Koss Corp Releases Fourth Quarter Results
August 24 2017 - 5:15PM
Koss Corporation (NASDAQ:KOSS), the U.S. based high-fidelity
headphone company, has reported its fourth quarter results for the
quarter and year ended June 30, 2017.
Sales for the fourth quarter were $6,243,863,
which is a 13.74% decrease from sales of $7,238,684 for the same
three month period one year ago. The three month net loss was
$70,376, compared to net income of $233,487 for the fourth quarter
last year. Diluted and basic loss per common share for the
quarter was $0.01 compared to income per common share of $0.03 for
the three month period one year ago.
"Our distributors in Asia and Scandinavia
continue to buy at levels below last year as they work to reduce
their inventory. The declines in foreign distribution were
partially offset by improved sales in the U.S. through on-line
retail, mass retail and certain distributors," Michael J. Koss,
Chairman and CEO, told employees here today. "The lower sales
resulted in a decline in earnings causing a loss for the
quarter."
Sales for the twelve months ended June 30,
2017, decreased by 7.5% to $24,054,281 compared with $26,001,346
for the same twelve month period a year ago. Twelve month net
loss was $963,636 compared to net income of $1,389,000 for the same
twelve months last year. Diluted and basic loss per common
share was $0.13 for the twelve months ended June 30, 2017, compared
with income of $0.19 for the same twelve month period a year
ago.
In the twelve months ended June 30, 2017,
sales declined to distributors in Scandinavia, Asia and
Africa. These declines were partially offset by improved
sales to the OEM customer in Asia combined with improved sales to
domestic distributors. In the domestic market, Koss also had
increased sales through mass retail and on-line retail.
"We have seen improvements in our on-line
channels especially in the U.S. However, this is not enough
to offset the continued weakness in Asia and Scandinavia," Koss
continued. "Our focus continues to be increasing sales through our
various channels and driving new products to market."
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
OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
June 30 |
|
June 30 |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net sales |
|
$ |
6,243,863 |
|
|
$ |
7,238,684 |
|
|
$ |
24,054,281 |
|
|
$ |
26,001,346 |
|
Cost of goods sold |
|
4,447,831 |
|
|
4,717,610 |
|
|
17,158,977 |
|
|
17,058,774 |
|
Gross profit |
|
1,796,032 |
|
|
2,521,074 |
|
|
6,895,304 |
|
|
8,942,572 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
1,871,021 |
|
|
2,098,859 |
|
|
7,599,882 |
|
|
7,959,460 |
|
Unauthorized
transaction related costs (recoveries), net |
|
(6,211 |
) |
|
— |
|
|
67,548 |
|
|
(1,286,001 |
) |
Interest expense |
|
— |
|
|
— |
|
|
964 |
|
|
6,075 |
|
(Loss)
income before income tax provision |
|
(68,778 |
) |
|
422,215 |
|
|
(773,090 |
) |
|
2,263,038 |
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
1,598 |
|
|
188,728 |
|
|
190,546 |
|
|
874,038 |
|
|
|
|
|
|
|
|
|
|
Net
(loss) income |
|
$ |
(70,376 |
) |
|
$ |
233,487 |
|
|
$ |
(963,636 |
) |
|
$ |
1,389,000 |
|
|
|
|
|
|
|
|
|
|
(Loss) income per
common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
$ |
(0.13 |
) |
|
$ |
0.19 |
|
Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
$ |
(0.13 |
) |
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
Michael J. Koss
Chairman & CEO
(414) 964-5000
mjkoss@koss.com
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