Koss Corporation Reports Profitable Second Quarter Results

Core Insights - Koss Corporation reported a net sales increase of 5.9% for the second quarter ended December 31, 2024, reaching $3,557,086 compared to $3,360,124 in the same period last year [2] - The company achieved a net income of $94,142 for the second quarter, a significant turnaround from a net loss of $269,153 in the prior year [2] - For the six months ended December 31, 2024, net sales were $6,758,954, a slight increase of 0.4% from $6,734,062 in the same period last year, while the net loss improved to $325,393 from $526,762 [3] Financial Performance - Gross margins increased to 38.1% for the first half of the current fiscal year, up from 32.3% in the prior year, driven by higher direct-to-consumer sales and new product sales to Europe [4] - Selling, general and administrative expenses for the second quarter were $1,546,741, slightly down from $1,584,523 in the previous year [7] - The company reported a loss from operations of $141,784 for the second quarter, an improvement from a loss of $476,083 in the same period last year [7] Sales and Market Dynamics - Sales to the two largest export distributors significantly contributed to the sales increase, with new product sales exceeding expectations and surpassing prior year sales to the European market by over 100% [4] - Increased direct-to-consumer sales and a significant custom order from a new domestic customer also contributed to growth, although these gains were partially offset by lower sales to the education market and U.S. domestic distributors [4] - The company experienced slight increases in freight costs and anticipates further rises, indicating a need to monitor supply chain dynamics closely [4]