http://www.cepro.com/magazine/article/17554.html

Control systems manufacturer AMX had a busy fourth quarter of 2006, acquiring three companies in six weeks -- first Endeleo, which makes media-distribution products for commercial markets; then AutoPatch, manufacturer of signal switching and distribution gear for commercial/residential applications; and finally Matrix Audio Systems, a developer of multiroom audio systems specifically for the residential market.

It was clear when Duchossois acquired AMX in February 2005 that acquisitions were part of the strategy to achieve ambitious growth for the Richardson, Texas-based manufacturer.

For years, AMX has resisted the temptation to stray beyond its core competency of touchscreens and controllers, while its competitors, chiefly Crestron, expanded into such diverse areas as wireless thermostats, surround-sound processors, intercoms and A/V switching.

In the past, AMX had pooh-poohed the idea of straying from its controls focus. "We do what we do best, let the others do what they do best," was the mantra.

AMX CEO Rashid Skaf says that the recent acquisitions do not undermine that age-old AMX philosophy but in fact reinforce it. He explains that AMX has not developed audio and switching systems, for example, in-house because that's not AMX's core competency.

"We're saying the same thing," he says. "We're looking for the best of breed. In some cases we'll have partnerships; in some cases we'll add them [to the AMX family]."

In the same vein, the newly acquired companies will operate somewhat autonomously. "Where we want to dominate is in the expertise and focus of design teams and engineering," says Skaf. "We want teams that know exactly what they're working on. Even in AMX, we have some people that work on touchscreens and others that work on controllers."

Skaf insists that each new product line "needs to stand on its own." Even so, he says, "Lines will start to meld, like switchers with controllers. There will be tighter integration."

So, for example, the Matrix multiroom audio systems might incorporate elements of other AMX control systems, giving them the potential to become a springboard to higher-end AMX solutions.

Unlike AMX and AutoPatch, Matrix is a pure residential play, with a core multizone controller for four- to eight-zone systems. What the company is most known for is its Speaker Wire Technology, which enables control commands to travel on the same four-conductor speaker wire that feeds the keypads and speakers -- no Cat 5 required. The technology makes for a sensible retrofit solution. Older homes wired for volume controls can swap those out for fuller-featured Matrix keypads.

"It opens up 99 percent of the market that's retrofit," says Skaf. And because it's affordable, the Matrix line is "perfect for expansion into the builder and MDU [multidwelling unit] markets," he adds.

AMX has been shoring up its retrofit line lately. The company recently introduced its first ZigBee wireless products -- a two-way remote and a gateway-and more ZigBee products, possibly lighting controls, are expected to follow.

Expanding the AMX Family

While technology development might be fairly well segmented among the various companies, sales, marketing and operations are a different story. All of the acquired companies will become part of AMX, using their original brand names on their respective product lines.

Everything will be sold by AMX salespeople "through our own channel and with our own people, whether it [system] is with AMX control, other control systems or no control at all," says Skaf.

Do you have to be an "AMX dealer" to buy AutoPatch or the other lines? Sort of. "There is no distinction anymore. You have to be an AMX dealer," Skaf says. "But you can be an AMX dealer and just buy AutoPatch."

The original offices of the acquired companies will remain put. In fact, all of the facilities will offer AMX dealers training on all of the product lines. Skaf says, "Now we'll have six training centers in the U.S. with all the companies. To get training on AutoPatch, you don't have to go to [Cheney,] Washington," where the company is based. As for Matrix Audio, AMX expects the company to double its business in 12 months.

AMX might not be finished with distributed audio either, and the company might be on the prowl for more companies with lower-cost solutions like Matrix. "I'm still looking to add to the distributed audio line, whether we develop our own or buy another line," Skaf says. "We're not done yet. There's not really a gap, there are just additions that you might want to have."

Surround sound? "I'm not saying we're going into surround-sound processors, but we might."

Recent Product Developments at Matrix

Matrix Audio's claim to fame is its Speaker Wire Technology, which enables a single four-conductor speaker cable to carry both audio and control signals. Employed previously only in Matrix's line of distributed audio systems, the technology will now be used in a new line of speakers from the company.

The C-Series speakers within the Mi series of products includes a built-in IR receiver and LED status indicator, enabling users to control the audio system and local zones via remote -- no keypad required.

"You don't have to run any proprietary cable because it works over speaker wire," says Jeff Wait, vice president of sales and marketing. "It's the ultimate retrofit opportunity because you don't need a keypad. You can just swap out speakers and put in a controller."

The product works with any of Matrix Audio's four-, six-, or eight-zone amplified multiroom controllers.

Wait also suggests that the speakers are ideal for commercial applications. "Without keypads, no one can mess with the audio."

Shipping since April 2006, the 6.5-inch dual-tweeter speakers retail for $600.

More recently, Matrix has demonstrated MiControl, a new .net-based Web interface for its control systems. "It provides a richer experience through the computer than you can get through Matrix's own current products," says Feisal Hurzook of Archronix, which assisted with the development of the solution.

The software enables users to adjust audio settings, create radio presets, receive metadata, set up and control groups of audio zones, and perform a number of other feats associated with robust audio control.