Premium Audio Company is showing signs of a major financial turnaround under new owner Gentex, with Australian distributor Westan positioned to benefit from renewed demand for Klipsch and Onkyo products in the specialist Channel following years of disruption and declining revenues.

Premium Audio Company (PAC), owner of Klipsch, Onkyo and Integra, has reported a 27% surge in third-quarter revenue, marking a significant turnaround for an audio business that previously struggled with declining sales, management upheaval and controversial changes to its Australian distribution operations.

The recovery comes as both Klipsch and Onkyo celebrate their 80th anniversaries in 2026, with the brands now operating under US automotive technology group Gentex, which acquired former parent VOXX International in April 2025.

In Australia, Melbourne-based distributor Westan is positioned to benefit from the improved performance, with Klipsch and Onkyo products sold through major retailers including Harvey Norman, JB Hi-Fi and Costco, alongside specialist audio dealers with Westan benefitting from growth in the specialist Audio channel.

The improved outlook represents a sharp contrast to the problems that affected Premium Audio Company’s former Australian operation under Peter Shamoon and Phil Hawkins, when the business faced questions over its local distribution strategy, management decisions and relationships with established channel partners.

Those problems coincided with a period of deteriorating financial performance at the former VOXX-owned audio business, although the extent to which Australian operations contributed to the group’s overall decline has not been publicly established.

According to Gentex’s latest financial results, released in late October, Premium Audio Company generated third-quarter revenue of US$54.7 million, compared with approximately US$43 million in the corresponding period last year.

That represents an additional US$11.7 million in quarterly sales, with management identifying stronger demand for home audio separates and speaker systems as the principal drivers of growth.

The increase is particularly significant given the difficult trading conditions affecting parts of the global consumer audio industry, where competition, price pressure and cautious consumer spending have weighed on several established brands.

Gentex said demand for Klipsch Reference Premiere loudspeakers contributed to the improvement, alongside growth from Flexus systems, second-generation Fives, Sevens and Nines powered speakers, and ProMedia products.

The sales mix suggests that traditional home audio products, including premium loudspeakers and integrated entertainment systems, remain an important growth opportunity despite the increasing popularity of soundbars, wireless speakers and lower-priced audio products.

More importantly, Gentex has previously disclosed that the Premium Audio division returned to positive operating income during the first half of 2026.

That represents a substantial improvement from the financial deterioration experienced under VOXX International, before Gentex took control of the business.

Gentex management has attributed the improvement to integration initiatives, operational changes and tighter cost controls.

The restructuring also raises questions about how much money was previously being spent supporting international operations, including Australia, and whether those expenditures were generating an adequate commercial return.

Although Gentex has not released detailed Australian financial results, the change in distribution arrangements and the renewed emphasis on established retail partners represent a different approach from the company’s earlier efforts to manage its local operations directly.

The Australian operation’s problems date back to 2021, when VOXX moved to establish its own subsidiary after ending its relationship with Melbourne distributor Qualifi.

The decision became controversial after several former Qualifi executives, including Shamoon, Hawkins and Bill Liacopoulos, joined the new operation.

At the time, ChannelNews reported that Shamoon had acknowledged engaging with Klipsch over its proposed Australian operation while still employed by Qualifi. The departure subsequently became the subject of an employment dispute.
The new management team initially outlined ambitious plans to expand Klipsch and other Premium Audio brands across Australian retail channels.

However, the strategy quickly ran into difficulties.

In August 2021, ChannelNews reported allegations from company insiders that the business was missing sales targets, experiencing product returns and struggling to secure retail ranging.

Staff were also reportedly concerned about bonus payments after sales failed to reach management expectations.
The problems were compounded by complaints involving Klipsch soundbars, with ChannelNews subsequently reporting that product returns and design-related issues were creating additional pressure on the Australian operation.

By April 2023, Hawkins had departed the business, leaving Shamoon in a senior role as the company attempted to restructure its local operations.

At the time, ChannelNews reported claims from industry sources that management was preparing to reduce costs after failing to achieve its original Australian sales targets.
channelnews

The financial pressure was not confined to Australia.

VOXX’s Premium Audio product revenue for the first nine months of fiscal 2023 had fallen to US$212.6 million from US$252.6 million a year earlier, a decline of 15.8%.

That represented a US$40 million reduction in sales at a time when the company was attempting to justify its investment in directly managing the Australian market.

By October 2023, ChannelNews was reporting that Premium Audio Company was again considering third-party distribution arrangements after spending heavily on premises, marketing and establishing its own local infrastructure.

Westan subsequently emerged as a distributor of Premium Audio products, reversing part of the earlier direct-distribution strategy.

channelnews. Shamoon’s departure followed in December 2023, completing the exit of the three former Qualifi executives who had been involved in establishing the Australian subsidiary.

At the time, Shamoon told ChannelNews he was taking time away to be with his sick mother, he is now working for River Edge Group as Operations Manager.

The latest Gentex financial results now suggest that the broader Premium Audio business is moving beyond that troubled period.

However, while revenue is increasing, Gentex’s third-quarter results also revealed pressure on group profitability.

The company’s overall gross margin slipped from 34.4% to 33.4%, a decline of one percentage point.

Importantly, this was the gross margin for Gentex as a whole, rather than a separately disclosed margin for the Premium Audio division.

Gentex reported total third-quarter revenue of US$647.7 million, compared with US$655.2 million a year earlier, highlighting the stronger performance of Premium Audio against weaker overall group sales.

The recovery also coincides with a major marketing opportunity for Klipsch and Onkyo.

Both brands are celebrating their 80th anniversaries, with Klipsch using the occasion to introduce a limited-edition anniversary Klipschorn loudspeaker.

Limited to just 280 pairs worldwide, the US-made loudspeakers are handcrafted in Hope, Arkansas, and feature a Tigerwood finish, brass detailing and an active crossover.

The US asking price is US$24,998 per pair, positioning the anniversary model firmly in the high-end collector and audiophile market.

Klipsch has also used the anniversary to highlight its partnership with Onkyo, including a Heritage system combining the anniversary Klipschorn with Onkyo’s Icon electronics.
Klipsch

For Westan and Australian retailers, the anniversary provides an opportunity to promote the brands at a time when Premium Audio’s international financial performance is improving.

The critical question now is whether the renewed sales momentum can be sustained and translated into stronger profitability and market share in Australia.

Gentex has not disclosed Australian revenue, profitability or market-share figures, making it impossible to determine how much of the latest global improvement is attributable to local sales.

What is clear is that Premium Audio Company is now reporting growth after years of financial and operational problems, while its Australian distribution model has moved away from the strategy that generated considerable controversy earlier in the decade.