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
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.”