[ This press release to the media was issued by QRS Music Inc. -- Robbie ]
NAPLES, Fla .-- Oct. 8, 1997
QRS Music Inc. ("QRS") today reported sales and net income from audited
financial statements for the six months ended June 30, 1997.
The purpose of the mid-year audit was to establish the start of a new
fiscal year. The company has elected to change its fiscal year from Dec.
31 to June 30 to better coincide with its traditional business cycle.
The company's primary manufacturing facility has a two-week vacation the
last week of June and the first week of July, which will permit the
physical inventory to be taken without interrupting production.
QRS Music Inc. reported sales of $3,648,937 and net profit of $18,154 for
the six-month period ended June 30, 1997. (The company has previously
announced results for the period ended June 30 as the second quarter of
calendar 1997.) Results for the year-ago period ended June 30, 1996, are
not comparable due to a merger with The Geneva American Group Inc.
Results for the fiscal year ended Dec. 31, 1996, are provided for
comparison purposes. For the 12 months ended Dec. 31, 1996, sales were
$8,003,553 and net profit was $43,809. Going forward, QRS will report
quarterly results of operations based on its new fiscal year. Therefore,
the quarter ended Sept. 30, 1997, is the first quarter of fiscal 1998.
Richard A. Dolan, QRS chairman and president, said sales for the third
calendar quarter were approximately $2.3 million as compared to $1.8
million for the year-ago period, or approximately a 25% increase.
Dolan added that this year (calendar year 1997) has been, and continues
to be, a year of building and reorganizing for future growth. A new
13,000-square-foot addition to the Story & Clark manufacturing facility,
located in Seneca, Pa., has been completed and is now operational. This
new manufacturing facility is the home to the new Hampton grand piano
line. The new piano has been well received by the industry and the
production level needs to catch up to the demand. Also, several new
products introduced at the National Association of Music Merchants (NAMM)
trade show in January are just starting to be shipped in quantity,
primarily the new digital line.
The QRS Pianomation(TM) system can turn any piano into a reproducing
player piano. A patented 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, 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(TM) blends
them together in perfect harmony and perfect synchronization. The
Pianomation(TM) MIDI System is the first product of its kind to "marry"
analog and digital technology.
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," "anticipates," "plans," or "expects"
is forward-looking, and these statements involve risks and uncertainties
and are based on current expectations. Consequently, actual results
could differ materially from the expectations expressed in these
forward-looking statements.
QRS Music's World Wide Web site is http://www.QRSMusic.com .
Sample audio selections are available at the Web site. QRS is also
on America Online (Keyword: QRS). QRS Music Inc. stock is traded on
the NASD Electronic Bulletin Board market system with the symbol QRSM.
Standard & Poor's CORPORATIONS RECORDS provides coverage on QRS Music,
Inc. Standard & Poor's Internet site for QRS is
http://www.stockinfo.standardpoor.com/otc/qrsmusic.htm .
QRS Music Inc.
Consolidated Statements of Income
Six Months Ended Year Ended
June 30, Dec. 31,
1997 1996
Sales $3,648,937 $8,003,553
Cost of goods sold 2,687,083 6,065,056
Gross profit 961,854 1,938,497
Selling, general and
administrative expense 852,448 1,549,707
Research and development 49,396 168,498
Total operating expenses 901,844 1,718,205
Income from operations 60,010 220,292
Interest expense 30,931 122,483
Income before income taxes 29,079 97,809
Provision for income taxes:
Current:
Federal (15,794) 81,000
State (3,281) 13,000
Deferred tax expense (benefit) 30,000 (40,000)
10,925 54,000
Net income $ 18,154 $ 43,809
Primary and fully diluted earnings
per share $ -- $ .01
Common shares used in earnings per
share calculation $9,248,956 $8,422,665
CONTACT:
Campbell & Associates
Chuck Campbell, 708/798-9405
E-mail: campbell@mcs.com
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