Koss Corp. Releases Third Quarter Results
Koss Corporation (NASDAQ: KOSS) reported a 16.7% decrease in third-quarter sales, totaling $3,987,452 compared to $4,789,441 a year prior. The net loss for the quarter expanded to $474,168, versus $97,373 last year, resulting in a loss per share of $0.06. Despite a 1.7% decline in sales for the nine-month period, net income rose to $161,651 from a loss of $623,835. The company noted a shift from mass retail to direct-to-consumer and distributor channels, contributing to improved gross margins. Freight service disruptions were cited as a key factor in reduced sales.
- Net income for the nine months rose to $161,651 from a loss of $623,835 last year.
- Gross margins are improving due to the shift in sales channels, favoring higher-margin sales.
- Third-quarter sales fell by 16.7% to $3,987,452.
- Net loss for the quarter increased to $474,168 from $97,373 in the previous year.
- Loss per share expanded to $0.06 from $0.01 year-over-year.
MILWAUKEE, May 12, 2021 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high-fidelity headphone company, has reported its third quarter results for the quarter ended March 31, 2021.
Sales for the third quarter were
Sales for the nine months ended March 31, 2021, decreased
"Net sales in the first nine months had a different composition than last year. We saw a shift to US distributors, European distributors and domestic direct to consumer sales and a sharp decline in US mass retail," Michael J. Koss, Chairman and CEO, said today. "The business has shifted away from a concentration in mass market retailers to more consumer direct, specialty and distributor based channels. The net decline in the quarter's sales revenue can largely be attributed to the sporadic service disruptions of freight carriers."
"Gross margins are improving with the shift in sales," Koss explained. "Domestic mass mart retailers typically yield lower gross margins than the other channels. The net loss in the quarter included some unusual non-recurring items that increased administrative costs."
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 CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| March 31 | March 31 | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net sales | $ | 3,987,452 | $ | 4,789,441 | $ | 14,125,537 | $ | 14,362,862 | |||||||
| Cost of goods sold | 2,569,900 | 3,199,665 | 9,453,860 | 10,061,544 | |||||||||||
| Gross profit | 1,417,552 | 1,589,776 | 4,671,677 | 4,301,318 | |||||||||||
| Selling, general and administrative expenses | 2,271,615 | 1,687,676 | 5,393,211 | 4,938,983 | |||||||||||
| (Loss) income from operations | (854,063 | ) | (97,900 | ) | (721,534 | ) | (637,665 | ) | |||||||
| Other income | 378,805 | — | 885,505 | — | |||||||||||
| Interest income | 1,139 | 6,631 | 1,748 | 19,955 | |||||||||||
| (Loss) income before income tax provision | (474,119 | ) | (91,269 | ) | 165,719 | (617,710 | ) | ||||||||
| Income tax provision | 49 | 6,104 | 4,068 | 6,125 | |||||||||||
| Net (loss) income | $ | (474,168 | ) | $ | (97,373 | ) | $ | 161,651 | $ | (623,835 | ) | ||||
| (Loss) income per common share: | |||||||||||||||
| Basic | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.08 | ) | ||||
| Diluted | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.08 | ) | ||||
| Weighted-average number of shares: | |||||||||||||||
| Basic | 8,100,730 | 7,404,831 | 7,633,722 | 7,404,831 | |||||||||||
| Diluted | 8,100,730 | 7,404,831 | 9,188,002 | 7,404,831 | |||||||||||
| CONTACT: | Michael J. Koss |
| Chairman & CEO | |
| (414) 964-5000 | |
| mjkoss@koss.com |
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