Koss Corporation Releases First Quarter Results
Koss Corporation (NASDAQ: KOSS) reported first-quarter results for the fiscal year ending September 30, 2022. Sales decreased by 23.2% to $3,354,529, down from $4,365,067 year-over-year. However, net income rose significantly to $9,944,743, compared to a net loss of $99,359 for the previous year. Basic and diluted earnings per share improved to $1.09 and $1.01 respectively. The decline in sales was attributed to tighter inventory management among distributors and a decrease in European sales, although growth in direct-to-consumer sales offset some losses.
- Net income increased to $9,944,743 from a net loss of $99,359 year-over-year.
- Basic income per share rose to $1.09 compared to a loss of $0.01 from the previous year.
- Direct-to-consumer (DTC) sales nearly doubled over the same period last year.
- Sales declined by 23.2% from the previous year, primarily due to reduced shipments to European markets.
- Gross margins were slightly below last year's first quarter due to higher freight costs affecting inventory.
- Potential increased costs from the threat of rail strikes could further erode profitability.
MILWAUKEE, Oct. 28, 2022 (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, 2022.
Sales for the first quarter of the current fiscal year were
“Softness in certain of our domestic distributors as a result of tighter inventory management and diminishing COVID stimulus money, coupled with a marked reduction in sales to Europe, drove the decline in overall sales for the quarter,” Michael J. Koss, Chairman and CEO, said today. “Fortunately gains experienced with other US distributors, which nearly doubled over the same period in the prior year, and appreciable growth in our direct-to-consumer (DTC) business helped to offset some of the decline.”
“Gross margins were slightly below the prior year’s first quarter,” Koss continued. “While the mix of sales was favorable with increased higher margin DTC and other US distribution sales, the impact of working through inventory purchased at higher freight rates negatively affected the margins. The Company did benefit from lower freight rates during the quarter as a result of reduced container demand, however, the renewed threat of rail strikes could result in increased future costs.”
About Koss Corporation
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.
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 | |||||||
| September 30 | |||||||
| 2022 | 2021 | ||||||
| Net sales | $ | 3,354,529 | $ | 4,365,067 | |||
| Cost of goods sold | 2,168,305 | 2,783,230 | |||||
| Gross profit | 1,186,224 | 1,581,837 | |||||
| Selling, general and administrative expenses | 23,670,596 | 1,780,798 | |||||
| (Loss) from operations | (22,484,372 | ) | (198,961 | ) | |||
| Other income | 33,000,000 | 100,000 | |||||
| Interest income | 27,056 | 633 | |||||
| Income (loss) before income tax provision | 10,542,684 | (98,328 | ) | ||||
| Income tax provision | 597,941 | 1,031 | |||||
| Net income (loss) | $ | 9,944,743 | $ | (99,359 | ) | ||
| Income (loss) per common share: | |||||||
| Basic | $ | 1.09 | $ | (0.01 | ) | ||
| Diluted | $ | 1.01 | $ | (0.01 | ) | ||
| Weighted-average number of shares: | |||||||
| Basic | 9,157,284 | 8,843,946 | |||||
| Diluted | 9,849,043 | 8,843,946 | |||||
| CONTACT: | Michael J. Koss |
| Chairman & CEO | |
| (414) 964-5000 | |
| mjkoss@koss.com |
FAQ
What were Koss Corporation's sales for Q1 2022?
How did Koss Corporation's net income change in Q1 2022?
What is the earnings per share for Koss Corporation in Q1 2022?
What factors contributed to the decline in Koss Corporation's sales?
Is Koss Corporation facing any potential risks in the future?
