Koss Corp. (KOSS, Financial) filed Quarterly Report for the period ended 2009-09-30.
KOSS CORP. operates in the audio/video industry segment of the homeentertainment industry through its design manufacture and sale of stereoheadphones audio/video loudspeakers and related accessory products.Co.'s principal product is the design manufacture and sale ofstereophones and related accessories. Koss Corp. has a market cap of $43.3 million; its shares were traded at around $11.75 with a P/E ratio of 26.7 and P/S ratio of 1.2. The dividend yield of Koss Corp. stocks is 4.4%. Koss Corp. had an annual average earning growth of 6.7% over the past 10 years.
In April of 1995, the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to $2,000,000 of its common stock for its own account. Subsequently, the Board of directors periodically has approved increases in the stock repurchase program. The most recent increase was for an additional $2,000,000 in October 2006, for a maximum of $45,500,000. The Company intends to effectuate all stock purchases either on the open market or through privately negotiated transactions, and intends to finance all stock purchases through its own cash flow or by borrowing for such purchases.
From the commencement of the Companys stock repurchase program through September 30, 2009, the Company has purchased a total of 5,474,102 shares for a total gross purchase price of $52,768,873 (representing an average gross purchase price of $9.64 per share) and a total net purchase price of $41,945,130 (representing an average net purchase price of $7.66 per share). The difference between the total gross purchase price and the total net purchase price is the result of the Company receiving from employees cash acquired from such employees pursuant to the Companys stock option program. In determining the dollar amount available for additional purchases under the stock repurchase program, the Company uses the total net purchase price by the Company for all stock purchases, as authorized by the Board of Directors.
Net sales for the first quarter ended September 30, 2009 declined by 6% to $10,796,583 from $11,486,034 for the same period in 2008. The decrease is primarily the result of soft retail sales in the United States and Europe.
For the first quarter ended September 30, 2009, income from operations was $928,491 versus $1,401,933 for the same period in the prior year, a 37% decrease. Net income for the quarter fell by 38% to $566,379 from $913,764 for the same period in 2008. The decreases in income from operations and net income are primarily due to spending on new product development, soft retail sales worldwide and a less profitable product mix.
(1) In April of 1995, the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to $2,000,000 of its common stock for its own account. Subsequently, the Board of Directors periodically has approved increases in the stock repurchase program. The most recent increase was for an additional $2,000,000 in October 2006, for a maximum of $45,500,000 of which $43,374,113 had been expended through September 30, 2009.
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KOSS CORP. operates in the audio/video industry segment of the homeentertainment industry through its design manufacture and sale of stereoheadphones audio/video loudspeakers and related accessory products.Co.'s principal product is the design manufacture and sale ofstereophones and related accessories. Koss Corp. has a market cap of $43.3 million; its shares were traded at around $11.75 with a P/E ratio of 26.7 and P/S ratio of 1.2. The dividend yield of Koss Corp. stocks is 4.4%. Koss Corp. had an annual average earning growth of 6.7% over the past 10 years.
Highlight of Business Operations:
Capital expenditures for new equipment (including production tooling) were $542,271 for the three months ended September 30, 2009. Capital expenditures for fiscal year 2010 are expected to be approximately $2 million. The Company expects to generate sufficient funds through operations to fund these expenditures.In April of 1995, the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to $2,000,000 of its common stock for its own account. Subsequently, the Board of directors periodically has approved increases in the stock repurchase program. The most recent increase was for an additional $2,000,000 in October 2006, for a maximum of $45,500,000. The Company intends to effectuate all stock purchases either on the open market or through privately negotiated transactions, and intends to finance all stock purchases through its own cash flow or by borrowing for such purchases.
From the commencement of the Companys stock repurchase program through September 30, 2009, the Company has purchased a total of 5,474,102 shares for a total gross purchase price of $52,768,873 (representing an average gross purchase price of $9.64 per share) and a total net purchase price of $41,945,130 (representing an average net purchase price of $7.66 per share). The difference between the total gross purchase price and the total net purchase price is the result of the Company receiving from employees cash acquired from such employees pursuant to the Companys stock option program. In determining the dollar amount available for additional purchases under the stock repurchase program, the Company uses the total net purchase price by the Company for all stock purchases, as authorized by the Board of Directors.
Net sales for the first quarter ended September 30, 2009 declined by 6% to $10,796,583 from $11,486,034 for the same period in 2008. The decrease is primarily the result of soft retail sales in the United States and Europe.
For the first quarter ended September 30, 2009, income from operations was $928,491 versus $1,401,933 for the same period in the prior year, a 37% decrease. Net income for the quarter fell by 38% to $566,379 from $913,764 for the same period in 2008. The decreases in income from operations and net income are primarily due to spending on new product development, soft retail sales worldwide and a less profitable product mix.
(1) In April of 1995, the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to $2,000,000 of its common stock for its own account. Subsequently, the Board of Directors periodically has approved increases in the stock repurchase program. The most recent increase was for an additional $2,000,000 in October 2006, for a maximum of $45,500,000 of which $43,374,113 had been expended through September 30, 2009.
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