Merge eFilm has announced the financial results for the quarter ended March 31st. Net sales for the first quarter were $10.5 million, which is an increase of 22 percent over the total of $8.64 million in the quarter in 2004. Gross margin in the quarter was 67 percent, a 4 percent increase from 2004. The company's operating margin was 30 percent as opposed to 25 percent in the quarter ended March 31, 2004. And net income was $1.096 million compared to $1.354 million of net income in the 2004, the company said.