QRSM QRS Music Technologies Inc (CE)

QRS Music Technologies, Inc. (OTCBB: QRSM), a leader in the design, manufacture and distribution of pianos, piano-based audio and multimedia products, music and piano accessories, today reported sales and net income for the three months and the six months ended December 31, 2005. Sales for the three months ended December 31, 2005, were $5,730,270 with a net income of $422,658 (available to common shareholders), or $.04 per share fully diluted. Comparable amounts for the year-ago period, ended December 31, 2004, were total sales of $6,800,026 with net income of $599,373 (available to common shareholders), or $.06 per share fully diluted. Sales for the six months ended December 31, 2005, were $9,689,516 with net income of $352,478 (available to common shareholders), or $.04 per share fully diluted. Comparable amounts for the year ago period, ended December 31, 2004, were total sales of $11,640,756 with net income of $830,047 (available to common shareholders), or $.09 per share fully diluted. About QRS Music Technologies, Inc. QRS Music Technologies, Inc. manufactures and distributes pianos and piano accessories, Pianomation(R) musical instrument digital interface (MIDI) systems for acoustic and digital pianos, and compact discs and music rolls for player pianos. QRS is the creator of Pianomation(R), the first MIDI system to combine analog and digital technology to turn any piano into a reproducing player piano. QRS Music was founded in 1900 and is based in Naples, Florida. QRS is traded over-the-counter on the OTCBB: QRSM. Additional information about QRS is available at: www.qrsmusic.com. 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 For 3 For 6 For 6 Months Months Months Months Ended Ended Ended Ended 12/31/2005 12/31/2004 12/31/2005 12/31/2004 ---------------------- ---------------------- Operating Data: Sales 5,730,270 6,800,026 9,689,516 11,640,756 Cost of sales 3,717,268 4,541,775 6,546,883 7,993,914 Gross Profit 2,013,002 2,258,251 3,142,633 3,646,842 Selling, general and administrative expense 1,064,852 1,110,486 1,988,303 1,969,419 Research and development 209,638 94,544 489,558 197,424 Income from operations 738,512 1,053,221 664,772 1,479,999 Interest Expense 4,758 11,752 10,102 14,760 Income before Taxes 733,754 1,041,469 654,670 1,465,239 Provision for Income Taxes 279,000 410,000 238,000 571,000 ---------------------------------------------- ---------------------- Less current yr preferred stock dividends in arrears 32,096 32,096 64,192 64,192 ---------------------------------------------- ---------------------- Net Earnings (Losses) 422,658 599,373 352,478 830,047 ---------------------------------------------- ---------------------- Net income per share 0.05 0.06 0.04 0.09 ---------------------------------------------- ---------------------- Balance Sheet Data: Total Assets 12,021,040 11,607,881 12,021,040 11,607,881 ---------------------------------------------- ---------------------- Total Liabilities 2,178,470 2,385,556 2,178,470 2,385,556 ---------------------------------------------- ---------------------- *T