Sales for the third quarter were $3,987,452, which is a 16.7% decrease from sales of $4,789,441 for the same three month period one year ago. The three month net loss was $474,168, compared to a net loss of $97,373 for the third quarter last year. Diluted and basic loss per common share for the quarter was $0.06 compared to a loss per common share of $0.01 for the same three month period one year ago.
Sales for the nine months ended
"Net sales in the first nine months had a different composition than last year. We saw a shift to US distributors, European distributors and domestic direct to consumer sales and a sharp decline in US mass retail,"
"Gross margins are improving with the shift in sales," Koss explained. "Domestic mass mart retailers typically yield lower gross margins than the other channels. The net loss in the quarter included some unusual non-recurring items that increased administrative costs."
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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|Three Months Ended||Nine Months Ended|
|Cost of goods sold||2,569,900||3,199,665||9,453,860||10,061,544|
|Selling, general and administrative expenses||2,271,615||1,687,676||5,393,211||4,938,983|
|(Loss) income from operations||(854,063||)||(97,900||)||(721,534||)||(637,665||)|
|(Loss) income before income tax provision||(474,119||)||(91,269||)||165,719||(617,710||)|
|Income tax provision||49||6,104||4,068||6,125|
|Net (loss) income||$||(474,168||)||$||(97,373||)||$||161,651||$||(623,835||)|
|(Loss) income per common share:|
|Weighted-average number of shares:|
|Chairman & CEO|
Source: Koss Corporation