Koss Corp. Releases Q4 Results
August 20 2020 - 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,
2020.
Sales for the fourth quarter were
$3,948,967, which is a 31.7% decrease from sales of
$5,785,784 for the same three month period one year ago. The
three month net income was $158,239, compared to net
income of $23,388 for the fourth quarter last
year. Diluted and basic income per common share for the
quarter was $0.02 compared to diluted and basic
income per common share of $0.00 for the three month
period one year ago.
“We experienced lower sales in the quarter as
retail in the US and Europe struggled to rebound from the negative
impact of the COVID-19 pandemic," Michael J. Koss, Chairman and
CEO, said today. "Communications products have become a more
significant segment of our revenue as people shifted to
working and studying from home." Koss went on to explain that
the Company received a recovery of patent related legal fees in the
quarter and experienced improved margins of 34.5% in the
three months ended June 30, 2020 compared to 28.9% in the same
quarter last year.
Sales for the year ended June 30, 2020,
decreased 16.2% from $21,842,097 in the same period last
year to $18,311,830 in the current year. The net loss for the
year ended June 30, 2020, was $465,597 compared to net
income of $305,989 for the same period last year. Diluted
and basic loss per common share was $0.06 for the year
ended June 30, 2020 compared to income per common share of
$0.04 for the same period one year ago.
“The decline in sales for the year was entirely
in the export markets with Europe basically shutting down to fight
the pandemic. Sales to Asia decreased with completion of a
contract during the prior fiscal year,” Koss said. “We were pleased
to see sales in domestic markets hold up although there were clear
shifts in channels as more sales moved online.”
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, |
|
|
|
2020 |
|
|
|
2019* |
|
|
|
2020 |
|
|
|
2019* |
|
Net sales |
|
$ |
3,948,967 |
|
|
$ |
5,785,784 |
|
|
$ |
18,311,830 |
|
|
$ |
21,842,097 |
|
Cost of goods sold |
|
|
2,587,676 |
|
|
|
4,114,799 |
|
|
|
12,649,222 |
|
|
|
15,022,223 |
|
Gross profit |
|
|
1,361,291 |
|
|
|
1,670,985 |
|
|
|
5,662,608 |
|
|
|
6,819,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
1,207,668 |
|
|
|
1,654,283 |
|
|
|
6,146,650 |
|
|
|
6,543,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
|
153,623 |
|
|
|
16,702 |
|
|
|
(484,042 |
) |
|
|
276,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
230 |
|
|
|
3,178 |
|
|
|
20,185 |
|
|
|
3,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax provision |
|
|
153,853 |
|
|
|
19,880 |
|
|
|
(463,857 |
) |
|
|
279,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit) |
|
|
(4,386 |
) |
|
|
(3,508 |
) |
|
|
1,740 |
|
|
|
(26,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
158,239 |
|
|
$ |
23,388 |
|
|
$ |
(465,597 |
) |
|
$ |
305,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
0.00 |
|
|
$ |
(0.06 |
) |
|
$ |
0.04 |
|
Diluted |
|
$ |
0.02 |
|
|
$ |
0.00 |
|
|
$ |
(0.06 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,404,831 |
|
|
|
7,404,831 |
|
|
|
7,404,831 |
|
|
|
7,401,030 |
|
Diluted |
|
|
7,404,831 |
|
|
|
7,407,388 |
|
|
|
7,404,831 |
|
|
|
7,407,827 |
|
*As adjusted for change in accounting policy
CONTACT: |
Michael J. Koss |
|
|
Chairman &
CEO |
|
|
(414)
964-5000 |
|
|
mjkoss@koss.com |
|
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