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Koss Corporation Releases Second Quarter Results

Koss Corporation
Koss Corporation

MILWAUKEE, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the second quarter ended December 31, 2023.

Sales for the three months ended December 31, 2023 were $3,360,124 compared to $3,281,333 for the same period in the prior year, an increase of $78,791, or 2.4%. The net loss for the second quarter ended December 31, 2023 was $269,153 compared to a net loss of $1,146,190 for the same three-month period in the prior year. Basic and diluted loss per common share for the quarter was $0.03 compared to basic and diluted loss per common share of $0.12 for the comparable three-month period one year ago.

For the six months ended December 31, 2023, net sales of $6,734,062 showed a slight increase of 1.3% versus sales of $6,645,462 for the six months ended December 31, 2022. The six-month net loss was $526,762 compared to net income of $8,803,532 for the same period last year. Basic and diluted net loss per common share was $0.06 for the six months ended December 31, 2023. This compared to basic and diluted income per common share of $0.96 and $0.90, respectively, for the same six-month period in the prior year.

"Custom headphone orders from a customer in each of our education and OEM markets, coupled with an increase in sales to e-tailers as well as one of our largest domestic distributors, drove the favorability year over year for the first six months of fiscal year 2024,” Michael J. Koss, Chairman and CEO, said today. “Unfortunately, a decline in direct-to-consumer (DTC) sales, behind a slowdown in consumer spending as pandemic savings dwindle and student loan repayments resume, nullified much of the increase. A decline in sales to two of our largest European distributors, due mainly to timing of orders, also offset the domestic market year over year increase.”

“The favorable mix of customer sales resulting from the higher margin custom orders and a lesser volume of lower margin export sales could not offset the decline in gross margins due to a reduction in higher margin DTC sales combined with the adverse impact from the continued sell-through of the Company’s inventory brought in from suppliers at higher freight rates,” Koss continued. “Ongoing cost reductions in fixed manufacturing expenses do, however, continue to provide a positive impact on gross margins. While freight rates remained competitive through the six months ended December 31, 2023, a combination of excess available capacity and expected lower demand due to declining consumer confidence could result in overcapacity in the transportation market. As such, the Company is anticipating an increase in transportation costs in the coming quarter.”

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 “aims,” "anticipates," "believes," "estimates," "expects," "intends," "plans," “thinks,” "may," "will," “shall,” "should," “could,” “would,” "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, inflationary cost environment, supply chain disruption, 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

 

Six Months Ended

 

December 31

 

December 31

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net sales

$

3,360,124

 

 

$

3,281,333

 

 

$

6,734,062

 

 

$

6,645,462

 

Cost of goods sold

 

2,251,684

 

 

 

2,145,769

 

 

 

4,557,932

 

 

 

4,314,074

 

Gross profit

 

1,108,440

 

 

 

1,135,564

 

 

 

2,176,130

 

 

 

2,331,388

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

1,584,523

 

 

 

2,482,688

 

 

 

3,120,802

 

 

 

26,157,905

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) from operations

 

(476,083

)

 

 

(1,347,124

)

 

 

(944,672

)

 

 

(23,826,517

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

 

 

 

33,000,000

 

Interest income

 

208,809

 

 

 

97,832

 

 

 

421,668

 

 

 

124,888

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income tax provision (benefit)

 

(267,274

)

 

 

(1,249,292

)

 

 

(523,004

)

 

 

9,298,371

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

1,879

 

 

 

(103,102

)

 

 

3,758

 

 

 

494,839

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(269,153

)

 

$

(1,146,190

)

 

$

(526,762

)

 

$

8,803,532

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.03

)

 

$

(0.12

)

 

$

(0.06

)

 

$

0.96

 

Diluted

$

(0.03

)

 

$

(0.12

)

 

$

(0.06

)

 

$

0.90

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

9,241,208

 

 

 

9,186,208

 

 

 

9,238,002

 

 

 

9,171,746

 

Diluted

 

9,241,208

 

 

 

9,186,208

 

 

 

9,238,002

 

 

 

9,817,398

 

 


 

 

CONTACT:

Michael J. Koss

 

Chairman & CEO

 

(414) 964-5000

 

mjkoss@koss.com