Koss Corp. Releases Second Quarter Results

Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

MILWAUKEE, Jan. 24, 2019 — Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high-fidelity headphone company, has reported its second quarter results for the quarter ended December 31, 2018.

Sales for the second quarter were $5,411,227, which is an 8.1% decrease from sales of $5,890,861 for the same three month period one year ago.  The three month net income was $134,121, compared to a net loss of $2,940,593 for the second quarter last year.  Diluted and basic income per common share for the quarter was $0.02 compared to diluted and basic loss per common share of $0.40 for the three month period one year ago.

Sales for the six months ended December 31, 2018, decreased 6.5% from $11,974,916 in the same period last year to $11,196,066 in the current year. The six month net income was $201,532 compared to a net loss of $2,918,624 for the same period last year. Diluted and basic income per common share was $0.03 for the six months ended December 31, 2018 compared to a loss per common share of $0.40 for the same six month period one year ago.

“Changes in product promotion at a mass retail customer and declines at certain domestic distributors caused the decline in sales,” Michael J. Koss, Chairman and CEO, said today.  “Fortunately, we began to see some continued strength in export sales to help offset the domestic declines.  New products, especially wireless products, were critical to the increased export sales.  Net income improvements reflect spending reductions related to the lower sales volumes.”

“The losses last year in the quarter and first six months reflected the new tax law and adjustment to the valuation allowance for deferred tax assets,” Mr. Koss explained. “The tax expense last year was approximately $3 million despite having positive income for both the quarter and first six months.”

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.


  Three Months Ended Six Months Ended
  December 31 December 31
  2018 2017 2018 2017
Net sales $5,411,227  $5,890,861  $11,196,066  $11,974,916 
Cost of goods sold 3,748,732  4,013,857  7,702,387  8,414,262 
Gross profit 1,662,495  1,877,004  3,493,679  3,560,654 
Selling, general and administrative expenses 1,530,626  1,800,304  3,263,520  3,448,010 
Unauthorized transaction related costs (recoveries), net (2,252) (1,771) 28,602  (16,180)
Interest expense   2,526    5,218 
Income before income tax provision 134,121  75,945  201,557  123,606 
Income tax provision   3,016,538  25  3,042,230 
Net income (loss) $134,121  $(2,940,593) $201,532  $(2,918,624)
Income (loss) per common share:        
Basic $0.02  $(0.40) $0.03  $(0.40)
Diluted $0.02  $(0.40) $0.03  $(0.40)
Weighted-average number of shares        
Basic 7,404,831  7,382,706  7,397,291  7,382,706 
Diluted 7,413,391  7,382,706  7,423,517  7,382,706 
CONTACT:     Michael J. Koss
 Chairman & CEO
 (414) 964-5000
 [email protected]

Primary Logo