SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 26, 2007
PAR TECHNOLOGY CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-09720 16-1434688
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(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) incorporation or
organization) Identification Number)
PAR Technology Park
8383 Seneca Turnpike
New Hartford, NY 13413-4991
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (315) 738-0600
Not Applicable
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(Former Name or Former Address, if changed since Last Report)
Item 2.02 Results of Operations and Financial Condition.
(a) The information, including Exhibits attached hereto, in this Current Report
is being furnished and shall not be deemed "filed" for the purposes of
Section 18 of the Securities and Exchange Act of 1934, or otherwise subject
to the liabilities of that Section. The information in this Current Report
shall not be incorporated by reference into any registration statement or
other document pursuant to the Securities Act of 1933, as amended, except
as otherwise expressly stated in such filing.
(b) On July 26, 2007, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending June
30, 2007. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.
99.1 Press Release dated July 26, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PAR TECHNOLOGY CORPORATION
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(Registrant)
Date: July 26, 2007
/s/Ronald J. Casciano
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Ronald J. Casciano
Vice President, Chief Financial Officer
and Treasurer
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press Release dated July 26, 2007.
Exhibit 99.1 Press Release dated July 26, 2007.
RELEASE: NEW HARTFORD, NY, July 26, 2007
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION
-REPORTS SECOND QUARTER RESULTS-
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY--July 26, 2007--PAR Technology Corporation (NYSE:PTC - News)
today announced results for the second quarter ended June 30, 2007.
PAR reported second quarter revenues of $49.9 million, a 6% decrease from the
$53.3 million reported in the same period a year ago. A net loss of $1 million
was reported for the second quarter 2007, compared with net income of $2.3
million in the second quarter of 2006. Diluted loss per share was $0.07 for the
second quarter of 2007, compared to diluted earnings per share of $0.16 for the
second quarter of last year.
For the six months ended June 30, 2007, PAR Technology Corporation reported
revenues of $97.7 million, an 8% decrease from the $106 million reported one
year ago. The Company also reported a net loss of $2.3 million for the first six
months of 2007 versus net income of $4.3 million reported for the first six
months of 2006. Diluted loss per share was $0.16 for the first six months of
2007 compared to diluted earnings per share of $0.29 reported for the first six
months of 2006.
John W. Sammon, PAR Chairman & CEO commented, "In the second quarter we continue
to experience lower revenues due to ongoing software delays, both internal and
by third parties. However, long-term, we are confident in our business and
believe we will return to profitability when these software issues are resolved.
During this time we will continue our corporate investment strategy to improve
the Company's operating performance going forward as we invest in our business
to expand future opportunities."
Sammon continued, "We continue to believe these strategic investments will
produce value for shareholders that will outweigh the short-term impact. Our
three-pronged investment plan of new hospitality software, international markets
and expanding our distribution channel will allow PAR to be competitive as a
market leader in hospitality technology for the foreseeable future and deliver
the positive results our shareholders are expecting. "
Certain Company information in this release or by its spokespersons from time to
time may contain forward-looking statements. Any statements in this document
that do not describe historical facts are forward-looking statements.
Forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Investors are cautioned
that all forward-looking statements involve risks and uncertainties, including
without limitation, delays in new product introduction, risks in technology
development and commercialization, risks in product development and market
acceptance of and demand for the Company's products, risks of downturns in
economic conditions generally, and in the quick service sector of the restaurant
market specifically, risks of intellectual property rights associated with
competition and competitive pricing pressures, risks associated with foreign
sales and high customer concentration, and other risks detailed in the Company's
filings with the Securities and Exchange Commission.
ABOUT PAR TECHNOLOGY
PAR Technology Corporation is a leading provider of professional services and
enterprise business intelligence software and hardware to the hospitality
industry. PAR develops, markets and supports hardware and software products that
improve the ability of hospitality business professionals to make timely,
fact-based business decisions. The Company is a premier provider of I/T
management solutions to hotel and restaurant companies, with over 45,000
installations worldwide in over 100 countries. PAR is a leader in providing
computer-based system design and engineering services to the Department of
Defense and Federal Government Agencies. PAR Technology Corporation's stock is
traded on the New York Stock Exchange under the symbol PTC. For more information
visit the Company's website at www.partech.com.
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(Unaudited)
June 30, December 31,
2007 2006
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Assets
Current Assets:
Cash and cash equivalents ................... $ 3,320 $ 4,273
Accounts receivable-net ..................... 39,567 46,791
Inventories-net ............................. 38,012 35,948
Income tax refunds .......................... 357 1,103
Deferred income taxes ....................... 6,295 5,139
Other current assets ........................ 2,874 2,737
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Total current assets .................... 90,425 95,991
Property, plant and equipment - net .............. 7,277 7,535
Goodwill ......................................... 26,339 25,734
Intangible assets - net .......................... 10,508 10,695
Other assets ..................................... 3,370 2,841
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$ 137,919 $ 142,796
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ........... $ 542 $ 240
Borrowings under lines of credit ............ 6,043 7,713
Accounts payable ............................ 9,923 12,470
Accrued salaries and benefits ............... 7,978 8,279
Accrued expenses ............................ 2,009 1,861
Customer deposits ........................... 3,969 3,656
Deferred service revenue .................... 12,342 12,254
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Total current liabilities ............... 42,806 46,473
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Long-term debt ................................... 7,357 7,708
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Deferred income taxes ............................ 499 653
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Other long-term liabilities ...................... 2,594 1,879
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Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ............... -- --
Common stock, $.02 par value,
29,000,000 shares authorized;
16,017,285 and 15,980,486 shares issued;
14,364,530 and 14,327,731outstanding ...... 320 320
Capital in excess of par value .............. 38,982 38,602
Retained earnings ........................... 50,830 53,159
Accumulated other comprehensive income (loss) 40 (489)
Treasury stock, at cost, 1,652,755 shares ... (5,509) (5,509)
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Total shareholders' equity .............. 84,663 86,083
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$ 137,919 $ 142,796
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
For the three months For the six months
ended June 30, ended June 30,
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2007 2006 2007 2006
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Net revenues:
Product ...................................... $ 18,320 $ 22,710 $ 35,026 $ 45,730
Service ...................................... 16,100 14,886 31,629 28,631
Contract ..................................... 15,452 15,747 31,053 31,579
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49,872 53,343 97,708 105,940
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Costs of sales:
Product ...................................... 10,699 13,074 21,007 25,872
Service ...................................... 11,886 10,840 24,052 21,550
Contract ..................................... 14,652 14,518 29,206 29,244
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37,237 38,432 74,265 76,666
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Gross margin ........................... 12,635 14,911 23,443 29,274
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Operating expenses:
Selling, general and administrative .......... 9,186 8,194 17,895 16,269
Research and development ..................... 4,387 2,836 8,201 5,735
Amortization of identifiable intangible assets 394 308 784 615
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13,967 11,338 26,880 22,619
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Operating income (loss) ........................... (1,332) 3,573 (3,437) 6,655
Other income, net ................................. 154 218 394 375
Interest expense .................................. (237) (167) (459) (252)
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Income (loss) before provision for income taxes ... (1,415) 3,624 (3,502) 6,778
Benefit (provision) for income taxes .............. 394 (1,286) 1,173 (2,428)
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Net income (loss) ................................. $ (1,021) $ 2,338 $ (2,329) $ 4,350
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Earnings (loss) per share
Basic ........................................ $ (.07) $ .16 $ (.16) $ .31
Diluted ...................................... $ (.07) $ .16 $ (.16) $ .29
Weighted average shares outstanding
Basic ........................................ 14,345 14,173 14,333 14,162
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Diluted ...................................... 14,345 14,776 14,333 14,802
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