Koss Corp. recovers from loss
Milwaukee-based headphone manufacturer Koss Corp. today reported fiscal 2015 second quarter net income of $165,586, or 2 cents per share, compared with a loss of $3.5 million, or 47 cents lost per share, in the second quarter of 2014.
Koss recorded a $4.5 million impairment charge in the second quarter of 2014 related to its STRIVA product line.
Operating income was $315,561, compared with a loss of $5.4 million in the same period a year ago.
Revenue for the second quarter was $7.0 million, up 8 percent from $6.5 million in the second quarter of 2014.
"Given the recent challenges, we are encouraged by the increase in sales for the quarter and the fact that the company reported a profit for both the quarter and the first six months. Sales in certain export markets, especially Scandinavia, increased in the quarter," said Michael Koss, president and chief executive officer. "Sales in Ukraine, Czech Republic and Japan continued to struggle compared to last year."
"We are beginning to experience a turnaround in some markets with encouraging strength in the U.S. market. Last year's promotional load-in transaction with a domestic customer resulted in net sales for the three and six months ended December 31, 2013 of approximately $990,000 and $1,380,000, respectively. Those net sales had to be covered by other customers in the current quarter," Koss said. "Our cost reduction efforts have allowed us to be profitable at the current sales level and to conserve cash. Various cost reduction projects helped to reduce selling, general and administrative expenses by approximately $1.7 million from last year's levels in the first six months of the year."