The idea worked and the Nucleus Reference and Solo models quickly ramped up to around 35-50 thousand dollars per month in sales. Two things happened at that time. One is that we made another move, to an empty garage in the neighbourhood that had 5000 square feet of floor space and some offices (there are still tire tracks leading up to the wall of the production and sound rooms we built in there). The other is that we met Don Fried, our financial backer and third partner. Don took the reigns as CEO and began giving us the guidance we needed to become a real consumer electronics manufacturing concern.
It was not all rosy however as the high end industry basically began to collapse. Home Cinema became the new buzz word and the dealers did not want to hear about another high end speaker that cost 2,500 or 4,000 dollars per pair (especially a big round one). We saw the change coming and continued to service the audiophile community. Hobbyists worldwide sought out the Nucleus Solo and Reference with passion. We also happened upon some variously sized spheres from one of our vendors and decided to investigate an ultra-compact home theater system. It made sense to us to use all the tricks which we'd learned while pioneering our spherical technology, most notably the ability to get high output from small cabinets with no coloration. We came up with some prototypes and called Don in to New York to discuss strategy. He took one look at the Micro prototype and said "we are sitting on a fortune". Shortly thereafter the decision was made to halt everything and focus all of our energy and resources on the Micro. We always knew we could bring back the expensive gear later. This new focus also fulfilled Anthony's lifelong goal of a high end speaker that everyone could afford while I was happy to be making a speaker my friends could finally afford. As the Micro began to take off, we opened up the facility in Los Angeles. This gave us the ability to do research in Brooklyn and ship to East Coast customers from there. At the same time, we could take advantage of the good weather, inexpensive warehousing and extensive manufacturing base on the West Coast. In 1999, the Nucleus Micro was launched to great critical and commercial acclaim. It was joined joined by our micro flagship Dué in 2002 and then by the 5" A'Diva in early 2003.
Anthony Gallo Acoustics products are now sold in over 40 countries worldwide. |