QRSM QRS Music Technologies Inc (CE)

QRS Music Technologies, Inc. (OTCBB: QRSM) announced today sales and a net loss for the three months ended September 30, 2005. Sales for the three months ended September 30, 2005, were $3,959,246 with a net loss of $70,180 (available to common shareholders), or $.01 per share fully diluted. Comparable amounts for the year-ago period ended September 30, 2004, were total sales of $4,840,730 with net income of $230,674 (available to common shareholders), or $.02 per share fully diluted. The decreased sales were the result of the delay in the release of a new controller which lead buyers to postpone their purchases and a hesitant buying public. The QRS Pianomation(R) system can turn any piano into a reproducing player piano. A hardware and software process can store and transport Musical Instrument Digital Interface ("MIDI") information as an analog signal. This process gives QRS the ability to store, and wirelessly transmit, MIDI performance data in an analog format from a controller (CD, video, cassette, DVD, DAT or Minidisc) to the receiver on the piano. This creates numerous possibilities. For example, most off-the-shelf audio equipment has a left and right channel available for use. State-of-the-art technology permits QRS to store the digital signal in an analog format on the left channel of the software that operates those players. This leaves the right channel available for live prerecorded audio music, even vocal recordings. Pianomation(R) blends them together in perfect harmony and perfect synchronization. The Pianomation(R) MIDI System is the first product of its kind to "marry" analog and digital technology. QRS Music Technologies' World Wide Web site is www.QRSMusic.com. Sample audio selections are available at the Web Site. QRS Music Technologies, Inc.'s stock is traded Over-The-Counter on the OTCBB: QRSM. Forward-Looking Statements. Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statements containing words, such as, "believes," "should," "anticipates," "plans," or "expects" as well as other statements are forward-looking, and those statements involve risks and uncertainties outside of the control of QRS and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Attention is directed to cautionary statements in our filings on Form 10K-SB for the fiscal year ended June 30, 2005, and our other filings with the Securities and Exchange Commission. All those filings are available on the Web site of the Securities and Exchange Commission at www.sec.gov. -0- *T Selected Unaudited Financial Data For 3 Months For 3 Months Ended Ended 9/30/2005 9/30/2004 --------------------------- Operating Data: Sales 3,959,246 4,840,730 Cost of sales 2,829,615 3,452,139 Gross Profit 1,129,631 1,388,591 Selling, general and administrative expense 923,451 858,933 Research and development 279,920 102,880 Income from operations (73,740) 426,778 Interest Expense 5,344 3,008 Income before Taxes (79,084) 423,770 Provision for Income Taxes (41,000) 161,000 ---------------------------------------------------------------------- Less current yr preferred stock dividends in arrears 32,096 32,096 ---------------------------------------------------------------------- Net Earnings (Losses) (70,180) 230,674 ---------------------------------------------------------------------- Net income per share (0.01) 0.02 ---------------------------------------------------------------------- Balance Sheet Data: Total Assets 12,816,488 10,909,921 ---------------------------------------------------------------------- Total Liabilities 3,428,672 2,319,065 ---------------------------------------------------------------------- *T