Koss Supplies Headsets for Telemedicine and "Work From Home" in Tough Q3
Rhea-AI Summary
Koss Corporation (NASDAQ: KOSS) reported a 1.5% decline in third-quarter sales to $4,789,441, down from $4,860,247 last year. The company experienced a net loss of $97,373, compared to net income of $137,880 in Q3 2019. Loss per share for the quarter was $0.01, compared to earnings of $0.02 per share last year. For the nine months ending March 31, revenues fell 10.5% to $14,362,862, with a net loss of $623,835. The pandemic heavily impacted export customers and supply chain operations, according to CEO Michael J. Koss.
Positive
- Communications products gained significant traction amid increased telecommuting due to COVID-19.
Negative
- Sales decreased 1.5% year-over-year for the third quarter.
- Net loss of $97,373 compared to previous net income.
- Overall sales for the nine months down 10.5% year-over-year.
- Supply chain struggling to return to full capacity due to COVID-19.
News Market Reaction – KOSS
In the trading session that priced this news, KOSS declined 8.94%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MILWAUKEE, Wisc., May 07, 2020 (GLOBE NEWSWIRE) -- 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
“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
Sales for the nine months ended March 31, 2020, decreased
“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 CORPORATION
CONDENSED 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 | ||||