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Koss Corporation Releases Fourth Quarter and Full Year Results

Koss Corporation
Koss Corporation

MILWAUKEE, Aug. 24, 2023 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the fourth quarter and fiscal year ended June 30, 2023.

Sales for the fourth fiscal quarter were $3,104,031, a decline of 27.6% compared to $4,290,013 for the same period in the prior year. The net loss for the three months ended June 30, 2023 was $(262,631) while a net income of $385,595 was reported for the same three-month period a year ago. Both basic and diluted loss per common share for the quarter were ($0.03) compared to basic and diluted income per common share of $0.04 for the three-month period one year ago.

“Sales for the quarter were down primarily in the Education sector and Direct-to-Consumer (“DTC”) market,” Michael J. Koss, Chairman and CEO, said today. “Orders from our education customers were down approximately 70%. DTC sales softened as US consumer spending continued to trend lower in anticipation of coming economic turbulence.”

Sales of $13,099,651 for the year ended June 30, 2023 reflect a decline of $4,605,868, or 26.0%, from sales of $17,705,519 for the prior fiscal year. Net income for the fiscal year ended June 30, 2023 was $8,302,380 compared to $1,268,409 for the previous fiscal year. Basic income per common share for the fiscal year was $0.90 compared to basic income per common share of $0.14 for the previous year. Diluted income per common share was $0.85 for the fiscal year compared to diluted income per common share of $0.13 for the previous year.

“The marked decrease in fiscal year sales to our export markets and certain of our domestic distributors had a significant impact on our overall sales decline,” Koss said. “Consumer pessimism about the state of the economy during the year in the face of rising prices and energy costs affected our sales to Europe and excess stock levels at our domestic distributors contributed to the declines.”

“As a result of a substantial decline in our highest margin domestic distributor sales year over year, our gross margins suffered and were down nearly four percentage points,” Koss continued. “On a more favorable note, pricing actions taken during the year helped mitigate inflationary cost increases in our commodities, packaging material costs, and labor costs during the year. We also saw a nearly 50% decrease in market freight rates as container and routing availability opened up.”

About Koss Corporation

Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and wireless headphones.

Forward-Looking Statements

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, the impacts of the COVID-19 pandemic, geopolitical instability and war, 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 CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

June 30,

 

June 30,

 

2023

 

2022

 

2023

 

2022

Net sales

$

3,104,031

 

 

$

4,290,013

 

 

$

13,099,651

 

 

$

17,705,519

 

Cost of goods sold

 

2,251,681

 

 

 

2,669,130

 

 

 

8,642,237

 

 

 

10,989,889

 

Gross profit

 

852,350

 

 

 

1,620,883

 

 

 

4,457,414

 

 

 

6,715,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

1,467,861

 

 

 

1,237,086

 

 

 

29,358,466

 

 

 

5,813,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

(615,511

)

 

 

383,797

 

 

 

(24,901,052

)

 

 

902,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

-

 

 

 

-

 

 

 

33,000,000

 

 

 

362,390

 

Interest income

 

206,328

 

 

 

3,677

 

 

 

520,809

 

 

 

11,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision

 

(409,183

)

 

 

387,474

 

 

 

8,619,757

 

 

 

1,275,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

(146,552

)

 

 

1,879

 

 

 

317,377

 

 

 

7,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

(262,631

)

 

$

385,595

 

 

$

8,302,380

 

 

$

1,268,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.03

)

 

$

0.04

 

 

$

0.90

 

 

$

0.14

 

Diluted

$

(0.03

)

 

$

0.04

 

 

$

0.85

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

9,222,180

 

 

 

9,147,795

 

 

 

9,192,799

 

 

 

9,070,277

 

Diluted

 

9,222,180

 

 

 

9,786,640

 

 

 

9,753,760

 

 

 

9,985,662

 


CONTACT:

Michael J. Koss

 

Chairman & CEO

 

(414) 964-5000

 

mjkoss@koss.com