Quantel Editing Professional Audio And

Whats unique, I believe, is our RD; relationship with the creative community, said Ellis, who has worked for Quantel since he was in college 25 years ago.

That can be good news for those who want to start special-effects operations in their garage.

Its bad news for makers of the expensive equipment that was once necessary to produce special effects.

Silicon Graphics and other computers that use the Unix operating system have been steadily losing market share to machines costing a fraction as much.

One maker of specialty hardware bucking the trend is Quantel, which manufactures proprietary film-editing and visual-effects systems that are fully digital.

All of Quantels machines use a pen and tablet mechanism exclusively; Quantel Chief Executive Ken Ellis likens the system to an artist using a paintbrush.

Strokes of a pen-shaped stylus with a metal ring in the tip disrupt the electromagnetic field in a desktop tablet, causing elements to be added, removed or changed according to the operators wishes.

Need to remove an actor who didnt work out from an otherwise fine shot Blot him out, and stick a potted plant in front of him.

Want to change the color of a background It just takes a few strokes of the pen.

The price of Quantels systems range from 30,000 to as much as 1 million, depending on the components.

These prices are steep, and Quantel admittedly doesnt make mass-market items.

There are currently about 400 Editbox units in use now, at various postproduction houses and television networks around the world.

But companies that bank on speed, ease of use and return on investment to compete in the entertainment industry see the Editbox and other Quantel equipment as a sound choice.

Wyskocil says EDS--which specializes in digitally restoring older films for studios--still makes money from a Paintbox they originally bought in 1982.

Most other manufacturers equipment becomes obsolete in two or three years, he said.

Ellis said the company has put a particular emphasis on customer support since being acquired by Carlton Communications in 1992.

Carlton has quietly become ubiquitous in the U.S.

If you watch television or go to the movies at all, youve seen the work of Quantels equipment.

The Britain-based company produces no content and owns no television stations in the U.S.

Foreign ownership restrictions prohibit the company from having the same kind of television operations here that it does in Britain, where Carlton is a well-known name.

Green decided the company needed to diversify and gain critical mass to compete in the global marketplace.

Several major acquisitions were made within months of one another.

Quantel Editing Professional Audio And

These included Technicolor Inc., purchased from Ronald Perelman for 780 million in 1988, and UEI, a maker of high-end professional audio and video equipment, bought for 1.5 billion in 1989.

UEI included Quantel and the Solid State Logic audio company.

More than one-third of Carltons revenue now comes from North America.

Quantels revenue is experiencing a stronger growth rate.

The revenue of Carlton Communications products division--which includes Quantel and Solid State Logic, with the majority attributable to Quantel--has increased about 10 in the last two years, from 277.7 million to 302.3 million at the current exchange rate.

Operating profits are up 61, from 52.8 million to 84.9 million.

Ellis attributes the growth to a combination of cutting-edge research and development, heightened customer service and the fact that the company actively seeks feedback from its clients--those professionals who use Quantel equipment every day.