Koss Corp. Releases First Quarter Results
October 25 2017 - 5:15PM
Koss Corporation (NASDAQ:KOSS), the U.S. based high-fidelity
headphone company, has reported its first quarter results for the
quarter ended September 30, 2017.
Sales for the first quarter were $6,066,630,
which is a 4.44% decrease from sales of $6,348,706 for the same
three month period one year ago. The three month net income
was $17,500, compared to net income of $84,211 for the first
quarter last year. Diluted and basic loss per common share
for the quarter was $0.00 compared to income per common share of
$0.01 for the three month period one year ago.
"In a year that has seen at least nineteen major
retail bankruptcies in the U.S., we were able to grow our U.S. mass
market sales by 33% this quarter compared to last year," Michael J.
Koss Chairman and CEO said today. "Equally exciting has been
an increase in sales to our largest Internet sales partner, while
our direct-to-consumer channel saw a 40% increase compared to last
year."
Koss went on to explain that sales in Europe
experienced an overall decline, but that one major distributor was
beginning to overcome challenges of the strong dollar by posting
increased orders for the first quarter compared with the same
period last year.
"Unfortunately sales to one OEM customer in Asia
accounted for 64% of the decline in total Koss revenue for the
quarter in comparison to the ramp up in new business shipments to
the same customer one year ago." Koss continued, "The shortfall is
related to a previously disclosed pricing adjustment and margin
erosion related to the new product's life-cycle as well as a
decrease in its total unit sales."
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 |
|
|
2017 |
|
2016 |
Net sales |
|
$ |
6,066,630 |
|
|
$ |
6,348,706 |
|
Cost of goods sold |
|
4,392,676 |
|
|
4,406,447 |
|
Gross profit |
|
1,673,954 |
|
|
1,942,259 |
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
1,647,706 |
|
|
1,775,771 |
|
Unauthorized
transaction related (recoveries) costs, net |
|
(14,409 |
) |
|
37,500 |
|
Interest expense |
|
2,692 |
|
|
846 |
|
Income
before income tax provision |
|
37,965 |
|
|
128,142 |
|
|
|
|
|
|
Income tax
provision |
|
20,465 |
|
|
43,931 |
|
|
|
|
|
|
Net
income |
|
$ |
17,500 |
|
|
$ |
84,211 |
|
|
|
|
|
|
Income per common
share: |
|
|
|
|
Basic |
|
$ |
— |
|
|
$ |
0.01 |
|
Diluted |
|
$ |
— |
|
|
$ |
0.01 |
|
CONTACT: |
Michael J. Koss |
|
Chairman & CEO |
|
(414) 964-5000 |
|
mjkoss@koss.com |
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