QRS Music Technologies, Inc. Reports Third Quarter Results and Nine Month Results

  
    
  
  
    
      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