Koss Sales and Profits Improve as Exports to Europe Strengthen

Thu Apr 26, 2012 5:15pm EDT

* Reuters is not responsible for the content in this press release.

  MILWAUKEE, WI, Apr 26 (Marketwire) -- 
Koss Corporation (NASDAQ: KOSS), the U.S. based high-fidelity headphone
company, has reported its results for the quarter ended March 31, 2012.
Sales for the third quarter were $8,232,526 compared to $8,419,663 for
the same three month period one year ago, a 2% decrease. Net income
increased to $896,715, compared to $640,962 for the third quarter last
year. Diluted income per common share was $0.12 compared with $0.09 one
year ago.

    Sales for the nine months ended March 31, 2012 trended down by 14% to
$26,978,082 compared with $31,252,603 for the same nine month period a
year ago. Nine month net income declined to $2,008,524 compared to
$2,585,934 for the same nine months last year. Diluted income per common
share was $0.27 compared with $0.35 one year ago.

    "Europe rebounded in the quarter to show a small increase over last year,
but it is still behind last year through the nine months. It was great to
see the increase in activity and we hope it will carry into our fourth
quarter," Michael J. Koss, President and CEO said here today. "We
continued to see lower than expected orders from several major U.S.
retailers which contributed to the small decline in this quarter compared
to last year. The additions of new customers and products has helped to
offset the impact from these U.S. retailers."

    Koss went on to note that the Company has continued to be negatively
impacted by higher costs from suppliers in China but has been able to
partially offset the impact through alternate suppliers and pricing.
These costs have hurt margins this year.

    "We saw increased activity late in the quarter," Koss said. "Right now we
have a lot of new and exciting products hitting the market. The most
exciting of these is Striva, which was announced earlier this week. The
two Striva products are the world's first Wi-Fi headphones to receive
music directly from the internet. The revolution is in the air."

    The Company will pay a dividend of $0.06 cents per share on July 16,
2012, to shareholders of record on June 29, 2012.

    Koss Corporation markets a complete line of high-fidelity headphones,
speaker-phones, 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
"may," "will," "should," "forecasts," "expects," "plans," "anticipates,"
"believes," "estimates," "predicts," "potential," or "continue" or the
negative of such terms and other comparable terminology. These statements
are only predictions. 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. 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 AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)

                                Three Months              Nine Months
                           ----------------------  ------------------------ 
Period Ended March 31,        2012        2011         2012         2011
                           ----------  ----------  -----------  ----------- 

Net sales                  $8,232,526  $8,419,663  $26,978,082  $31,252,603 
Cost of goods sold          5,080,992   5,026,193   16,698,801   18,286,561 
                           ----------  ----------  -----------  ----------- 
Gross profit                3,151,534   3,393,470   10,279,281   12,966,042 
                           ----------  ----------  -----------  ----------- 
Operating Expenses:
  Selling, general and
   administrative expenses  3,017,502   2,705,534    8,827,422    8,398,963 
  Unauthorized transaction
   related costs and
   (recoveries), net         (617,103)   (376,544)  (1,137,036)      94,640 
                           ----------  ----------  -----------  ----------- 
    Total Operating
     Expenses               2,400,399   2,328,990    7,690,386    8,493,603 
                           ----------  ----------  -----------  ----------- 
    Income from operations    751,135   1,064,480    2,588,895    4,472,439 
Other Income (Expense):
  Interest income              29,322      13,192       29,322       13,216 
  Interest expense            212,699    (109,725)     148,161     (321,733)
                           ----------  ----------  -----------  ----------- 
    Total Other Income
     (Expense), net           242,021     (96,533)     177,483     (308,517)
                           ----------  ----------  -----------  ----------- 
Income before income tax
 provision                    993,156     967,947    2,766,378    4,163,922 
Income tax provision           96,441     326,985      757,854    1,577,988 
                           ----------  ----------  -----------  ----------- 
      Net income           $  896,715  $  640,962  $ 2,008,524  $ 2,585,934 
                           ----------  ----------  -----------  ----------- 
Income per common share:
      Basic                $     0.12  $     0.09  $      0.27  $      0.35 
      Diluted              $     0.12  $     0.09  $      0.27  $      0.35 
                           ----------  ----------  -----------  ----------- 
Dividends declared per
 common share              $     0.06  $     0.06  $      0.18  $      0.18 
                           ----------  ----------  -----------  ----------- 


    


CONTACT: 
Michael J. Koss
President & CEO
(414) 964-5000
mjkoss@koss.com 

Copyright 2012, Marketwire, All rights reserved.

-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.