Most consider the Charter Arms ownership of the AR-7 brand the dark period. At this point problems started for our little handy AR-7 as it was kicked around from manufacturer to manufacturer. ArmaLite produced the AR-7 from 1959-1973 at which point Charter Arms purchased the rights and took over AR-7 manufacturing from 1973-1990. The AR-7 still is and was designed first and foremost as a ultra-light packable survival rifle with features unlike any other rifle.
22 caliber semi-automatic AR-7 design in 1959 we see today. Meanwhile, the AR-5 was a hit and civilians were screaming for a similar handy little take down survival rifle.