Koss profit down 50 percent

Milwaukee-based headphone company Koss Corp. reported that its net income for the first quarter of its fiscal year was down 50 percent to $280,597, or 4 cents per diluted share, compared to $562,859, or 8 cents per diluted share, in the previous fiscal year’s first quarter.
Sales for the quarter were down 13 percent to $8.75 million, compared to $10 million in the previous fiscal year’s first quarter.
"Sales to U.S. retailers continued to be slow along with softness in certain export markets," said Michael J. Koss, president and chief executive officer CEO. "July and August were particularly slow with some signs of growth in the month of September. Our markets are mirroring the economic malaise seen in the general economy both here and in Europe."
Koss said the company continues to invest in new products and technology that are scheduled to be released during this fiscal year.
"We are committed to a new product road map and a series of ongoing promotional initiatives despite the first quarter downturn," he said. "Our new website is just one example of the promotional activities we have been investing in during the last quarter, and our addition of a social media hub to this new site will serve as a centerpiece to our future activities.”
The company will pay a dividend of 6 cents per share on Jan. 16, 2012, to shareholders of record on Dec. 31, 2011.
Koss is still trying to recover from the fallout from the embezzlement by the company’s former vice president of finance, Sujata “Sue” Sachdeva. On Tuesday the company announced a $1 million settlement with shareholders who filed a class action lawsuit against the company a lawsuit related to the embezzlement. Also, the company reached a settlement with the Securities and Exchange Commission in a lawsuit related to the Sachdeva embezzlement.