QRSM reported third quarter numbers and it shows they are still on a roll. This story gets better and better...
Sales up 26%
Net income up 47%
EPS up 66%
NAPLES, Fla., May 21, 2004 (BUSINESS WIRE) -- QRS Music Technologies, Inc.
(OTCBB:QRSM) announced today sales and net income for the three months and nine
months ended March 31, 2004.
Sales for the three months ended March 31, 2004, were $4,526,636 with net income
of $443,371 (available to common shareholders), or $.05 per share fully diluted.
Comparable amounts for the year-ago period ended March 31, 2003, were total
sales of $3,575,625 with net income of $290,629 (available to common
shareholders), or $.03 per share fully diluted. Therefore, sales increased 26.6
percent, net income increased 47.32 percent and earnings per share (available to
common shareholders) increased 66.6 percent.
Sales for the nine months ended March 31, 2004, were $14,626,386 with net income
of $1,562,396 (available to common shareholders), or $.17 per share fully
diluted. Comparable amounts for the year-ago period ended March 31, 2003, were
total sales of $11,325,760 with net income of $1,051,922 (available to common
shareholders), or $.11 per share fully diluted. Therefore, sales increased 29.1
percent, net income increased 44.4 percent and earnings per share (available to
common shareholders) increased 54.5 percent.
Tom Dolan, President and CEO, said: "I am very proud of our sales force. Since
being formed in August 2002, they have been directly responsible for our
increased sales results. Those sales have resulted in our improved net income
and earnings per share. Our extensive product line of grand and upright pianos,
various Pianomation(R) products, specialty products, piano supplies and wide
range of music products permit us to offer a full line of products to a piano
dealer. Dealer and technician coverage in most every state has been growing as
we continue to pursue our business plans. Our emphasis from a product
development company to a marketing and sales company is becoming a reality."
Earlier this week the Company announced it had discovered that a default
judgment in the amount of approximately $478,000 plus interest had been entered
against it in United States Bankruptcy Court, Southern District of Ohio, Western
Division. The default judgment was granted to Dwight's Piano Co, fka Baldwin
Piano & Organ Company and subsidiaries, and was based upon Plaintiff's claims
that preferential transfers were made during the 90 period prior to Baldwin's
bankruptcy filing on May 31, 2001. The Company intends to promptly file a motion
seeking vacation of the judgment.
The Company had not previously accounted for the default judgment in its
financial statements. Today the Company has filed amendments to the financial
statements in its Forms 10-QSB for the quarters ended September 30, 2003 and
December 31, 2003, and its Form 10-KSB for the fiscal year ended June 30, 2003.
The effect of the amendments on the income statement in the Form 10-KSB dated
June 30, 2003, will be to increase bad debt expense by $477,601, decrease income
tax expense by $181,000 and decrease net income by approximately $297,000 or
$.03 per share.
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 10-KSB for the fiscal
year ended June 30, 2003, 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
Three Months Ended Nine Months Ended
March 31 March 31
2004 2003 2004 2003
Operating Data:
Sales 4,526,636 3,575,625 14,626,386 11,325,760
Cost of goods sold 2,709,455 2,303,967 9,477,496 7,141,704
------------------------------------------
Gross Profit 1,817,181 1,271,658 5,148,890 4,184,056
Selling, general and
administrative expense 981,226 589,685 2,224,903 1,960,807
Research and development 63,102 150,376 230,732 327,294
------------------------------------------
Income from Operations 772,853 531,597 2,693,255 1,895,955
Interest Expense 5,971 10,152 19,482 25,685
------------------------------------------
Income before Taxes 766,882 521,445 2,673,773 1,870,270
Provision for Income Taxes 291,415 198,720 1,015,089 722,060
------------------------------------------
Net Earnings (Losses) 475,467 322,725 1,658,684 1,148,210
Less current period
dividends in arrears 32,096 32,096 96,288 96,288
------------------------------------------
Income available to common
stockholders 443,371 290,629 1,562,396 1,051,922
------------------------------------------
Net income per common share 0.05 0.03 0.17 0.11
------------------------------------------
Weighted Average Shares
Outstanding 9,358,956 9,358,956 9,358,956 9,288,080
----------------------------------------------------------------------
SOURCE: QRS Music Technologies, Inc.
CONTACT: For QRS Music Technologies, Inc.
Chuck Campbell, 708-798-9405
www.QRSMusic.com
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KEYWORD: OHIO FLORIDA
INDUSTRY KEYWORD: SOFTWARE
HARDWARE
ENTERTAINMENT
MUSIC
EARNINGS
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