Masimo Consumer Is For Sale, Is Premium Audio Company Next As Vox Admits To Asset Sales Following Sales Slump

They stormed into the Australian market now Voxx International Corporation the owners of the Premium Audio Company are looking to sell key brands as the business wallows from one bad quarter to another with PAC sales down in Australia.

There is also speculation that both Vox International and Masimo Consumer the manufacturer of Marantz, Denon and Bowers & Wilkins could be sold in the near future as both Companies struggle in the premium audio market.

In their latest filings Vox International the business that hired and then fired several senior industry executives in Australia, after a disastrous move to set up their own subsidiary, in an effort to sell direct Vs a distributor has reported another poor result with an 18% fall in sales.

The good news is their constant losses and fall in sales, are smaller this time round than what was reported during the same period last year.

Total overall sales in the first quarter of 2024/2025 year were US $91.7 million which was a decline of $20.3 million or 18.1% as compared to Net Sales of $111.9 million in the same quarter last year.

The Company that sells Klipsch, Pioneer, Onkyo, AR, Integra, and Jamo, via a subsidiary known as Premium Audio Company reported consumer electronics net sales of $63.9 million which was a decrease of $9.4 million or 12.8% compared to Q1 in Fiscal 2024.

The business has been struggling ever since they cut a deal with Sharp to manufacture Integra, Pioneer and Onkyo products.

The fall in sales also comes after an aggressive restructuring of its business that included a headcount reduction and a cutback in almost all major cost centres impacting the business, ironically PAP sales increased in the US market but not in Australia where management has been slashing headcount and costs, during the past year.

Voxx International CEO, Pat Lavelle, who had no qualms axing his former distributor Qualifi that at the time reported a 25% increase in Vox product sales, and after former staff scooped up confidential information as they headed to work for the new PAC operation in Australia, claims that during the first quarter of 2024, the Company took aggressive steps to improve gross margins and lower both their operating expenses and working capital needs with cost cuts of 16%.

Lavelle admits that “the retail environment remains challenging, interest rates are high, and inflation is still a major concern”.
He said that the business is “In a number of discussions regarding divesting some of our business assets and potentially some of our brands”.

What brands will be sold is not known with insiders tipping that the Company could offload one of their receiver brands.

Premium Audio Products, a category that has struggled for several quarters delivered net sales of US $48.4 million which was an increase of $778,000 or 1.6% over net sales of $47.6 million in the quarter last year,

International sales were down especially in Australia according to local sources while US sales increased 11%, largely due to the introduction of new audio models which have not been released in Australia.

The company reported a net loss of $7.1 million this quarter, the same quarter loss in 2023 was $11.4 million.

The business told financial analysts that the company expected to lose money again in the second quarter of Fiscal 2025 while also tipping a return to profitable in the back half of the fiscal year.

On a conference call with financial analysts, Lavelle promised a more aggressive restructuring and new efforts to transform the company for the times ahead.

The problem is, he’s taken this approach before, and during previous quarter conferences he’s promised the same but failed to deliver growth.

He’s admitted that the business is concerned over their current debt level and their depressed share price, which is sitting near 52-week lows.

Lavelle admitted that the past two years have “seen a myriad of global challenges, resulting in the business missing revenue projections.

His new word is “rightsizing” with the business now bringing in consultants to help with the restructure of the business ahead of what could be a sale of the business.

Currently the business sells over 35 brands with all products, channels, markets, and businesses set to undergo a tough assessment to determine if they meet the company’s new “stability, profitability, and growth potential” goals claim management.

During the last quarter the company hired Accordion, a consulting company, to help with the restructure of the struggling business.

Accordion markets itself as “The Leader in Private Equity Consulting.” with the business known for setting up businesses ‘For Sale’.

Lavelle claims that Accordion will help them with an outside perspective on “other optimization programs we could implement this year.”.

Next week Masimo Consumer is tipped to announce the Company or Companies interested in buying the Masimo Consumer business.

Lavelle has suggested big changes ahead.

Driving the point further, Lavelle added, “We are in a number of discussions regarding divesting some of our business assets and potentially some of our brands. As these transactions are completed, net proceeds will be used to pay down the debt we incurred in connection with the Seaguard ruling.”

While the CEO said they will look at all brands and businesses, he also told analysts that, “Klipsch and Onkyo continue to anchor our offering [in CE] and will be the driving brands in our Premium Audio Portfolio.”