QRSM QRS Music Technologies Inc (CE)

QRS Music Technologies, Inc. (OTCBB: QRSM) today reported sales and net a loss for the three months and the nine months ended March 31, 2007. Sales for the three months ended March 31, 2007 were $3,274,193 with a net loss of $257,062 (available to common shareholders), or $.03 per share fully diluted. Comparable amounts for the year ago period, ended March 31, 2006, were total sales of $4,465,173 with a net loss of $63,275 (available to common shareholders), or $.01 per share fully diluted. A decrease in the sales of pianos accounted for the decrease. The Company believes the decreased piano sales were the result of a general decline in purchases of pianos by the marketplace. Sales for the nine months ended March 31, 2007 were $11,885,315 with a net loss of $359,413 (available to common shareholders), or $.04 per share fully diluted. Comparable amounts for the year ago period, ended March 31, 2006, were total sales of $14,154,689 with net income of $289,203 (available to common shareholders), or $.03 per share fully diluted. A decrease in the sales of pianos accounted for the decrease. The Company believes the decreased piano sales were the result of a general decline in purchases of pianos by the marketplace. As reported on February 13, 2006, the Company signed a Letter of Intent on February 10, 2006 to pursue discussions regarding the possible acquisition of National Education Music Co. (�NEMC�), Mountainside, New Jersey. Those discussions are continuing. About QRS Music Technologies, Inc. QRS Music Technologies, Inc. manufactures and distributes pianos and piano accessories, Pianomation� 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�, 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 10-KSB 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. Selected Unaudited Financial Data � � � For 3 Months Ended For 3 Months Ended For 9 Months Ended For 9 Months Ended 3/31/2007� 3/31/2006� 3/31/2007� 3/31/2006� � Operating Data: Sales 3,274,193� 4,465,173� 11,885,315� 14,154,689� Cost of sales 2,307,511� 2,730,047� 8,536,008� 9,276,930� Gross Profit 966,682� 1,735,126� 3,349,307� 4,877,759� � Selling, general and administrative expense 1,135,068� 1,594,314� 3,332,133� 3,582,617� Research and development 168,089� 171,487� 385,338� 661,045� Income from operations (336,475) (30,675) (368,164) 634,097� � Interest Expense 12,491� 19,504� 33,961� 29,606� Income before Taxes (348,966) (50,179) (402,125) 604,491� Provision for Income Taxes (124,000) (19,000) (139,000) 219,000� Less current yr preferred stock dividends in arrears 32,096� 32,096� 96,288� 96,288� Net Earnings (Losses) (257,062) (63,275) (359,413) 289,203� Net income per share (0.03) (0.01) (0.04) 0.03� � Balance Sheet Data: Total Assets 12,332,631� 12,936,814� � � Total Liabilities 2,670,893� 2,925,424� � �