Koss Corporation Releases Second Quarter Earnings
27 January 2017 - 9:15AM
Koss Corporation (NASDAQ:KOSS), the U.S. based high-fidelity
headphone company, has reported its second quarter results for the
quarter ended December 31, 2016.
"It was a difficult quarter with softening of
sales to Scandinavia and Asia as well as certain European markets.
The declines were partially offset by strong sales in the export
OEM business as well as improved sales in the U.S.," Michael J.
Koss, Chairman and CEO, told employees here today. "Earnings
were negatively impacted by this change in sales mix."
Sales for the second quarter were $6,687,797,
which is a 7.5% decrease from sales of $7,229,341 for the same
three month period one year ago. The three month net income
was $140,112, compared to $386,632 for the second quarter last
year. Diluted and basic income per common share for the
quarter was $0.02 compared to income per common share of $0.05 for
the three month period one year ago.
In the first six months, export OEM sales helped
drive increased export sales overall despite the weakness in
Scandinavia and Asia. Distributor sales in other countries
such as Paraguay, Ukraine, Russia and Japan along with continued
strength in the Czech Republic also contributed to the sales
increase. Domestic sales were up due to strong sales to
distributors and to on-line retail.
Sales for the six months ended December 31,
2016, increased by 2.2% to $13,036,503 compared with $12,760,603
for the same six month period a year ago. Six month net
income was $224,323 compared to $285,828 for the same six months
last year. Diluted and basic income per common share was
$0.03 compared with $0.04 for the same six month period a year
ago.
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 |
|
Six Months Ended |
|
|
December 31 |
|
December 31 |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net sales |
|
$ |
6,687,797 |
|
|
$ |
7,229,341 |
|
|
$ |
13,036,503 |
|
|
$ |
12,760,603 |
|
Cost of goods sold |
|
4,481,086 |
|
|
4,566,518 |
|
|
8,887,533 |
|
|
8,451,445 |
|
Gross profit |
|
2,206,711 |
|
|
2,662,823 |
|
|
4,148,970 |
|
|
4,309,158 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
1,987,391 |
|
|
1,989,114 |
|
|
3,763,162 |
|
|
3,754,860 |
|
Unauthorized
transaction related (recoveries) costs, net |
|
(3,404 |
) |
|
37,475 |
|
|
34,096 |
|
|
74,950 |
|
Interest expense |
|
118 |
|
|
757 |
|
|
964 |
|
|
6,075 |
|
Income
before income tax provision |
|
222,606 |
|
|
635,477 |
|
|
350,748 |
|
|
473,273 |
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
82,494 |
|
|
248,845 |
|
|
126,425 |
|
|
187,445 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
140,112 |
|
|
$ |
386,632 |
|
|
$ |
224,323 |
|
|
$ |
285,828 |
|
|
|
|
|
|
|
|
|
|
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.04 |
|
Diluted |
|
$ |
0.02 |
|
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
Michael J. Koss
Chairman & CEO
(414) 964-5000
mjkoss@koss.com
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