QRSM QRS Music Technologies, Inc. Reports Second-Quarter Results and Six-Month Results
QRS Music Technologies, Inc. Reports Second-Quarter Results and Six-Month Results
NAPLES, Fla.
QRS Music Technologies, Inc.
Chuck Campbell, 708-798-9405
www.QRSMusic.com
QRS Music Technologies, Inc. (OTCBB: QRSM) today reports sales and net income for the three months ended December 31, 2004, and sales and net income for the six months ended December 31, 2004.
Sales for the three months ended December 31, 2004, were $6,800,026 with a net income of $599,373 (available to common shareholders), or $.06 per share fully diluted. Comparable amounts for the year ago period ended December 31, 2003, were total sales of $6,622,014 with net income of $1,028,049 (available to common shareholders), or $.11 per share fully diluted.
Sales for the six months ended December 31, 2004, were $11,640,756 with net income of $830,047 (available to common shareholders), or $.09 per share fully diluted. Comparable amounts for the year-ago period ended December 31, 2003, were total sales of $10,099,750 with net income of $1,119,025 (available to common shareholders), or $.12 per share fully diluted.
Tom Dolan, QRS Music Technologies president said: "We had about $400,000 of non-operational expense that was directly related to opening our Hong Kong office, additional Australian office expense, legal fees for two law suits that were settled favorably and certain intellectual property related filings. The single largest item was funding an employee profit-sharing plan that was very important to our staff."
He added: "The increase in inventory of about $1.3 million, since the end of our last fiscal year, is primarily due to the build up of Gulbransen pianos required for the launch of Gulbransen Direct. We announced the new line last fall and the inventory build up is a part of that process. The primary focus of the Gulbransen line will be direct sales through the Internet, as well as catalog sales. The QRS Pianomation(R) technology will be available on the Gulbransen line of pianos."
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, 2004 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 For 3 For 6 For 6
Months Months Months Months
Ended Ended Ended Ended
12/31/2004 12/31/2003 12/31/2004 12/31/2003
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Operating Data:
Sales 6,800,026 6,622,014 11,640,756 10,099,750
Cost of sales 4,541,775 4,252,849 7,993,914 6,768,041
Gross Profit 2,258,251 2,369,165 3,646,842 3,331,709
Selling, general and
administrative expense 1,110,486 571,428 1,969,419 1,243,677
Research and
development 94,544 83,661 197,424 167,630
Income from operations 1,053,221 1,714,076 1,479,999 1,920,402
Interest Expense 11,752 4,073 14,760 13,511
Income before Taxes 1,041,469 1,710,003 1,465,239 1,906,891
Provision for Income
Taxes 410,000 649,858 571,000 723,674
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Less current yr
preferred stock
dividends in arrears 32,096 32,096 64,192 64,192
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Net Earnings (Losses) 599,373 1,028,049 830,047 1,119,025
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Net income per share 0.06 0.11 0.09 0.12
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Balance Sheet Data:
Total Assets 11,607,881 10,390,050 11,607,881 10,390,050
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Total Liabilities 2,385,556 2,067,722 2,385,556 2,067,722
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