Koss Corp., the Milwaukee-based high-fidelity headphone company, reported fiscal third quarter net income of $896,715, or 12 cents per share, up from $640,962, or 9 cents per share, in the same period a year ago.
The company’s quarterly sales dipped slightly to $8.2 million from $8.4 million a year earlier.
Sales for the nine months ended March 31, 2012, trended down by 14 percent to $27.0 million from $31.3 million for the same nine-month period a year ago.
“Europe rebounded in the quarter to show a small increase over last year, but it is still behind last year through the nine months. It was great to see the increase in activity and we hope it will carry into our fourth quarter,” said Michael J. Koss, president and chief executive officer. “We continued to see lower than expected orders from several major U.S. retailers which contributed to the small decline in this quarter compared to last year. The additions of new customers and products has helped to offset the impact from these U.S. retailers.”
Koss said the company has continued to be negatively impacted by higher costs from suppliers in China but has been able to partially offset the impact through alternate suppliers and pricing. The costs have hurt margins this year.
“We saw increased activity late in the quarter,” Koss said. “Right now we have a lot of new and exciting products hitting the market. The most exciting of these is Striva, which was announced earlier this week. 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.”
The company will pay a dividend of 6 cents per share on July 16 to shareholders of record on June 29.
