Koss Corporation Releases First Quarter Results
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Rhea-AI Summary
Koss (NASDAQ: KOSS) reported Q1 FY2025 results with net sales of $3,201,868, down 5.1% from $3,373,938 in Q1 FY2024. The company recorded a net loss of $419,535 ($0.05 per share), compared to a loss of $257,609 ($0.03 per share) in the prior year. Despite lower domestic distributor sales, European distributor sales increased by over 30%, driven by the launch of Porta Pro Wireless 2.0. Gross margins improved to 36.6% from 31.6%, benefiting from favorable product mix and higher Direct-to-Consumer sales. The company noted concerns about increasing freight rates and port congestion affecting supply chain.
Positive
- European distributor sales increased by over 30%
- Gross margins improved to 36.6% from 31.6%
- Direct-to-Consumer sales increased with record-setting Amazon sales
Negative
- Net sales decreased 5.1% to $3.2M
- Net loss widened to $419,535 from $257,609
- Loss per share increased to $0.05 from $0.03
- Write-off of older excess inventory in Q1 FY2025
- Rising freight rates and port congestion issues
Details
News Market Reaction – KOSS
The recorded move for KOSS in the trading session of this news was -1.40%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MILWAUKEE, Oct. 31, 2024 (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, 2024.
Net sales for the first quarter ended September 30, 2024 were
“Sales to our domestic distributors were down versus the prior year mainly due to timing of orders. We also saw a decline in sales to our Education and Music customers,” Michael J. Koss, Chairman and CEO, said today. “Backed by the launch of the next generation Porta Pro Wireless 2.0 in September 2024, sales to our two largest European distributors surpassed last year’s levels by over
Koss went on to explain that a favorable mix of customer and product sales drove a gross margins improvement to
“The adverse impact of a write-off in the first quarter of fiscal 2025 of some older, excess inventory was partially mitigated by the capitalization of freight costs into inventory for product purchases for the coming season,” Koss continued. “We saw a slight increase in freight rates, along with extended lead times related to port congestion, throughout the first quarter of fiscal year 2025.” Koss also pointed out that the Company expects transit rate increases to continue into the next quarter. “We continue to monitor potential disruptions in the supply chain and will react as necessary to ensure adequate inventory levels in advance of the upcoming holiday season,” Koss said.
About Koss Corporation
Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and wireless headphones.
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 public health events, such as pandemics, 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 | |||||||
| 2024 | 2023 | ||||||
| Net sales | $ | 3,201,868 | $ | 3,373,938 | |||
| Cost of goods sold | 2,028,942 | 2,306,248 | |||||
| Gross profit | 1,172,926 | 1,067,690 | |||||
| Selling, general and administrative expenses | 1,810,059 | 1,536,279 | |||||
| Loss from operations | (637,133 | ) | (468,589 | ) | |||
| Interest income | 220,358 | 212,859 | |||||
| Loss before income tax provision | (416,775 | ) | (255,730 | ) | |||
| Income tax provision | 2,760 | 1,879 | |||||
| Net loss | $ | (419,535 | ) | $ | (257,609 | ) | |
| Loss per common share: | |||||||
| Basic | $ | (0.05 | ) | $ | (0.03 | ) | |
| Diluted | $ | (0.05 | ) | $ | (0.03 | ) | |
| Weighted-average number of shares: | |||||||
| Basic | 9,310,002 | 9,234,795 | |||||
| Diluted | 9,310,002 | 9,234,795 | |||||
| CONTACT: | Michael J. Koss Chairman & CEO (414) 964-5000 mjkoss@koss.com |
FAQ
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