Koss Posts Higher Q2 Sales

TWICE Staff -- TWICE, 1/21/2011

Milwaukee - Koss reported higher sales but lower net income for its fiscal second quarter, ended Dec. 31, 2010.

Sales for the second quarter were $12.8 million, compared with $12.2 for the same three month period one year ago, a 5 percent increase.

Net income increased to $1.38 million, compared with a loss of $1.84 million for the second quarter last year.

Sales for the six months, ended Dec. 31, 2010, were down by 4 percent to $22.8 million, compared with the same time last year.

Six-month net income rose to $1.94 million, compared with a loss of $3.44 million for the same six months of 2009.

"We noted some very conservative replenishment orders in the U.S. and Europe during the first six months of the fiscal year," Michael J. Koss, president and CEO, said. "We are encouraged by the renewed strength of export shipments in the second quarter and with our solid net income."

Koss went on to note that the quarter softened notably in the U.S. toward the end of the calendar year and speculated that U.S. retailers were watching their inventory very closely. He also noted that the company had sharply reduced its accounts payable balances.

"Overall we are very pleased with our performance," Koss said. "We continue to monitor the retail landscape closely for any shifts in order patterns and the future threat of increased vendor costs, most notably relating to rising energy prices."