Koss Corp. Releases First Quarter Results
MILWAUKEE, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high-fidelity headphone company, has reported its first quarter results for the quarter ended September 30, 2019.
Sales for the first quarter were $5,410,762, which is a 6.5% decrease from sales of $5,784,839 for the same three month period one year ago. The three month net loss was $310,749, compared to net income of $41,570 for the first quarter last year. Diluted and basic loss per common share for the quarter was $0.04 compared to income per common share of $0.01 for the same three month period one year ago.
"The decline in net sales for the quarter was due to export OEM sales last year that were not duplicated this year because the contract ended in early fiscal 2019," Michael J. Koss, Chairman and CEO, said today. "In addition, we experienced softness in key export markets offset by increased sales in the domestic mass retail and domestic distributor markets."
"The sales mix caused an unfavorable impact on gross margin from 31.7% last year to 24.9% in the current quarter," Koss explained. "Early in the current quarter, there were significant promotional back-to-school sales to a domestic mass retail customer at very low margins. This promotional activity accounted for most of the decline in gross margin."
Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, wireless headphones, and compact disc recordings of American Symphony Orchestras on the Koss Classics® label.
This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "may," "will," "should," "forecasts," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology. These statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual events or results may differ materially. In evaluating forward-looking statements, you should specifically consider various factors that may cause actual results to vary from those contained in the forward-looking statements, such as general economic conditions, in particular, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances or new information. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.
KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | ||||||||
| September 30 | ||||||||
| 2019 | 2018* | |||||||
| Net sales | $ | 5,410,762 | $ | 5,784,839 | ||||
| Cost of goods sold | 4,063,308 | 3,953,655 | ||||||
| Gross profit | 1,347,454 | 1,831,184 | ||||||
| Selling, general and administrative expenses | 1,664,600 | 1,789,589 | ||||||
| (Loss) income from operations | (317,146 | ) | 41,595 | |||||
| Interest income | 6,397 | - | ||||||
| (Loss) income before income tax provision | (310,749 | ) | 41,595 | |||||
| Income tax provision | - | 25 | ||||||
| Net (loss) income | $ | (310,749 | ) | $ | 41,570 | |||
| (Loss) income per common share: | ||||||||
| Basic | $ | (0.04 | ) | $ | 0.01 | |||
| Diluted | $ | (0.04 | ) | $ | 0.01 | |||
| Weighted-average number of shares: | ||||||||
| Basic | 7,404,831 | 7,389,751 | ||||||
| Diluted | 7,404,831 | 7,483,866 | ||||||
*As adjusted for change in accounting principle
| CONTACT: | Michael J. Koss |
| Chairman & CEO | |
| (414) 964-5000 | |
