Milwaukee-based Koss Corp. reported second quarter net income of $338,688, or 5 cents per share, down from $831,212, or 11 cents per share, in the same period a year ago.
The company’s quarterly sales dipped to $8.6 million from $10.0 million a year earlier.
“European distributors have experienced declining demand from their customer base which translates into lower sales for Koss. Sales to U.S. domestic retailers held up with new customers helping to offset declines in revenue,” said Michael Koss, president and chief executive officer. “The European economy continues to be soft. In addition, certain export orders were disrupted and not shipped at the end of December due to the threatened dockworker strike on the Eastern Seaboard.”
Koss added that over the last several years, the company invested in software development tied to its Striva product line. Those costs are now being amortized, which has increased costs and lowered earnings. The company is expecting to launch several new products based on the technology in the next six to twelve months.