Message #10 From:
NewsBot Date: October 13, 2006 02:49:00 PM
QRSM News QRS Music Technologies, Inc. Reports Year-End Results
NAPLES, Fla.--(BUSINESS WIRE)--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
