Koss Corp. Releases First Quarter Results
November 07 2019 - 5:15PM
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
CORPORATIONCONDENSED 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 |
|
mjkoss@koss.com |
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