MILWAUKEE, WI -- (Marketwired) -- 05/07/15 -- Koss Corporation (NASDAQ: KOSS), the U.S. based high-fidelity headphone company, has reported its third quarter results for the quarter ended March 31, 2015.

Sales for the third quarter were $6,001,556 compared to $4,300,373 for the same three month period one year ago, a 39.6% increase. The three month net income was $57,218, compared to a net loss of $25,121 for the third quarter last year. Diluted income per common share for the quarter was $0.01 compared with diluted loss per common share of $0.00 for the same three month period one year ago.

"We experienced increased sales in our domestic markets of approximately $1,613,000 or 66% and an increase of approximately $90,000 or 5% in the export markets. It was nice to see increases in both areas and to finally see the export markets start to show renewed life," Michael J. Koss, President and CEO, told employees here today.

Sales for the nine months ended March 31, 2015 increased by 4.9% to $18,511,192 compared with $17,648,927 for the same nine month period a year ago. Nine month net income was $127,806 compared to a net loss of $3,398,560 for the same nine months last year. Diluted income per common share was $0.02 compared with diluted loss per common share of $0.46 for the same nine month period a year ago.

"We are pleased to see a year-to-date sales increase compared to last year. Coupled with our cost reduction efforts, this has helped us record a tremendous improvement in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from operations," Koss continued. Koss also noted that EBITDA from operations, which excludes unauthorized transaction related costs and recoveries as well as stock-based compensation expense and impairment charges, was $381,436 for the current quarter, compared to a loss of $941,376 for the same quarter last year. For the nine months ended March 31, 2015, EBITDA from operations increased $2,419,987 on a net sales increase of $862,265 for the same nine month period last year.*

* EBITDA from operations is a non-GAAP financial measure for which reconciliation is provided along with the financial statements accompanying this release.

Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth� speakers, computer headsets, telecommunications headsets, active noise canceling headphones, wireless headphones, and compact disc recordings of American Symphony Orchestras on the Koss Classics label.

This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "forecasts," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms and other comparable terminology. These statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual events or results may differ materially. In evaluating forward-looking statements, you should specifically consider various factors that may cause actual results to vary from those contained in the forward-looking statements, such as general economic conditions, in particular, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances or new information. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.

                              KOSS CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)

                              Three Months Ended       Nine Months Ended
                                   March 31                 March 31
                           -----------------------  -----------------------
                               2015        2014         2015        2014
                           ----------- -----------  ----------- -----------
Net sales                  $ 6,001,556 $ 4,300,373  $18,511,192 $17,648,927
Cost of goods sold           3,886,443   3,206,738   12,143,055  12,145,820
Impairment of capitalized
 software, inventory and
 related items                       -           -            -   4,535,747
                           ----------- -----------  ----------- -----------
Gross profit                 2,115,113   1,093,635    6,368,137     967,360
                           ----------- -----------  ----------- -----------

Operating expenses:
  Selling, general and
   administrative expenses   1,998,231   2,354,337    6,006,970   8,100,477
  Unauthorized transaction
   related costs and
   (recoveries), net             1,078    (231,162)      78,570    (827,707)
                           ----------- -----------  ----------- -----------
    Total operating
     expenses                1,999,309   2,123,175    6,085,540   7,272,770
                           ----------- -----------  ----------- -----------

      Income (loss) from
       operations              115,804  (1,029,540)     282,597  (6,305,410)

Other expense (income):
  Interest expense
   (income)                          -     (65,536)      12,813     (49,737)
                           ----------- -----------  ----------- -----------

      Income (loss) before
       income tax
       provision (benefit)     115,804    (964,004)     269,784  (6,255,673)

Income tax provision
 (benefit)                      58,586    (938,883)     141,978  (2,857,113)
                           ----------- -----------  ----------- -----------

        Net income (loss)  $    57,218 $   (25,121) $   127,806 $(3,398,560)
                           =========== ===========  =========== ===========

Income (loss) per common
 share:
        Basic              $      0.01 $         -  $      0.02 $     (0.46)
                           =========== ===========  =========== ===========
        Diluted            $      0.01 $         -  $      0.02 $     (0.46)
                           =========== ===========  =========== ===========

Dividends declared per
 common share              $         - $      0.06  $         - $      0.18
                           =========== ===========  =========== ===========



                              KOSS CORPORATION
       RECONCILIATION OF NET INCOME (LOSS) TO EBITDA FROM OPERATIONS
                                (Unaudited)

                                 Three Months Ended     Nine Months Ended
                                      March 31              March 31
                                -------------------  ----------------------
                                   2015      2014       2015        2014
                                --------- ---------  ---------- -----------
Net income (loss)               $  57,218 $ (25,121) $  127,806 $(3,398,560)
Interest expense (income)               -   (65,536)     12,813     (49,737)
Income tax provision (benefit)     58,586  (938,883)    141,978  (2,857,113)
Unauthorized transaction
 related costs and
 (recoveries), net                  1,078  (231,162)     78,570    (827,707)
Depreciation of equipment and
 leasehold improvements           108,544   146,849     437,344     569,027
Amortization of product
 software development
 expenditures                           -         -           -     364,539
Impairment of capitalized
 software, inventory and
 related items                          -         -           -   4,535,747
Stock-based compensation
 expense                          156,010   172,477     474,501     516,829
                                --------- ---------  ---------- -----------
  EBITDA from operations        $ 381,436 $(941,376) $1,273,012 $(1,146,975)
                                ========= =========  ========== ===========

CONTACT:
Michael J. Koss
President & CEO
(414) 964-5000
Email Contact 

Source: Koss Corporation