MILWAUKEE, Aug. 24, 2023 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the fourth quarter and fiscal year ended June 30, 2023.

Sales for the fourth fiscal quarter were $3,104,031, a decline of 27.6% compared to $4,290,013 for the same period in the prior year. The net loss for the three months ended June 30, 2023 was $(262,631) while a net income of $385,595 was reported for the same three-month period a year ago. Both basic and diluted loss per common share for the quarter were ($0.03) compared to basic and diluted income per common share of $0.04 for the three-month period one year ago.

“Sales for the quarter were down primarily in the Education sector and Direct-to-Consumer (“DTC”) market,” Michael J. Koss, Chairman and CEO, said today. “Orders from our education customers were down approximately 70%. DTC sales softened as US consumer spending continued to trend lower in anticipation of coming economic turbulence.”

Sales of $13,099,651 for the year ended June 30, 2023 reflect a decline of $4,605,868, or 26.0%, from sales of $17,705,519 for the prior fiscal year. Net income for the fiscal year ended June 30, 2023 was $8,302,380 compared to $1,268,409 for the previous fiscal year. Basic income per common share for the fiscal year was $0.90 compared to basic income per common share of $0.14 for the previous year. Diluted income per common share was $0.85 for the fiscal year compared to diluted income per common share of $0.13 for the previous year.

“The marked decrease in fiscal year sales to our export markets and certain of our domestic distributors had a significant impact on our overall sales decline,” Koss said. “Consumer pessimism about the state of the economy during the year in the face of rising prices and energy costs affected our sales to Europe and excess stock levels at our domestic distributors contributed to the declines.”

“As a result of a substantial decline in our highest margin domestic distributor sales year over year, our gross margins suffered and were down nearly four percentage points,” Koss continued. “On a more favorable note, pricing actions taken during the year helped mitigate inflationary cost increases in our commodities, packaging material costs, and labor costs during the year. We also saw a nearly 50% decrease in market freight rates as container and routing availability opened up.”

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

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