Skullcandy has lowered its projections for the current financial year due to uncertainty in Europe and increasing promotional activity leading into the holiday season. Nevertheless, the company's sales went up by 17.1 percent to $71.0 million in the third quarter ended Sept. 30. The gross margin improved to 48.0 percent from 47.5 percent in 2011. Net income reached $6.5 million. In the same quarter of 2011, the American supplier of headphones recorded a net profit of $1.0 million, or $4.5 million on an adjusted basis.