Counterpoint Electronic Systems

Counterpoint Electronic Systems Inc. was a high-end audio equipment manufacturer originally established in 1977 in Beverly Hills, California. The company was purchased by Michael Elliott in 1980 who was president and chief designer until company ceased operations in 1997-98.

Founding of Counterpoint and first Pre-amplifier

Counterpoint Electronic Systems Inc. was founded in Beverly Hills, California in 1977.  Its first audio product was the SA-1 pre-amplifier designed by Ed Semanko.  Like nearly all future Counterpoint products, it employed vacuum tubes in its signal path.  The SA-1 used two 6DJ8 triode, or Audion tubes in the phono stage and two 12AX7 triode tubes in the line stage. During the 1970s, the primary means of stereo audio signal input was from records on turntables or from reel-to-reel or compact cassette tapes. The list price for the SA-1 was $1850.00.  Counterpoint did not offer an amplifier at this time.  The SA-1 was the company’s sole product for several years.[1]

Michael Elliott purchases Counterpoint

In 1979, Michael Elliott joined the company and his first project was to design a phono moving-coil head amplifier.  Elliott had grown up intrigued by electronic circuits as a teenager, often taking apart and reassembling amplifiers and receivers.  He received formal electronic circuit design education during the 1970s.  Within a year of joining Counterpoint, he succeeded in getting the financing to purchase the company in 1980.  He moved the company from Beverly Hills to San Diego. [2] [3]

For two years, the SA-1 was Counterpoint’s only product, but Elliott made additional revisions to the pre-amplifier’s circuit design. During this time he worked on the design of the SA-2 MC designed to boost the output of moving coil phono cartridges. The SA-2 MC had a separate small enclosure for the transformer; it was introduced in 1982 with a price of $895.00.  Stereophile magazine reviewed the SA-2.[4]  That same year, the SA-3 pre-amplifier for moving magnet phono cartridges was also introduced at $795.00

During the 1980s, Elliott significantly expanded Counterpoint’s product range. Many new products were introduced in 1984.  The first power amplifier, the SA-4 was a single, or mono, channel design, so two SA-4s were needed for stereo reproduction.  Two SA-4s had a list price of $4000.00.  The SA-7 Pre-amplifier was something of a bargain audiophile component with a price of $495.  That year Counterpoint’s first stereo power amplifier, the SA-8 was released with a price of $2395.00. This was followed by the SA-11 Control Amplifier with premium components and expanded capability and a price of nearly $8000.00.  Also introduced in 1984 was the SA-12 Power Amplifier, and the SA-20 Power amplifier. [1]

Counterpoint introduced the SA-5 and SA5.1 in 1985 and 1986, respectively. This was a moving magnet phono preamp with a list price of $1795.00.  The SA-100 Power Amplifier came out in 1988, having 100 watts per channel.  This model was reviewed by Stereophile magazine in its April 1991 issue but the amplifier did not get a favorable review.[5] Stereophile editors subsequently tested another unit but the amplifier still did not gain a favorable review.

In 1988, Counterpoint also introduced the SA-220 Power Amplifier having 220 watts per channel into 8 ohms with a list price of $2,995. The SA-1000 Preamplifer, the SA-2000 Line Stage Preamplifier and SA-3000 were all introduced in 1989, with list prices of $1,195, $1,595, and $2,195 respectively.

Counterpoint components during the 1990s

In 1990, Counterpoint introduced its most expensive preamplifier: the SA-5000.  It incorporated JDK8 tubes in both the phono stage and the line stage.  To appeal to the home theater buyer, this preamp also had video capability having solid state video buffers.  There was an outboard voltage regulator.  List price was $3,995.

The Natural Progression Mono Power Amplifier was introduced in 1992. It could be said all Counterpoint components were limited production, but these amplifiers had a low production run because of the price of just under $4500; two were required for a stereo system. This amplifier appealed to the wealthy, purist audiophile.

The Natural Progression Stereo Power Amplifier followed in 1994, having a sufficient 70 watts per channel.  Price was $1,995. Two more Natural Progression stereo amplifiers were introduced that year. These were the NPS200 having 100 watts per channel with a price of $2,995 and the NPS400 having 200 watts per channel and a price of $4,395.

Counterpoint did manufacture completely solid state pre-amplifier and amplifiers as part of the Solid series.  It also offered a number of home theater components, digital-to-analog converters, CD transports and even a line of home theater speakers.  [1]

Elliott Audio Science & Engineering (EASE)

During the mid-1990s, Michael Elliott decided to respond to complaints Counterpoint had compromised its values by offering home theater and solid state components.  He began work on the design of cost-no-object components under the boutique brand name Elliott Audio Science and Engineering—or EASE for short.  The $15,000 Magnum Opus One line-level pre-amplifier had an inherent design flaw as a result of a poorly designed transformer from a California company.  Only fifty units were manufactured when production stopped.  The Claritas One (also known as Magnum Opus Two) was to be a more affordable pre-amplifier, and the Magnum Opus Mono Amplifier never saw production because Counterpoint encountered legal problems. [3]

Counterpoint Bankruptcy and Alta Vista Audio

At its peak in the mid-1990s, Counterpoint employed over 60 people.  In 1996, the company filed for Chapter 11 bankruptcy protection in an effort to stop the forced liquidation by the commercial bank holding the company’s commercial loan. Elliott was baffled by this move by the bank because, in his own words, “It should be noted that the time the bank took this action, Counterpoint was current on its loan and had never missed an interest or principal payment.” [1]

Under the Chapter 11 filing, Counterpoint could continue to operate but the company found it difficult to continue to do so.  With the news of its bankruptcy filing, sales declined significantly.  Layoffs began as its cash flow situation worsened. In February 1998, a U.S. Trustee on behalf of the bank moved Counterpoint to Chapter 7 status. In April of that year, a public auction was held at the company facility and all assets were sold, including the brand name Counterpoint and Elliot Audio Science and Engineering.

Counterpoint had performed warranty work throughout its existence.  Elliott wanted to continue this service for Counterpoint component owners and offer upgrades to those wanting it.  He started the service company Alta Vista Audio to do this.  He published potential upgrades for a number of the Counterpoint preamplifiers and amplifiers and personally performed much of the warranty, out-of-warranty repairs and upgrade work along with a skilled technician. 

“There’s something about being a manufacturer that needs to be acknowledged,” Elliott explained to Stereophile magazine editor Jon Iverson.  “One cannot ever go backwards—one must move forward always with new designs.  With Counterpoint gone, I am no longer involved in manufacturing, so the pressure to create new products is removed.  And since I have always been more a designer and a tinkerer than a businessman, I realized that I have an ideal opportunity to see what could be done to my old designs to improve their performance.”[6]

Aria Audio and Elliot’s retirement

Elliott continued Alta Vista Audio from his home in Vista, California.  He continued to work out amplifier and pre-amplifier designs on paper and wanted to see one design realized. It would be radically different in appearance.  He also decided these new components would be sold directly to the consumer; there would be no dealers. He established Aria Audio in 2001.  The WT (for Whole Tone) 100  stereo amplifier had 100 watts per channel.  The WT 100 employed his latest thinking in circuit topology and the finest components he could obtain.  It measured 12.0 inches high, 8.0 inches wide and 16.5 inches deep. The majority of the front and side panels were extruded and machined aluminum with open sections to permit cooling and visibility of the components inside. [6]

The WT 100 XL LS Stereo Amplifier was reviewed by Art Shapiro at Positive Feedback, the online audiophile magazine.  “My initial days with the amplifier were less than stellar, to put it politely.  The sound was remarkably lifeless and unexciting,” Shapiro wrote.[7]  A second unit modified by Elliott in Shapiro’s home yielded better results and the written review ended on a positive theme.

The WT100 and its designer were also profiled by Srajan Ebaen for Enjoythemusic.com.  This article was the first in-depth piece to delve into Elliott’s background, how he got into audio component engineering, and the rise, fall and end of Counterpoint Electronic Systems.  Ebaen reported that the entire production of this amplifier had been ordered by a large group of Japanese audiophiles, but the exact number of units was not revealed. [3] After decades of living and working in California, Elliott moved to Bend, Oregon and purchased a home.  Aria components were built in limited numbers in the home he purchased there.  Elliott continued to build Aria components until 2012. In May of that year, he ceased work and made the announcement in his personal blog that he was ending all production and upgrade work.  This news was picked by audio forums and blogs.[8]

There is a curious footnote to the Counterpoint Electronics story. Around 2016, new Counterpoint components with the company’s logo appeared at an audio show in China. Looking closely at the back of the components, next to the serial number are the words: “Originate from U.S.A.” Elliot lost the copyright for the name and logo in the bankruptcy proceedings. The company has not been revived in the United States, so it can only be assumed these components were made in China. A high-end audio reseller in Guangzhou province lists Counterpoint components for sale.

A. H. Young 1/1/2019

Reference Articles and Websites

[1] Counterpoint Product Guide, Alta Vista Audio.  (website expired; info archived)

[2] Jon Iverson, Stereophile , July 5, 1998.

[3] Srajan Ebaen, “A New Era In The Area of Arias: Michael Elliott of Aria Ltd. Talks Off the Cuff”, Enjoying the Music.com. Undated.

[4] “Perhaps the most nearly-perfect head amplifier available today,” Stereophile, undated.  

[5] ”Counterpoint SA-100 power amplifier,” Stereophile magazine, April 1991. http://www.stereophile.com/solidpoweramps/491counter/index.html

[6] “Whatever Happened to Counterpoint?” Stereophile.com, July 5, 1998. http://www.stereophile.com/news/10202/.

[7] Art Shapiro, “Aria Audio WT100 XL LS stereo amplifier,” Positive Feedback Online, Issue 6, http://www.positive-feedback.com/Issue6/aria.htm

[8] http://www.whatsbestforum.com/showthread.php?6805-Alta-Vista-Audio-closing-it-s-doors.