MILWAUKEE, Jan. 26, 2023 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the second quarter ended December 31, 2022.
Sales for the second quarter ended December 31, 2022 were $3,271,931, a decline of 25.9% compared to $4,415,886 for the same period in the prior year. The net loss for the three months was $1,146,879 compared to net income of $578,969 for the second quarter of the prior year. Basic and diluted loss per common share for the quarter was $0.12 compared to basic and diluted income per common share of $0.06 for the same three-month period one year ago.
Sales for the six months ended December 31, 2022 decreased 24.5% from $8,780,953 in the same period last year to $6,626,460 in the current fiscal year. The six-month net income was $8,797,864 compared to net income of $479,610 for the same period last year. Basic income per common share was $0.96 for the six months ended December 31, 2022 and diluted income per common share was $0.90. This compares to basic and diluted income per common share of $0.05 for the same six-month period in the prior year.
“The decline in sales was partially driven by a slowdown in sales to certain of our domestic distributors,” Michael J. Koss, Chairman and CEO, said today. “The weaker demand appears to be due to over-stocked shelves as a result of the bullwhip effect triggered by the pandemic. In addition, sales to our European distributors continue to be impacted by the ongoing conflict between Russia and Ukraine, as well as high energy costs and inflation reducing disposal income.”
“An unfavorable sales mix negatively impacted gross margins for the first six months of the current fiscal year versus the same period in the prior year,” Koss continued. “Lower volumes of higher margin sales, coupled with fixed manufacturing expenses that do not flex with sales volume and the sale of inventory purchased at higher freight rates, contributed to the lower gross margins. The Company continues to monitor the threat of a rail strike and the potential manufacturing and supply chain delays due to the surge of infection since the easing of zero COVID restrictions in China as both situations could have negative repercussions. Legal fees recorded during the second quarter were the main contributor to the net loss for the quarter.”
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
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KOSS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Koss Corporation is engaged in marketing high-fidelity headphones, wireless Bluetooth speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and wireless headphones. The Company operates in the audio/video industry segment of the home entertainment and communication industry through its design, manufacture and sale of stereo headphones and related accessory products. The Companyâs products are sold through United States distributors, international distributors, audio specialty stores, the Internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name as well as private label. The Company also sells products to distributors for resale to school systems, and directly to other manufacturers for inclusion with their own products. The Company has a manufacturing facility in Milwaukee, Wisconsin and uses contract manufacturing facilities in the Peopleâs Republic of China and Taiwan.