Koss Corp. Releases Q4 Results
August 22 2019 - 5:15PM
Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based
high-fidelity headphone company, has reported its
fourth quarter results for the quarter ended June 30,
2019.
Sales for the fourth quarter
were $5,785,784, which is a 19.2% decrease from sales
of $7,157,261 for the same three month period one year
ago. The three month net income was $53,921, compared to net
income of $270,406 for the fourth quarter last year.
Diluted and basic income per common share for the quarter
was $0.01 compared to $0.04 for the three month
period one year ago.
"Most of the decline in net sales for the year
occurred in our fourth quarter," Michael J. Koss, Chairman and CEO,
said today. "The decline was principally related to a
back-to-school promotion which shifted from June to July this
year. In addition, there were shipments to an OEM last year
that did not occur in this year's fourth quarter as the contract
ended. Export distributors have shown continued strength but
were weaker in this year's fourth quarter than they were last
year."
Sales for the year ended June 30, 2019,
decreased 7.1% to
$21,842,097 from $23,522,631 in the year ended June
30, 2018. The net income for fiscal 2019 was $434,114 compared
to a net loss of $3,411,220 last year. Diluted and basic
income per common share was $0.06 for the year ended
June 30, 2019 compared to a loss per common share of
$0.46 last year.
"Good mix of sales and controlled spending
resulted in net income for the twelve months ended June 30, 2019,
compared to a loss last year," Koss explained. "In the year
ended June 30, 2019, we improved gross margin through improved
product mix and control of spending. Operating expenses were
$504,715 lower in fiscal 2019 than they were last year.
The margin improvement and decreased spending resulted in a
$776,987 jump in pretax profit. Last year saw the
impact on the bottom line of tax adjustments to write-down deferred
tax assets to the new federal statutory rate as well as increase
the valuation allowance for deferred tax assets. These adjustments
drove an increase in tax expense for the twelve months ended June
30, 2018."
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 CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net sales |
|
$ |
5,785,784 |
|
|
$ |
7,157,261 |
|
|
$ |
21,842,097 |
|
|
$ |
23,522,631 |
|
Cost of goods sold |
|
|
4,114,797 |
|
|
|
5,175,336 |
|
|
|
15,022,223 |
|
|
|
16,966,633 |
|
Gross profit |
|
|
1,670,987 |
|
|
|
1,981,925 |
|
|
|
6,819,874 |
|
|
|
6,555,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
1,617,396 |
|
|
|
1,717,031 |
|
|
|
6,415,441 |
|
|
|
6,920,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
53,591 |
|
|
|
264,894 |
|
|
|
404,433 |
|
|
|
(364,158 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income) expense |
|
|
(3,178 |
) |
|
|
- |
|
|
|
(3,178 |
) |
|
|
5,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax provision |
|
|
50,413 |
|
|
|
264,894 |
|
|
|
407,611 |
|
|
|
(369,376 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
provision |
|
|
(3,508 |
) |
|
|
(5,512 |
) |
|
|
(26,503 |
) |
|
|
3,041,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
53,921 |
|
|
$ |
270,406 |
|
|
$ |
434,114 |
|
|
$ |
(3,411,220 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
(0.46 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,404,831 |
|
|
|
7,382,706 |
|
|
|
7,401,030 |
|
|
|
7,382,706 |
|
Diluted |
|
|
7,405,425 |
|
|
|
7,382,706 |
|
|
|
7,407,827 |
|
|
|
7,382,706 |
|
CONTACT: |
Michael J. Koss |
|
Chairman & CEO |
|
(414) 964-5000 |
|
mjkoss@koss.com |
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