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<SEC-DOCUMENT>0001181431-06-042511.txt : 20060718
<SEC-HEADER>0001181431-06-042511.hdr.sgml : 20060718
<ACCEPTANCE-DATETIME>20060718163034
ACCESSION NUMBER:		0001181431-06-042511
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060717
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060718
DATE AS OF CHANGE:		20060718

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KOSS CORP
		CENTRAL INDEX KEY:			0000056701
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
		IRS NUMBER:				391168275
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-03295
		FILM NUMBER:		06967402

	BUSINESS ADDRESS:	
		STREET 1:		4129 N PORT WASHINGTON AVE
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53212
		BUSINESS PHONE:		4149645000

	MAIL ADDRESS:	
		STREET 1:		4129 N PORT WASHINGTON AVE
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53212

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KOSS ELECTRONICS INC
		DATE OF NAME CHANGE:	19721005

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	REK O KUT CO INC
		DATE OF NAME CHANGE:	19680124
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd124769.htm
<DESCRIPTION>FORM 8-K REGARDING YEAR-END AND Q4 EARNINGS
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
</head>
<body Bgcolor="white">

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<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>UNITED STATES </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Washington, D.C. 20549 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Current Report </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;07/17/2006 </b></font></div>




<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Koss Corporation </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Exact name of registrant as specified in its charter)</b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Commission File Number:&nbsp;&nbsp;0-3295</b></font></div>

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<div Align="center"><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">
<tr>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>DE</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>39-1168275</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(State or other jurisdiction of</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>incorporation)</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Identification No.)</b></font>
</div>
</td>
</tr>

</table></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>4129 North Port Washington Avenue, Milwaukee, WI 53212</b></font></div>


<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Address of principal executive offices, including zip code)</b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>(414) 964-5000 </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Registrant&#146;s telephone number, including area code)</b></font>
</div>



<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b> </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Former name or former address, if changed since last report) </b></font>
</div>


<div><font Size="1">&nbsp;</font>
</div>




<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</b>

</font>
</div>





<div><font Size="1">&nbsp;</font>
</div>

<hr Size="4" Noshade Color="#000000" Align="left">


<p Style='page-break-before:always'>
<p Align="center"><font Size="2">
Information to be included in the report</b>
</font>





<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
On July 17, 2006, Koss Corporation issued a press release announcing its financial results for the quarter and year ended June 30, 2006.  A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K.<p>The information in this report is being furnished pursuant to Item 2.02 Results of Operations and Financial Condition.  In accordance with General Instruction B.2 of Form 8-K, the information in this report shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, as amended.</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Exhibit 99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press Release dated July 17, 2006, announcing financial results for the quarter and year ended June 30, 2006</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<hr  Size="3" Color="#cceeff" Width="100%" Align="center">
<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Signature(s) </b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000"></font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Koss Corporation</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: July 18, 2006</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;Michael J. Koss</font>
	</div>
	<hr Noshade Align="left" Color="#000000">
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Michael J. Koss</font>
	</div>
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Chief Executive Officer, President and Chief Financial Officer</font>
	</div>
</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





<p Style='page-break-before:always'>
<hr  Size="3" Color="#cceeff" Width="100%" Align="center">

<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Exhibit Index </b></font>
</div>

<div><font Size="2">&nbsp;</font></div>

<div Align="center">
<table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Align="left">
	<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
	<b>Exhibit&nbsp;No.</b></font>
	</div>
		<hr Size="2" Noshade Width="48" Color="#000000">
	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	<b>Description</b></font>
	</div>
	<hr Size="2" Noshade Width="73" Align="left" Color="#000000">
	</td>
</tr>




<tr>
	<td Valign="top" Align="left">
	<div Align="top"><font Face="times New Roman" Size="1" Color="#000000">
	EX-99.1</font>
	</div>

	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	Press Release dated July 17, 2006, announcing financial results for the quarter and year ended June 30, 2006</font>
	</div>
		</td>
</tr>





</div></table>



</body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd124769_14813.htm
<DESCRIPTION>PRESS RELEASE DATED JULY 17, 2006, ANNOUNCING FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2006
<TEXT>



<HTML>


<HEAD>








<TITLE>Exhibit 99</TITLE>


</HEAD>


<BODY>





<B><U><P ALIGN="RIGHT">Exhibit 99.1</P>


</U><FONT SIZE=3>


<P>FOR IMMEDIATE RELEASE:  JULY 17, 2006</P>





<P>CONTACT:&#9;MICHAEL J. KOSS (414) 964-5000</P>





</FONT><P ALIGN="CENTER">Koss Fiscal Year Sets New Records</P>


<P ALIGN="CENTER">Year End Net Shipments Top $50 Million</P>


<P ALIGN="CENTER">Net Income Up 38% Earnings Per Share Jump 43%</P>


<P ALIGN="JUSTIFY"></P>


<FONT SIZE=3><P ALIGN="JUSTIFY">Milwaukee, Wisconsin:</B>  Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high fidelity stereophone company, has announced quarterly earnings for its fourth quarter fiscal year period ending June 30, 2006.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Year to date sales for the Company for the fiscal year ending June 30, 2006 were $50,891,637 compared with $40,286,691.  Net income for the twelve months ending June 30, 2006 was $6,222,191 compared with $4,493,827 for the twelve months ending in 2005.  Diluted earnings per share for the twelve months ending June 30, 2006 were $1.63 compared with $1.14 for the same period one year ago.   </P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">For the fourth quarter ending June 30, 2006, sales trended down based on weaker quarterly export shipments.  The Company recorded shipments for its final quarter of $10,283,703 compared with the record setting $11,316,346 in shipments for the same period one year ago.  Net income for the same period was $1,249,609 compared with $1,498,498 for the fourth quarter ending June 30, 2005.  Diluted earnings per share for the fourth quarter were $0.33 compared with $0.39 for the same quarter one year ago.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">"We are very pleased with the sales performance of the fiscal year," Michael J. Koss, President and CEO, told employees here today.  "We set new records in Net Sales, Net Income from Operations, and Earnings per Share."</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Koss went on to explain that three out of four quarters during the year had set new revenue records but that some slight softening had occurred in the fourth quarter.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">"We did experience some sluggishness in domestic retail orders during the last quarter of our fiscal year that we were able to replace.  However, we were also impacted by the first signs of some softening in our export markets," Koss said.  "It is too early to tell if interest rate pressures are affecting domestic retail "open-to-buy" decisions for the autumn, but much of what we read in the press indicates some softness in U.S. retail during the past few months."</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Michael Koss elaborated that the increases in export sales outside of North America had been sustained for four consecutive fiscal years at 15% in 2003, 72% in 2004, 82% for 2005 and 43% in 2006.  </P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">"The entire revenue shortfall for the quarter, when compared to the prior year's fourth quarter, can be traced to export shipments," Michael Koss continued.  "Last year we saw those same European markets nearly double in volume during the fourth quarter, and this year they declined in comparison by 33%."</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Michael Koss then explained that the Company's net income during the fourth quarter had declined compared to the same period for the prior year relative to the decline in sales, but also added that increases were required in expenses pertaining to doubtful accounts, and that the Company had also experienced a decline in royalty income during the fourth quarter relating to the bankruptcy of its Hong Kong licensee of electronics." </P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Koss paid a special dividend of $1.00 per share on July 15, 2006 to shareholders of record on June 30, 2006 in addition to a quarterly dividend of $0.13 cents per share on July 15, 2006, to shareholders of record June 30, 2006.</P>


</FONT><B><P ALIGN="JUSTIFY"></P>


</B><FONT SIZE=3><P ALIGN="JUSTIFY">Koss Corporation markets a complete line of high-fidelity stereophones, speaker-phones, computer headsets, telecommunications headsets, active noise canceling stereophones, wireless stereophones, and compact disc recordings of American Symphony Orchestras on the Koss Classics label.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">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 carefu
lly 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. </P>


<P ALIGN="CENTER"></P>


</FONT><B><FONT SIZE=2><P ALIGN="CENTER">KOSS CORPORATION AND SUBSIDIARIES</P>


<P ALIGN="CENTER">CONDENSED CONSOLIDATED STATEMENT OF INCOME</P>


</B><P ALIGN="CENTER">(2006 FY Unaudited)</P>


</FONT>


<TABLE BORDER CELLSPACING=1 CELLPADDING=2 WIDTH=650>


<TR><TD WIDTH="34%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="33%" VALIGN="TOP" COLSPAN=2>


<B><FONT SIZE=2><P ALIGN="CENTER">Three Months</B></FONT></TD>


<TD WIDTH="33%" VALIGN="TOP" COLSPAN=2>


<B><FONT SIZE=2><P ALIGN="CENTER">Twelve Months</B></FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<B><FONT SIZE=2><P>Period Ended June 30</B></FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">2006</B></FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">2006</B></FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Net sales</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$10,283,703</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$11,316,346</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$50,891,637</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$40,286,691</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Cost of goods sold</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">6,156,430</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">7,241,487</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">31,095,377</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">25,216,760</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Gross profit</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">4,127,273</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">4,074,859</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">19,796,260</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">15,069,931</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=32>


<FONT SIZE=2><P>Selling, general and administrative expense</FONT></TD>


<TD WIDTH="17%" VALIGN="BOTTOM" HEIGHT=32>


<FONT SIZE=2><P ALIGN="RIGHT">2,151,175</FONT></TD>


<TD WIDTH="17%" VALIGN="BOTTOM" HEIGHT=32>


<FONT SIZE=2><P ALIGN="RIGHT">1,767,491</FONT></TD>


<TD WIDTH="17%" VALIGN="BOTTOM" HEIGHT=32>


<FONT SIZE=2><P ALIGN="RIGHT">10,063,871</FONT></TD>


<TD WIDTH="17%" VALIGN="BOTTOM" HEIGHT=32>


<FONT SIZE=2><P ALIGN="RIGHT">8,544,383</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Income from operations</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">1,976,098</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">2,307,368</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">9,732,389</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">6,525,548</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Other income (expense)</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>  Royalty income</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">65,000</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">147,494</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">341,918</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">805,485</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>  Interest income</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">49,386</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">30,356</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">169,047</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">64,795</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>  Interest expense</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">0</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">0</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">0</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">0</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Income before income tax provision</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">2,090,484</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">2,485,218</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">10,243,354</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">7,395,828</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Provision for income taxes</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">840,875</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">986,720</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">4,021,163</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">2,902,001</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>  Net income</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$ 1,249,609  </FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$ 1,498,498</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$ 6,222,191  </FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$ 4,493,827 </FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Earnings per common share:</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>  Basic</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$0.34</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$0.40</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$1.68</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$1.21</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>  Diluted</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$0.33</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$0.39</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$1.63</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$1.14</FONT></TD>


</TR>


<TR><TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=2><P>Dividends per common share</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$1.13</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$0.13</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$1.52</FONT></TD>


<TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="RIGHT">$0.52</FONT></TD>


</TR>


</TABLE>





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