QRSM QRS Music Technologies Inc (CE)

QRS Music Technologies, Inc. (OTCBB: QRSM) announced today sales for the year ended June 30, 2006. Sales for the year ended June 30, 2006 were $18,084,539, with net income of $39,331 (available to common shareholders), or $.0 per share fully diluted. Comparable amounts for the year-ago period ended June 30, 2005 were total sales of $20,247,169 with net income of $969,432 (available to common shareholders), or $.10 per share fully diluted. Tom Dolan, President and CEO, said, �The decrease in sales was the result of the delay of the release of a new controller for the Pianomation� system, which affected sales of both technology and pianos in the first and second quarters. After it was released, it was well received by the marketplace, but during the third and fourth quarters, the overall domestic piano market declined. The decline appeared to be related to a hesitant buying public. As a result of the lower than average retail sales of pianos, dealers in turn decreased both their inventory levels and speed of reordering.� Dolan added, �We had a small Cost of Sales decrease that was the result of efforts to reduce component costs. However, SG&A (Selling, General and Administrative) expenses increased 23.8% from $3.79 million in fiscal 2005 to $4.70 million in fiscal 2006. The increase was a result of an increase in marketing and promotional expenses, an increase in delivery expenses and other items. This was offset by a decrease in commissions and related sales expenses, as a result of lower sales. Also, in fiscal 2005 there was a reversal of a previous charge (the Baldwin matter) that result in a $416,206 add back.� �Our R&D expenses increased 12.4% from $684,000 in fiscal 2005 to $769,000 in fiscal 2006 due to the varying development times of products in development. The Company is undertaking several large projects as it works to maintain its leading edge in technology for the music industry. As these projects progress in their development cycle more funds are required to bring them to fruition. Development for the Petine� and Ancho� user interfaces for the Pianomation player system were completed in fiscal 2006, and these interfaces were introduced and are now a part of the QRS product line of technology devices,� Dolan added. The QRS Pianomation� 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 which operates those players. This leaves the right channel available for live prerecorded audio music, even vocal recordings. Pianomation� blends them together in perfect harmony and perfect synchronization. The Pianomation� 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, 2006 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. For 12 Months Ended For 12 Months Ended 6/30/2005� � 6/30/2006� � Operating Data: Sales 20,247,169� 18,084,539� Cost of sales 14,064,682� 12,223,527� Gross Profit 6,182,487� 5,861,012� � Selling, general and administrative expense 3,790,904� 4,691,953� Research and development 684,217� 768,786� Income from operations 1,707,366� 400,273� � Interest Income Net Interest Expense 32,552� 32,060� Income before Taxes 1,674,814� 368,213� Provision for Income Taxes 577,000� � 200,500� Less current yr preferred stock dividends in arrears 128,382� � 128,382� Net Earnings (Losses) 969,432� � 39,331� Net income per share 0.10� � 0.00� � Balance Sheet Data: Total Assets 11,783,067� � 13,045,753� Total Liabilities 2,357,167� � 3,268,140� QRS Music Technologies, Inc. (OTCBB: QRSM) announced today sales for the year ended June 30, 2006. Sales for the year ended June 30, 2006 were $18,084,539, with net income of $39,331 (available to common shareholders), or $.0 per share fully diluted. Comparable amounts for the year-ago period ended June 30, 2005 were total sales of $20,247,169 with net income of $969,432 (available to common shareholders), or $.10 per share fully diluted. Tom Dolan, President and CEO, said, "The decrease in sales was the result of the delay of the release of a new controller for the Pianomation(R) system, which affected sales of both technology and pianos in the first and second quarters. After it was released, it was well received by the marketplace, but during the third and fourth quarters, the overall domestic piano market declined. The decline appeared to be related to a hesitant buying public. As a result of the lower than average retail sales of pianos, dealers in turn decreased both their inventory levels and speed of reordering." Dolan added, "We had a small Cost of Sales decrease that was the result of efforts to reduce component costs. However, SG&A (Selling, General and Administrative) expenses increased 23.8% from $3.79 million in fiscal 2005 to $4.70 million in fiscal 2006. The increase was a result of an increase in marketing and promotional expenses, an increase in delivery expenses and other items. This was offset by a decrease in commissions and related sales expenses, as a result of lower sales. Also, in fiscal 2005 there was a reversal of a previous charge (the Baldwin matter) that result in a $416,206 add back." "Our R&D expenses increased 12.4% from $684,000 in fiscal 2005 to $769,000 in fiscal 2006 due to the varying development times of products in development. The Company is undertaking several large projects as it works to maintain its leading edge in technology for the music industry. As these projects progress in their development cycle more funds are required to bring them to fruition. Development for the Petine(TM) and Ancho(TM) user interfaces for the Pianomation player system were completed in fiscal 2006, and these interfaces were introduced and are now a part of the QRS product line of technology devices," Dolan added. 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 which 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, 2006 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 For 12 For 12 Months Ended Months Ended 6/30/2005 6/30/2006 ------------------------------ Operating Data: Sales 20,247,169 18,084,539 Cost of sales 14,064,682 12,223,527 Gross Profit 6,182,487 5,861,012 Selling, general and administrative expense 3,790,904 4,691,953 Research and development 684,217 768,786 Income from operations 1,707,366 400,273 Interest Income Net Interest Expense 32,552 32,060 Income before Taxes 1,674,814 368,213 Provision for Income Taxes 577,000 200,500 ---------------------------------------------------------------------- Less current yr preferred stock dividends in arrears 128,382 128,382 ---------------------------------------------------------------------- Net Earnings (Losses) 969,432 39,331 ---------------------------------------------------------------------- Net income per share 0.10 0.00 ---------------------------------------------------------------------- Balance Sheet Data: Total Assets 11,783,067 13,045,753 ---------------------------------------------------------------------- Total Liabilities 2,357,167 3,268,140 ---------------------------------------------------------------------- *T