Koss Sales and Earnings up on Stronger Domestic Sales

Koss Sales and Earnings up on Stronger Domestic Sales 
MILWAUKEE, WI -- (Marketwire) -- 10/24/12 --  Koss Corporation
(NASDAQ: KOSS), the U.S. based high-fidelity headphone company, has
announced results for its first quarter ending September 30, 2012.  
Sales for the first quarter were $8,914,862 compared to $8,754,785
for the same period one year ago, a 2% increase. Net income grew by
30% to $366,153, compared to $280,597 for the first quarter last
year. Diluted earnings per share for the quarter were $0.05 compared
with $0.04 in the same period one year ago. 
"Sales to U.S. domestic retailers continued to increase in the
quarter due to new customers added late in our fiscal year ended June
30, 2012," Michael J. Koss, President and CEO, told employees here
today. "Our European sales continue to be soft based upon the
challenging economy there." 
The Company will pay a dividend of $0.06 cents per share on December
28, 2012, to shareholders of record on December 14, 2012.  
Koss Corporation markets a complete line of high-fidelity headphones,
speaker-phones, 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
only predictions. 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. 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 STATEMENTS OF INCOME                       
                                 (Unaudited)                                
                                                                            
                                                     Three Months Ended     
                                                        September 30        
                                                 -------------------------- 
                                                     2012          2011     
                                                 ------------  ------------ 
Net sales                                        $  8,914,862  $  8,754,785 
Cost of goods sold                                  5,663,690     5,426,543 
                                                 ------------  ------------ 
Gross profit                                        3,251,172     3,328,242 
                                                 ------------  ------------ 
Operating Expenses:                                                         
  Selling, general and administrative expenses      3,018,751     2,885,187 
  Unauthorized transaction related costs and                                
   (recoveries), net                                 (382,727)      (50,414)
                                                 ------------  ------------ 
    Total Operating Expenses                        2,636,024     2,834,773 
                                                 ------------  ------------ 
    Income from operations                            615,148       493,469 
Other Income (Expense):                                                     
  Interest income                                          10            -- 
  Interest expense                                    (29,309)      (40,526)
                                                 ------------  ------------ 
    Total Other Income (Expense), net                 (29,299)      (40,526)
                                                 ------------  ------------ 
Income before income tax provision                    585,849       452,943 
Income tax provision                                  219,696       172,346 
                                                 ------------  ------------ 
      Net income                                 $    366,153  $    280,597 
                                                 ============  ============ 
Income per common share:                                                    
      Basic                                      $       0.05  $       0.04 
      Diluted                                    $       0.05  $       0.04 
                                                 ============  ============ 
Dividends declared per common share              $       0.06  $       0.06 
                                                 ============  ============ 

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