Koss Supplies Headsets for Telemedicine and "Work From Home" in Tough Q3
08 May 2020 - 7:15AM
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, 2020.
Sales for the third quarter were
$4,789,441, which is a 1.5% decrease from sales of
$4,860,247 for the same three month period one year ago. The
three month net loss was $97,373, compared to net
income of $137,880 for the third quarter last year.
Diluted and basic loss per common share for the quarter was
$0.01 compared to diluted and basic income per common
share of $0.02 for the three month period one year ago.
“We were proud to do our part to help
doctors on the front lines and US workers and students
telecommuting from home," Michael J. Koss, Chairman and CEO, said
today. "Communications products have traditionally been a
relatively small segment of our revenue but were significant
in the latest quarter. We are doing everything we can to offer
creative solutions to Americans working within “social distancing”
guidelines that will likely continue in some form." Koss went
on to explain that the COVID-19 pandemic had a significant impact
on its Export Customers in the quarter and that its manufacturing
supply chain was still struggling to return to 100% of
capacity.
Sales for the nine months ended March 31, 2020,
decreased 10.5% from $16,056,313 in the same period last
year to $14,362,862 in the current year. The nine month
net loss was $623,835 compared to net income of
$282,599 for the same period last year. Diluted and basic
loss per common share was $0.08 for the nine months
ended March 31, 2020 compared to income per common share of
$0.04 for the same nine month period one year ago.
“The lack of travel restrictions by EU member
countries seems to have exacerbated the pandemic in Europe and
devastated daily life in several export markets,” Koss said. “Our
hearts go out to our partners around the world that have been
so terribly affected by the pandemic. We stand ready to help them
in any way that we can.”
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
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
March 31 |
|
|
March 31 |
|
|
|
2020 |
|
|
2019* |
|
|
2020 |
|
|
2019* |
|
Net sales |
|
$ |
4,789,441 |
|
|
$ |
4,860,247 |
|
|
$ |
14,362,862 |
|
|
$ |
16,056,313 |
|
Cost of goods sold |
|
|
3,199,665 |
|
|
|
3,205,039 |
|
|
|
10,061,544 |
|
|
|
10,907,425 |
|
Gross profit |
|
|
1,589,776 |
|
|
|
1,655,208 |
|
|
|
4,301,318 |
|
|
|
5,148,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
1,687,676 |
|
|
|
1,540,348 |
|
|
|
4,938,983 |
|
|
|
4,889,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
|
(97,900 |
) |
|
|
114,860 |
|
|
|
(637,665 |
) |
|
|
259,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
6,631 |
|
|
|
- |
|
|
|
19,955 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax provision |
|
|
(91,269 |
) |
|
|
114,860 |
|
|
|
(617,710 |
) |
|
|
259,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
6,104 |
|
|
|
(23,020 |
) |
|
|
6,125 |
|
|
|
(22,995 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(97,373 |
) |
|
$ |
137,880 |
|
|
$ |
(623,835 |
) |
|
$ |
282,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.04 |
|
Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,404,831 |
|
|
|
7,404,831 |
|
|
|
7,404,831 |
|
|
|
7,399,768 |
|
Diluted |
|
|
7,404,831 |
|
|
|
7,405,425 |
|
|
|
7,404,831 |
|
|
|
7,408,110 |
|
*As adjusted for change in accounting principle
|
|
|
|
|
CONTACT: |
|
|
|
Michael J. Koss |
|
|
|
|
Chairman & CEO |
|
|
|
|
(414) 964-5000 |
|
|
|
|
mjkoss@koss.com |
|
|
|
|
|
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