Milwaukee-based Koss Corp. ended its fiscal year with a nearly $1 million net loss and declining revenue despite seeing improved sales in the United States.
“We have seen improvements in our on-line channels especially in the U.S. However, this is not enough to offset the continued weakness in Asia and Scandinavia,” said Michael Koss, Koss chairman and chief executive officer. “Our focus continues to be increasing sales through our various channels and driving new products to market.”
The company reported a net loss of $963,636 for the year after posting a nearly $1.4 million profit last year. The results equated to a 13 cent per diluted share loss, compared to earnings of 19 cents per share last year. Revenue was down 7.5 percent to $24.1 million, but the company’s cost of goods sold was actually up by roughly $100,000.
Koss was able to reduce selling, general and administrative expenses by about $360,000 to $7.6 million. The 2017 results, however, did not have the benefit of nearly $1.3 million in net recoveries last year from Sujata “Sue” Sachdeva’s embezzlement.
The company’s fourth quarter results included a net loss of $70,376, compared to net income of $233,487 during the same period last year. Sales were down by 13.7 percent to $6.2 million.
“Our distributors in Asia and Scandinavia continue to buy at levels below last year as they work to reduce their inventory. The declines in foreign distribution were partially offset by improved sales in the U.S. through on-line retail, mass retail and certain distributors,” Koss said.
