Koss revenues down despite improved U.S. sales

Cost controls help narrow third quarter loss

Koss Corp. headquarters at 4129 North Port Washington Ave. in Milwaukee.

Milwaukee-based Koss Corp. saw stronger sales to mass retailers in the United States, but the headphone maker saw sales decline 9.4 percent in the third quarter.

Koss Corp. headquarters at 4129 North Port Washington Ave. in Milwaukee.

“Sales were soft in the third quarter as distributors in Europe significantly reduced their orders compared to the same period last year,” said Michael Koss, chairman and chief executive officer.

Revenue decreased from slightly less than $4.8 million to about $4.3 million. Despite the decline, gross profit margins improved from 19.9 percent to 22.3 percent. Selling, general and administrative expenses decreased by nearly 10 percent.

Koss said controlled spending helped reduce the company’s net loss, which improved from $1.1 million to $812,868 in the quarter.

“Controlled spending has also reduced the loss before income tax for the first nine months compared to last year,” Koss said. “But the write-down of deferred tax assets to the new federal statutory rate as well as an increase in the valuation allowance for deferred tax assets in the second quarter drove an increase in tax expense for the nine months ended March 31, 2018. This caused the increased net loss compared to the same nine month period one year ago.”

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

No posts to display