greater Swiss Mountain Dog.

8 Months old and over 100lbs, very large puppy boy, glad I could help, I think there will be quite a few of us AVS CX31080 owners come December

You are right. I was looking at the T1 throw range on the HT380 which is 1.5 to 2.0. I'll throw it at 1.7 which will place my throw at 13 ft, 7 inches. That's almost exactly the throw on my CRT. Thanks for the catch.

My female Swissy will be two December 5. She just pushes 100 lbs. You have a boy. Right? At one year or so they push over 100. My girl might top at 115. Your's will get to 140 or so.

A Swissy is a Greater Swiss Mountain Dog.

The 100 lb one is a Dreadnaught of a dog. The 140 one is a Dreadnaught 2.
If you have kids they better have phasers ready on Stun!

I forgot to ask whether Theta will consider new product names in the Star Trek tradition as in the past!!!@@

I actually asked them that but am witholding the info until later so I will have something of substance to post in one of your threads. Generally, Swissy's are very gentle. My girl is very beta. She just wants to be a member of the pack, loves everone, and wants everone to love her. LJG dog's and mine came have a breeder in common although they came from different kennels in different states. I think LJG was very happy for my referral.

Man it gets so easy to get off topic in a Steve B thread.

Steve I hope they are right.

Infusion of capitol means many things. Return on investment means another.

Too many of these small companies struggle to survive.

I hope a year from now those rose colored eyeglass still can be used.

Good Luck ATI

Yes Mark owe you one for the referral, Big fella wouldn't hurt a fly, I can pull and grab his tail, ears etc., loves to be around the familly, only down fall is when the big fella gets playfull and try's herding everyone around the house. Heavy obedience training is a must.

Yes Mark owe you one for the referral, Big fella wouldn't hurt a fly, I can pull and grab his tail, ears etc., loves to be around the familly, only down fall is when the big fella gets playfull and try's herding everyone around the house. Heavy obedience training is a must.

In real life Mark is very good at obedience training. Ask his dog, and the dog will bark "WUS WUS" (closest it comes to "YES"). Ask his first wife, and she'll bark "No". After Mark divorced the first wife he put lotsa effort into learning how to teach obedience.

Steve I hope they are right.

Infusion of capitol means many things. Return on investment means another.

Too many of these small companies struggle to survive.

I hope a year from now those rose colored eyeglass still can be used.

Good Luck ATI

THe rose colored glasses are simply more rosy than before the acquisition.
I am simply reporting my conversation. Hopefully the good intent that Mike communicated, as well as ATI dba Theta Digital's excellent early actions
(keeping key and other personnel, new lease, infuison of cash), will continue
to improve Theta's position amoung the high buck home theater crowd and home theater audiophilists. We will see in time.

Meanwhile, I hope Mark will quit trying to turn this into a "dog" of a thread, like his first wife. HA!

In real life Mark is very good at obedience training. Ask his dog, and the dog will bark "WUS WUS" (closest it comes to "YES"). Ask his first wife, and she'll bark "No". After Mark divorced the first wife he put lotsa effort into learning how to teach obedience.

This my style. My old dog, Mugsy's Got Balls, real name:), Mugsy for short. 38 inch chest, 28 inches tall at the shoulders, and a 125 pounds of "loving care." Rare breed, 100% Johnson American Bulldog, Very few of these in the country. You can leave home knowing you have excellent, "home owner's insurance." I had him trained in German to do some very "sweet things," :D. Here's a site for them, www.americanbulldogs.net. Isn't that Hugo, just oh so cute:D.

A four year old girl here in Scottsdale last week was mauled and killed by the family's adopted Bulldog, 100 pounds. I guess the lawyer in me is a bit more cautious than you guys.

A four year old girl here in Scottsdale last week was mauled and killed by the family's adopted Bulldog, 100 pounds. I guess the lawyer in me is a bit more cautious than you guys.

Man you are a wuss. First no Harley Davisons and now no bulldogs either:). Large adult dogs of aggressive breed should never be adopted. That's was just insane. Besides, at 1000.00 a pup, I don't it was one of these, adopted. Breeders of this breed are very offended in you compare it to a Pit Bull which is most likely the dog involved in that attack. To my knowledge this breed has never been involved in any such attacks. This is NOT a Pitbull.

Those must be lapdogs, :D

My (sadly departed) Great Dane Shaq was 40 to the shoulder, had a 30 inch neck, and weighed 245. He was a great dog, I used to walk him with his show lead (basically a 2' string). It was funny when I'd walk him with his spiked collar on, people on the sidewalk would part like the Red Sea.

Dan

Man you are a wuss. First no Harley Davisons and now no bulldogs either:). Large adult dogs of aggressive breed should never be adopted. That's was just insane. Besides, at 1000.00 a pup, I don't it was one of these, adopted. Breeders of this breed are very offended in you compare it to a Pit Bull which is most likely the dog involved in that attack. To my knowledge this breed has never been involved in any such attacks. This is NOT a Pitbull.

Its been all over the news that it was a bulldog (sorry, Bulldogger). 100 lbs. Playing in backyard while parents at work, nanny watching 4 year old daughter. Dog was adopted from local animal shelter, three animal behavioralists oked that dog was safe. Apparently someone else adopted and returned the dog, too. Police had to shoot and kill the dog but too late for the little girl. A real tragedy. Call me a wuss if you like, my Six Shooter can handle it.

Your Dwin is not a six shooter. it is 3 shooter BB gun!

I had to put down a Swissy who turned violent at age one. It wanted to be the alpha dog. I changed breeders to one who specialized in raising gentle swissies. I checked with a variety of owners who purchased from the breeder. My swiisy is a wuss. She wouldn't hurt a fly. she's almost two and her personality has been constant. A variety of AVSers have met her. I lucked out. She will lap sit on ocassion. Enough about my first wife Steve. Its been 31 years since I've seen her. I know she remarried, had a nice child, a successful career, we were just wrong for each other at the time. At the time, it hurt me a lot to fail at a marriage. Hopefully, I.ve done a lot better the second time around.

Its been all over the news that it was a bulldog (sorry, Bulldogger). 100 lbs. Playing in backyard while parents at work, nanny watching 4 year old daughter. Dog was adopted from local animal shelter, three animal behavioralists oked that dog was safe. Apparently someone else adopted and returned the dog, too. Police had to shoot and kill the dog but too late for the little girl. A real tragedy. Call me a wuss if you like, my Six Shooter can handle it.

This is tragic but it's also stupidity. Adult dogs of aggressive breeds should not be left alone with children that young especially adopted dogs. You can try swimming in the water with sharks too and then say that the "animal behaviorist" said that sharks dont' eat people and then blame the sharks for being sharks. In 2001, Mugsy stopped my home from being broken into with me at home asleep. You know what I do and I work at night. I heard the fence shaking as some one tried to scale it but was exhausted, in my first,"starter" home in New Orleans east, that I now rent. He had just come out of the neighbors home and burglarized it. He broke into EVERY home on the block except mine. I don't think that story would have gotten much press.The guy would park his car and then come in through the back window. He had the whole neighborhood scared. The most dangerous animal on the planet walks on two legs. My neighbor really hated to admit it as his philosophy was much like yours but did saying,"I know that your dog saved you from being broken into." True story. Enuff politics. Get the thread back on track. I never though it would turn into this kind of conservative vs liberal stuff.

This is tragic but it's also stupidity. Adult dogs of aggressive breeds should not be left alone with children that young especially adopted dogs.

Absolutely. I'm a bulldog when it comes to that sort of stupidity. How can an animal behavioralist say a 100 pound animal with sharp teeth is "safe" under all circumstances like young children?

I was ready for a Bayou home theater vacation but now the Bulldog has me scared of gettin' too close to his home theater lair.:D

TOUCHE!!! And of course you are so right.

To Bulldogger's credit, when he visited the other year and demod my theater, he didn't even mention his adverse experience with ambulance chasers.

Bulldogger and I have talked off the forum for years yet I didn't know he had bulldogs until today. I just thought folks thought he was a "bulldog" himself.
Shows what I know.

I just thought folks thought he was a "bulldog" himself.
Shows what I know.

No, that's what I was called, Bulldog, when I fought bare-knucked mixed martial arts back in the day. Back then I was told that I looked like my dog too. Not any more. I think I am built more like a Basset hound these days:D. My wife still laughs because all of my old friends that have not seen me for years call me that."That's a wild boy you got there," was what one said. My wife thinks that so funny because that's not the side she has seen. She's seen me break a few bricks with my fist but thinks that's funny too. The sale of American Bulldog pups financed much of the foundation of my system. Pups at 1k and Mugsy's loving ways with your female for 700.00 each time.

No, that's what I was called, Bulldog, when I fought bare-knucked mixed martial arts back in the day. Back then I was told that I looked like my dog too. Not any more. I think I am built more like a Basset hound these days:D. My wife still laughs because all of my old friends that have not seen me for years call me that."That's a wild boy you got there," was what one said. My wife thinks that so funny because that's not the side she has seen. She's seen me break a few bricks with my fist but thinks that's funny too. The sale of American Bulldog pups financed much of the foundation of my system. Pups at 1k and Mugsy's loving ways with your female for 700.00 each time.


Seriously, if you met or hung out with Bulldogger off the forum, you would find this Theta-McIntosh luver to just be a real good guy to hang out with.
The "Bulldog" is more a pretense, except any would be thief to his home or home theater can expect to leave with less than he came in with (some bites out at minimum from the real bulldoggs).

I think I am built more like a Basset hound these daysYour ears hang low? :)

Your butt hangs low? :)

Good thing you didn't post what you were thinking above!!!

Your ears hang low? :)

Stomach:D

Seriously, if you met or hung out with Bulldogger off the forum, you would find this Theta-McIntosh luver to just be a real good guy to hang out with.
The "Bulldog" is more a pretense, except any would be thief to his home or home theater can expect to leave with less than he came in with (some bites out at minimum from the real bulldoggs).

Oh, I am a pussy cat for sure in everyday life. Whenever I make it out that way again, take a close look at my right hand. I think you might find the calluses on the two big knuckels of my right hand a bit odd;). Ask me to make the palm muscle beneath my "pinky' finger of my hand flex too. That's really funny looking. Freaks the Mrs. out:D.

not to change the subject, but what is the difference between an American Bulldog and a Johnson American

My two sh*tdisturbers:

http://i134.photobucket.com/albums/q100/curtpalme/buddy1.jpg

http://i134.photobucket.com/albums/q100/curtpalme/HPIM1205.jpg

Ati Acquires Theta Digital

--------------------------------------------------------------------------------

ATI ACQUIRES THETA DIGITAL

Los Angeles, November 9, 2007—The widely acclaimed audio component manufacturer, Amplifier Technologies, Incorporated [ATI], has acquired Theta Digital of Agoura Hills, CA. Theta Digital is one of the most prestigious names in high-end audio and home theater.

This acquisition will position ATI to provide products that define the utmost audio/video experience. Long known for its innovative styling and dedication to sonic purity, Theta Digital’s legacy of unswerving devotion to quality and detail will be further enhanced by ATI’s legendary reputation.

“We have long admired Theta for its stature in the industry and we look forward to providing Theta with ATI’s extensive resources. Our goal is to strengthen Theta’s continuing commitment to providing state-of-the-art products,” stated Morris Kessler, ATI’s president.

Theta Digital designs and manufactures an award-winning array of products including the Casablanca Music and Cinema Controller, and the flagship Dreadnaught power amplifier. These components have appeared in many upscale home theater installations as well as in the reference systems of audio industry reviewers. Theta’s tagline, “Digital and Analog Done Right” personifies the company’s mission.

“Theta’s acquisition by ATI provides us with enhanced engineering and financial strength that will enable Theta to develop new, innovative products. Theta is committed to the high-end market which we have helped define for the last 20 years,” said Dave Reich, Theta’s General Manager.

My two sh*tdisturbers

Enjoy what ever time you have with them is all I can say. We just lost Floyd and it's amazing how difficult it's been for us to deal with.


94617

94618

not to change the subject, but what is the difference between an American Bulldog and a Johnson American

Two different bloodlines. 100% Johnson is what I have always bred. The Scott dogs,another line is usually a thinner and smaller dog. Johnson dog's are typically massive with extremely "heavy" bone structure. Imagine the common English bulldog that you always see in cartoons and commericals but at the size of a Rottweiler. It's not a dog that you would forget seeing and likely have never seen in "real" life. 100% Johnsons are VERY rare. If you saw one, you'd know it's not a bred that you had seen before. Scott dogs look more like Pitbulls and usually when someone see an American Bulldog that's what they see. 100% Johnson dogs originate from the guy who preserved the breed John Johnson. American Bulldogs are not used to fight . They are too big even if anyone wanted to do something ghastly like that. Mention that now before Steve pees his pants:p. The temperment of American Bulldogs, Johnson, is about like a Saint Benard's. Some are aggressive, but many show no aggression. It's a big dog that does not bark much. Will not bark at you if you walk past the yard. Mugsy would "roll" his eyes at you if walked toward the gate. If you went to enter he'd growl and start toward you. Mugsy would play with other dogs at the park and could be set loose to run with them. He also loved to play with children but would never be left alone with one because he was raised with me when I was a single. When the English immigrated to the Southern U.S, they brought their dogs with them. This is the true bulldog which gave the bred it's reputation for toughness. The little bow legged dog you see on TV was breed with the Pug, hence the cork screw tail, to be a "show dog" or oddity and pet. The original dogs were bred as farm dogs. Imagine that you were on a farm and had a bull. Often if the bull smells "cows," females, in season, he will break out if he can. Then of course like any horny male he does not want to be caught and taken "out of action":). The bulldog was bred to be able to catch the bull without harming him. No one wants their prized bull which they are using to improve their breeding stock damaged. Therefore the orginal bulldog was breed to have teeth that are under-shot, lower jaw protrudes as to not allow the teeth to form a near direct line like a scissor or "scissor bite". Becasue the teeth are under shot, the bulldog can grab hold to the bull without tearing flesh. Then the farmer or plantation owner would come up and rope the bull.


The orginal bulldog was as boring dog for those who liked blood sport. All it will do is grab hold and lock up. That's what it was breed to do, not cause damage. Makes for an extremely boring fight for the English genttlemen who loved such sports in the 1800's.Every seen a small dog that was ferocious? I mean aggressive, little ankle bitters? Well someone imagined that if you could put the "mind" of that dog into the body of the orginal bulldog? You'd have a real nasty fighter, the dog commonly known as the Pitbull terrier which is the orignal farm dog crossed with a mean lilte terrier. the Pitbull is bred with a "scissor bite," teeth that close directly in line which allows for flesh tearing. The original dog which now exist as the American Bulldog as the original English dog was breed out in English and only survived because English settlers took the dog to the U.S. with them in the 1700s and 1800s where they survived in small pockets in the South. It is the terrier part that was bred in that cause such aggression in the Pitbull. Think gentle American honeybee vs African Killer bee. That look similiar BUT. I would consider the Rottweiler to be a much more agressive dog than the typical American Bulldog. IN fact the ones I have owned were certainly far more aggressive. That does not mean that the American Bulldog is not a tough dog. It is but it was bred as a general purpose farm dog, guard dog, stock protector, all in one.


Remember, "Turner and Hooch," with Tom Hanks? That dog was a Bordeaux, forgive misspelling, same region as the wine. Another bred descended from the original bulldog. If they were white, they would be a pretty close match for a Johnson dog in looks and are in temperment.

Back to the subject of the thread: Before Theta went digital, they were of course analog. Here's an early Theta tube preamp for sale on Audiogon, with photos:

http://cls.audiogon.com/cgi-bin/cls.pl?preatube&1199992741

Back to the subject of the thread: Before Theta went digital, they were of course analog. Here's an early Theta tube preamp for sale on Audiogon, with photos:

http://cls.audiogon.com/cgi-bin/cls.pl?preatube&1199992741

On ebay now. 475.00 buy it now.

Back to the subject of the thread: Before Theta went digital, they were of course analog. Here's an early Theta tube preamp for sale on Audiogon, with photos:

http://cls.audiogon.com/cgi-bin/cls.pl?preatube&1199992741

Wow! And they even relocated from Clearwater, Fla.? Quite a move up going from analog to digital and from Fla. to California too.

Wow! And they even relocated from Clearwater, Fla.? Quite a move up going from analog to digital and from Fla. to California too.

Silicon Valley and software programmers are in California, not Florida. So when moving from analog to digital, moving to California made sense, wouldn't you say?

Here's an article from Stereophile on line re ATI's purchase of Theta Digital:


http://www.stereophile.com/news/111907theta/


ATI Buys Theta Digital
By Jason Victor Serinus


November 18, 2007 — Theta Digital, the "Digital Done Right" pioneer of separate DACs and transports, has been sold to Amplifier Technologies, Inc. ATI has pledged to immediately begin work on selected Theta audiophile and home-theater products.

"We have long admired Theta for its stature in the industry and we look forward to providing Theta with ATI's extensive resources," stated ATI president Morris Kessler in an announcement released November 15. "Our goal is to strengthen Theta's continuing commitment to providing state-of-the-art products."

Kessler, who owned the fabled SAE company in the 1960s and 1970s, has over 40 years' experience overseeing the design, engineering, and manufacturing of audio components. Currently, ATI produces up to 1000 OEM products a month for a host of well-known companies, as well as 23 of its own amplifier and three A/V processor models.

The sale is welcome news to frustrated Theta customers who have been wondering why the company has lagged so far behind. Theta has issued nothing new since January 2007, when it announced an upgrade to the Citadel monoblock power amplifier, and the Premium DAC card for the Casablanca III Music and Cinema Controller. The Theta Generation VIII DAC-preamp, acclaimed on its January 2003 release as one of the finest DACs on the market, has never been upgraded to decode high-resolution SACD data, or to accept a USB input. (Stereophile has not auditioned the Gen.VIII for so long that it has been dropped from our "Recommended Components" list.) Both the Carmen II DVD/CD transport (released August 15, 2002) and Compli multiformat DVD player (released September 2003) are no longer in production, leaving the pioneer of outboard DACs without a companion transport. The company that "shuns obsolescence" and assures customers that its products are "updateable and upgradeable" has, of late, come up short.

Theta's longtime general manager, Dave Reich, will remain with the company, and director of quality control Naomi Seeger will retain her position as Theta's golden ears. "Theta's acquisition by ATI provides us with enhanced engineering and financial strength that will enable Theta to develop new, innovative products," says Reich. "Theta is committed to the high-end market, which we have helped define for the last 20 years."

"We understand Theta's importance in the industry," longtime ATI spokesperson and Kessler associate Mike Pontelle told Stereophile. "We intend to honor the heritage of their products while bringing financial stability and increased resources to the company." While Theta's products will continue to be manufactured in the US, as are ATI's, and Theta's headquarters will remain in Agoura Hills, California, some elements of Theta's administration will shift to ATI's headquarters in Montebello, 40 miles away.

ATI has identified several critical issues that demand immediate attention. "Our first order of business is to focus on the Casablanca," says Pontelle. "We also expect to release the Virtu, a pure class-D digital amp (footnote 1) and the less costly Valis digital-to-analog processor, by the end of the second quarter. All [of] Theta's amplifiers are well accepted, up to date, and reliable, so we'll leave those alone for now. We will also honor all Theta warranties."



--------------------------------------------------------------------------------
Footnote 1: Theta first announced the Virtu at the CEDIA Expo in September 2005. The company's so-called PowerDAC was never released

sounds like they're already sending a soft signal that the CB as we know it , is over and a re-investment is probably inevitable for those that want to continue growing with Theta.