MILWAUKEE, Oct.  26, 2023  (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the "Company"), the U.S. based high-fidelity headphone company, has reported its results for the first quarter ended September 30, 2023.

Sales for the first quarter ended September 30, 2023 were $3,373,938 compared to $3,364,129 for the same period in the prior year, an increase of $9,809, or 0.3%. The net loss for the three months ended September 30, 2023 was $257,609 compared to net income of $9,944,743 for the first quarter of the prior year. Basic and diluted loss per common share for the first quarter of fiscal year 2024 was $0.03 compared to basic income per common share of $1.09 and diluted income per common share of $1.01 for the same three-month period one year ago.

"Orders from two distributors in Europe signaled a positive change particularly in light of the ongoing war in eastern Europe," Michael J. Koss, Chairman and CEO, said today. "Unfortunately, a reduction in consumer confidence, leading to a slowdown in spending, resulted in a drop in our Direct-to-Consumer ("DTC") sales, nearly negating the increase in export sales. We also experienced a decline in sales to certain domestic distributors due to continued overstocked inventory levels of non-Koss product at these distributors."

"Gross margins for the first three months of the current fiscal year were down versus the same period in the prior year," Koss continued. "The less favorable customer mix of sales, with a lower volume of higher margin DTC and domestic distributor sales, drove the decline in margins. The continued sell through of inventory that was shipped from suppliers at higher freight rates also adversely impacted the gross margins. The favorability in fixed manufacturing expenses for the three months ended September 30, 2023 due to cost savings initiatives provided some positive impact compared to the same period in the prior year. Freight rates are expected to make a slow rise during the next quarter due to the current labor landscape, the recent settlement of threatened carrier strikes and labor disputes, and rising energy prices. The Company continues to monitor the supply chain environment."

About Koss Corporation

Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and wireless headphones.