GlobeNewswire Inc | Aug 20, 2020 05:15PM EDT

August 20, 2020

MILWAUKEE, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high-fidelity headphone company, has reported its fourthquarterresults for the quarter ended June 30, 2020.

Sales for the fourthquarterwere $3,948,967, which is a 31.7%decrease from sales of $5,785,784for the same three month period one year ago. The three month net income was $158,239, compared tonet incomeof $23,388for the fourthquarterlast year. Diluted and basic incomeper common share for the quarter was $0.02compared to diluted and basic incomeper common share of $0.00for the three month period one year ago.

We experienced lower sales in the quarter as retail in the US and Europe struggled to rebound from the negative impact of the COVID-19 pandemic," Michael J. Koss, Chairman and CEO, said today."Communications products have become a more significantsegment of our revenue as people shifted to working and studying from home." Koss went on to explain that the Company received a recovery of patent related legal fees in the quarter and experiencedimproved margins of34.5% in the three months ended June 30, 2020 compared to 28.9% in the same quarter last year.

Sales for the yearended June 30, 2020, decreased 16.2%from $21,842,097in the same period last year to $18,311,830in the current year. The net loss for the year ended June 30, 2020, was $465,597compared tonet incomeof $305,989for the same period last year. Diluted and basic lossper common share was $0.06for the year ended June 30, 2020 compared to incomeper common share of $0.04for the sameperiod one year ago.

The decline in sales for the year was entirely in the export markets with Europe basically shutting down to fight the pandemic. Sales to Asia decreased with completion of a contract during the prior fiscal year, Koss said. We were pleased to see sales in domestic markets hold up although there were clear shifts in channels as more sales moved online.

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 "anticipates," "believes," "estimates," "expects," "intends," "plans," "may," "will," "should," "forecasts," "predicts," "potential," "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 CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)

Three Months Ended Twelve Months Ended June 30, June 30, 2020 2019* 2020 2019* Net sales $ 3,948,967 $ 5,785,784 $ 18,311,830 $ 21,842,097 Cost of goods 2,587,676 4,114,799 12,649,222 15,022,223 soldGross profit 1,361,291 1,670,985 5,662,608 6,819,874 Selling, generaland 1,207,668 1,654,283 6,146,650 6,543,566 administrativeexpenses (Loss) income 153,623 16,702 (484,042 ) 276,308 from operations Interest income 230 3,178 20,185 3,178 (Loss) incomebefore income 153,853 19,880 (463,857 ) 279,486 tax provision Income taxprovision (4,386 ) (3,508 ) 1,740 (26,503 )(benefit) Net (loss) $ 158,239 $ 23,388 $ (465,597 ) $ 305,989 income (Loss) incomeper common share:Basic $ 0.02 $ 0.00 $ (0.06 ) $ 0.04 Diluted $ 0.02 $ 0.00 $ (0.06 ) $ 0.04 Weighted-averagenumber of shares:Basic 7,404,831 7,404,831 7,404,831 7,401,030 Diluted 7,404,831 7,407,388 7,404,831 7,407,827

*As adjusted for change in accounting policy

CONTACT: Michael J. Koss Chairman & CEO (414) 964-5000 mjkoss@koss.com