Koss Corp. reported fiscal fourth quarter net income of $931,891, or 13 cents per share, down from $1.8 million, or 24 cents per share, a year ago.
The Milwaukee headphone manufacturer’s quarterly net sales increased to $10.9 million from $10.3 million a year earlier.
“The fourth quarter had strong sales driven by addition of new customers and products,” said Michael J. Koss, president and chief executive officer. “Export sales continued their improvement and we saw good sales to several new customers. Koss introduced Striva in the fourth quarter but those sales have not yet been significant to the overall results. Net income was down primarily due to new product and marketing expenditures as well as lower recoveries related to the unauthorized transactions.”
Sales for the full fiscal year dropped 9 percent to $37.9 million from $41.5 million.
“Our new product and marketing initiatives are starting to gain some traction resulting in higher sales in the second six months of fiscal year 2012 than in the same period last year. Europe rebounded throughout the second half but still finished behind last year,” Koss said. “The new Striva product line has received many favorable reviews and is just beginning to generate sales…We have several new and exciting products hitting the market. The most exciting of these is Striva, which was announced in late April. The two Striva products are the world’s first Wi-Fi headphones to receive music directly from the internet. The revolution is in the air.”