Koss Corporation Releases First Quarter Results
Koss (NASDAQ: KOSS) reported Q1 FY2025 results with net sales of $3,201,868, down 5.1% from $3,373,938 in Q1 FY2024. The company recorded a net loss of $419,535 ($0.05 per share), compared to a loss of $257,609 ($0.03 per share) in the prior year. Despite lower domestic distributor sales, European distributor sales increased by over 30%, driven by the launch of Porta Pro Wireless 2.0. Gross margins improved to 36.6% from 31.6%, benefiting from favorable product mix and higher Direct-to-Consumer sales. The company noted concerns about increasing freight rates and port congestion affecting supply chain.
Koss (NASDAQ: KOSS) ha riportato i risultati del Q1 FY2025 con vendite nette di $3.201.868, in calo del 5,1% rispetto ai $3.373.938 del Q1 FY2024. L'azienda ha registrato una perdita netta di $419.535 ($0,05 per azione), rispetto a una perdita di $257.609 ($0,03 per azione) dell'anno precedente. Nonostante il calo delle vendite dei distributori nazionali, le vendite dei distributori europei sono aumentate di oltre il 30%, grazie al lancio del Porta Pro Wireless 2.0. I margini lordi sono migliorati al 36,6% dal 31,6%, beneficiando di un mix di prodotti favorevole e di un incremento delle vendite Direct-to-Consumer. L'azienda ha espresso preoccupazioni riguardo all'aumento delle tariffe di spedizione e alla congestione nei porti che influiscono sulla catena di approvvigionamento.
Koss (NASDAQ: KOSS) reportó los resultados del Q1 FY2025 con ventas netas de $3,201,868, lo que representa una caída del 5.1% respecto a los $3,373,938 del Q1 FY2024. La compañía registró una pérdida neta de $419,535 ($0.05 por acción), en comparación con una pérdida de $257,609 ($0.03 por acción) el año anterior. A pesar de la disminución en las ventas de distribuidores nacionales, las ventas de distribuidores europeos aumentaron más del 30%, impulsadas por el lanzamiento del Porta Pro Wireless 2.0. Los márgenes brutos mejoraron al 36.6% respecto al 31.6%, beneficiándose de una mezcla de productos favorable y de mayores ventas Direct-to-Consumer. La empresa destacó preocupaciones sobre el aumento de las tarifas de flete y la congestión en los puertos que afectan la cadena de suministro.
Koss (NASDAQ: KOSS)는 FY2025 1분기 실적을 보고하며 순매출이 $3,201,868로, FY2024 1분기의 $3,373,938에 비해 5.1% 감소했다고 밝혔습니다. 회사는 $419,535 ($0.05 주당)의 순손실을 기록했으며, 이는 전년도 $257,609 ($0.03 주당)의 손실과 비교됩니다. 국내 유통업체 매출이 감소했지만, 유럽 유통업체 매출이 30% 이상 증가했으며, 이는 Porta Pro Wireless 2.0 출시의 영향을 받았습니다. 총 마진은 31.6%에서 36.6%로 개선되었으며, 이는 유리한 제품 믹스와 증가한 소비자 직접 판매 덕분입니다. 회사는 증가하는 화물 요금과 항구의 혼잡이 공급망에 미치는 영향을 우려하고 있다고 언급했습니다.
Koss (NASDAQ: KOSS) a annoncé les résultats du premier trimestre FY2025 avec des ventes nettes de 3 201 868 $, en baisse de 5,1 % par rapport aux 3 373 938 $ du premier trimestre FY2024. L'entreprise a enregistré une perte nette de 419 535 $ (0,05 $ par action), contre une perte de 257 609 $ (0,03 $ par action) l'année précédente. Malgré une baisse des ventes des distributeurs nationaux, les ventes des distributeurs européens ont augmenté de plus de 30 %, grâce au lancement du Porta Pro Wireless 2.0. Les marges brutes se sont améliorées, passant de 31,6 % à 36,6 %, bénéficiant d'un mélange de produits favorable et d'une augmentation des ventes Direct-to-Consumer. L'entreprise a exprimé des inquiétudes concernant l'augmentation des frais de transport et la congestion portuaire affectant la chaîne d'approvisionnement.
Koss (NASDAQ: KOSS) hat die Ergebnisse für das erste Quartal FY2025 bekannt gegeben, mit Nettoumsätzen von 3.201.868 $, was einem Rückgang von 5,1 % im Vergleich zu 3.373.938 $ im ersten Quartal FY2024 entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 419.535 $ (0,05 $ pro Aktie), im Vergleich zu einem Verlust von 257.609 $ (0,03 $ pro Aktie) im Vorjahr. Trotz eines Rückgangs beim Umsatz der inländischen Vertriebsstellen stiegen die Umsätze bei den europäischen Vertriebsstellen um über 30 %, angetrieben durch die Einführung des Porta Pro Wireless 2.0. Die Bruttomargen verbesserten sich von 31,6 % auf 36,6 %, was von einer günstigen Produktmischung und höheren Direktvertriebsumsätzen profitierte. Das Unternehmen äußerte Bedenken hinsichtlich steigender Frachtkosten und Hafenüberlastungen, die die Lieferkette beeinträchtigen.
- European distributor sales increased by over 30%
- Gross margins improved to 36.6% from 31.6%
- Direct-to-Consumer sales increased with record-setting Amazon sales
- Net sales decreased 5.1% to $3.2M
- Net loss widened to $419,535 from $257,609
- Loss per share increased to $0.05 from $0.03
- Write-off of older excess inventory in Q1 FY2025
- Rising freight rates and port congestion issues
Insights
The Q1 FY2025 results reveal concerning trends for Koss Net sales declined by
The bright spots include
The mixed performance across distribution channels highlights Koss's evolving market strategy. The success in DTC and European markets demonstrates strong consumer demand for premium products like the Porta Pro Wireless 2.0. However, declining domestic distributor and education sector sales suggest market share challenges in traditional channels.
The inventory write-off indicates potential product lifecycle management issues, though the strategic freight cost capitalization shows proactive margin management. The company's holiday season performance will be crucial, particularly given the supply chain constraints and rising transit costs that could impact product availability and pricing power.
MILWAUKEE, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the first quarter ended September 30, 2024.
Net sales for the first quarter ended September 30, 2024 were
“Sales to our domestic distributors were down versus the prior year mainly due to timing of orders. We also saw a decline in sales to our Education and Music customers,” Michael J. Koss, Chairman and CEO, said today. “Backed by the launch of the next generation Porta Pro Wireless 2.0 in September 2024, sales to our two largest European distributors surpassed last year’s levels by over
Koss went on to explain that a favorable mix of customer and product sales drove a gross margins improvement to
“The adverse impact of a write-off in the first quarter of fiscal 2025 of some older, excess inventory was partially mitigated by the capitalization of freight costs into inventory for product purchases for the coming season,” Koss continued. “We saw a slight increase in freight rates, along with extended lead times related to port congestion, throughout the first quarter of fiscal year 2025.” Koss also pointed out that the Company expects transit rate increases to continue into the next quarter. “We continue to monitor potential disruptions in the supply chain and will react as necessary to ensure adequate inventory levels in advance of the upcoming holiday season,” Koss said.
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 public health events, such as pandemics, 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 | |||||||
| September 30 | |||||||
| 2024 | 2023 | ||||||
| Net sales | $ | 3,201,868 | $ | 3,373,938 | |||
| Cost of goods sold | 2,028,942 | 2,306,248 | |||||
| Gross profit | 1,172,926 | 1,067,690 | |||||
| Selling, general and administrative expenses | 1,810,059 | 1,536,279 | |||||
| Loss from operations | (637,133 | ) | (468,589 | ) | |||
| Interest income | 220,358 | 212,859 | |||||
| Loss before income tax provision | (416,775 | ) | (255,730 | ) | |||
| Income tax provision | 2,760 | 1,879 | |||||
| Net loss | $ | (419,535 | ) | $ | (257,609 | ) | |
| Loss per common share: | |||||||
| Basic | $ | (0.05 | ) | $ | (0.03 | ) | |
| Diluted | $ | (0.05 | ) | $ | (0.03 | ) | |
| Weighted-average number of shares: | |||||||
| Basic | 9,310,002 | 9,234,795 | |||||
| Diluted | 9,310,002 | 9,234,795 | |||||
| CONTACT: | Michael J. Koss Chairman & CEO (414) 964-5000 mjkoss@koss.com |
FAQ
What were Koss 's (KOSS) Q1 FY2025 financial results?
How did Koss (KOSS) gross margins perform in Q1 FY2025?
What impact did the Porta Pro Wireless 2.0 launch have on Koss (KOSS) sales in Q1 FY2025?
