Koss Corp. (KOSS, Financial) filed Annual Report for the period ended 2010-06-30.
Koss Corp. has a market cap of $39.87 million; its shares were traded at around $5.4 with a P/E ratio of 24.55 and P/S ratio of 0.98. The dividend yield of Koss Corp. stocks is 4.44%.KOSS is in the portfolios of Chuck Royce of Royce& Associates.
The amount expensed on engineering and research activities relating to the development of new products or the improvement of existing products was approximately $766,000 during 2010 as compared with $1,559,000 during 2009. These activities were conducted by both Company personnel and outside consultants. The Company expects that research and development costs will continue and it is planning to introduce a new offering during fiscal year 2011.
The Company sells a line of products with a suggested retail price ranging from less than $10 up to $1,000. The gross margin for each of these models is unique in terms of percentages. The price range of the products also produces a different level of actual dollar contribution per unit. For example, a product with a gross margin contribution of 50% might yield a $5 contribution for one item, while another item may feature a 30% gross margin which could yield $50. The Company finds the low priced portion of the market most competitive and therefore most subject to pressure on gross margin percentages, which tends to lower profit contributions. Retail preference for lower priced items can reduce profit margins and contributions. The risk is that a shift in retail customer specifications toward lower priced items can lead to lower gross margins and lower profit contributions per unit of sale. Due to the range of products that the Company sells, the product sales mix can produce a variation in terms of a range of profit margins. Some customers sell a limited range of products that yield lower profit margins than others. Most notably, the budget priced headphone segment of the market below $10 retail, which is distributed through computer stores, office supply stores and mass market retailers, tends to yield the lowest gross margins. An increase in business with these types of accounts, if coupled with a simultaneous reduction in sales to customers with higher gross margins, would reduce profit margins and profitability.
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Koss Corp. has a market cap of $39.87 million; its shares were traded at around $5.4 with a P/E ratio of 24.55 and P/S ratio of 0.98. The dividend yield of Koss Corp. stocks is 4.44%.KOSS is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
The aggregate market value of the common voting stock held by nonaffiliates of the registrant as of December 31, 2009 was approximately $13,772,465 (based on the $5.51 per share closing price of the Companys common stock as reported on the NASDAQ Stock Market on December 31, 2009.The amount expensed on engineering and research activities relating to the development of new products or the improvement of existing products was approximately $766,000 during 2010 as compared with $1,559,000 during 2009. These activities were conducted by both Company personnel and outside consultants. The Company expects that research and development costs will continue and it is planning to introduce a new offering during fiscal year 2011.
The Company sells a line of products with a suggested retail price ranging from less than $10 up to $1,000. The gross margin for each of these models is unique in terms of percentages. The price range of the products also produces a different level of actual dollar contribution per unit. For example, a product with a gross margin contribution of 50% might yield a $5 contribution for one item, while another item may feature a 30% gross margin which could yield $50. The Company finds the low priced portion of the market most competitive and therefore most subject to pressure on gross margin percentages, which tends to lower profit contributions. Retail preference for lower priced items can reduce profit margins and contributions. The risk is that a shift in retail customer specifications toward lower priced items can lead to lower gross margins and lower profit contributions per unit of sale. Due to the range of products that the Company sells, the product sales mix can produce a variation in terms of a range of profit margins. Some customers sell a limited range of products that yield lower profit margins than others. Most notably, the budget priced headphone segment of the market below $10 retail, which is distributed through computer stores, office supply stores and mass market retailers, tends to yield the lowest gross margins. An increase in business with these types of accounts, if coupled with a simultaneous reduction in sales to customers with higher gross margins, would reduce profit margins and profitability.
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