QRSM QRS Music Technologies Inc (CE)

QRS Music Technologies, Inc. (OTCBB: QRSM) today reported sales and net income for the three months and the nine months ended March 31, 2006. Sales for the three months ended March 31, 2006, were $4,465,173 with a net loss of $63,275 (available to common shareholders), or $.01 per share fully diluted. Comparable amounts for the year-ago period, ended March 31, 2005, were total sales of $4,315,004 with net income of $597,240 (available to common shareholders), or $.06 per share fully diluted. Sales for the nine months ended March 31, 2006, were $14,154,689 with net income of $289,203 (available to common shareholders), or $.03 per share fully diluted. Comparable amounts for the year-ago period, ended March 31, 2005, were total sales of $15,995,760 with net income of $1,427,287 (available to common shareholders), or $.15 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. The QRS Pianomation(R) MIDI system is the first product of its kind to "marry" analog and digital technology and can 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 http://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 9 For 9 Months Months Months Months Ended Ended Ended Ended 3/31/2006 3/31/2005 3/31/2006 3/31/2005 ----------------------------------------------- Operating Data: Sales 4,465,173 4,315,004 14,154,689 15,955,760 Cost of sales 2,730,047 2,590,716 9,276,930 10,584,630 Gross Profit 1,735,126 1,724,288 4,877,759 5,371,130 Selling, general and administrative expense 1,594,314 457,295 3,582,617 2,426,714 Research and development 171,487 234,023 661,045 431,447 Income from operations (30,675) 1,032,970 634,097 2,512,969 Interest Expense 19,504 10,634 29,606 25,394 Income before Taxes (50,179) 1,022,336 604,491 2,487,575 Provision for Income Taxes (19,000) 393,000 219,000 964,000 ---------------------------------------------------------------------- Less current yr preferred stock dividends in arrears 32,096 32,096 96,288 96,288 ---------------------------------------------------------------------- Net Earnings (Losses) (63,275) 597,240 289,203 1,427,287 ---------------------------------------------------------------------- Net income per share (0.01) 0.06 0.03 0.15 ---------------------------------------------------------------------- Balance Sheet Data: Total Assets 12,936,814 11,683,703 12,936,814 11,683,703 ---------------------------------------------------------------------- Total Liabilities 2,925,424 1,832,042 2,925,424 1,832,042 ---------------------------------------------------------------------- *T