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): October 23, 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 October 23, 2007, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
September 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 October 23, 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: October 23, 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 October 23, 2007.
Exhibit 99.1 Press Release dated October 23, 2007.
RELEASE: NEW HARTFORD, NY, October 23, 2007
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS THIRD QUARTER RESULTS
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY- October 23, 2007 PAR Technology Corporation (NYSE: PTC), a
provider of integrated hardware, software and service solutions to the
restaurant, hotel/resort, hospitality industries and information-technology
services to the United States Government, today reported third quarter financial
results.
For the third quarter ended September 30, 2007, PAR Technology Corporation
reported revenues of $51.6 million compared to $48.5 million in the third
quarter 2006, an increase of 6.3%. A net loss was reported of $862,000, down
from the $550,000 earned in the third quarter one year ago. The Company reported
diluted loss per share of $0.06 for this past quarter, compared to the diluted
earnings per share of $0.04 reported for the same period a year earlier.
For the nine months ended September 30, 2007, PAR Technology Corporation
reported revenues of $149.3 million, a 3.4% decrease when compared to the $154.5
million reported one year ago. The Company also reported a net loss of $3.2
million in the first nine months of 2007 versus net income of $4.9 million for
the first nine months of 2006. Diluted loss per share for the first nine months
of 2007 was reported at $0.22, compared to diluted net income per share of $0.33
reported for the same period in 2006.
John W. Sammon, Chairman and CEO of PAR Technology commented, "Generally
speaking, the Q3 numbers were within expectations. We continued to make solid
strategic progress this quarter in our ongoing internal investment strategy.
This strategy requires effort and resources but when completed will result in a
stronger company that is more prepared to compete on a global basis in our
industry." Sammon went on to say, "While not satisfied with our third quarter
results we have returned to growing revenues which highlights the resilience of
our franchise in hospitality technology. With a broad array of technology
products designed for the hospitality industry, we believe PAR is positioned to
capitalize on evolving market demand. Our focus remains on the design and
delivery of innovative products, the addition of channel partners, and producing
global operational excellence."
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 develops, markets and supports hardware and software
products that improve the ability of restaurant, hotel/resort and retail
business professionals to make timely, fact-based business decisions. The
Company is the world's largest supplier of Point-of-Sale systems to the quick
service restaurant market with over 45,000 systems installed in over 105
countries. In addition 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 additional information visit PAR's website at
www.partech.com.
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)
September 30, December 31,
2007 2006
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Assets
Current assets:
Cash and cash equivalents ....................... $ 4,506 $ 4,273
Accounts receivable-net ......................... 39,398 46,791
Inventories-net ................................. 38,282 35,948
Income tax refunds .............................. 983 1,103
Deferred income taxes ........................... 6,355 5,139
Other current assets ............................ 3,328 2,737
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Total current assets ........................ 92,852 95,991
Property, plant and equipment - net .................. 7,215 7,535
Goodwill ............................................. 26,767 25,734
Intangible assets - net .............................. 10,163 10,695
Other assets ......................................... 3,526 2,841
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$ 140,523 $ 142,796
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ............... $ 694 $ 240
Borrowings under lines of credit ................ 5,421 7,713
Accounts payable ................................ 11,463 12,470
Accrued salaries and benefits ................... 7,820 8,279
Accrued expenses ................................ 2,791 1,861
Customer deposits ............................... 4,589 3,656
Deferred service revenue ........................ 12,413 12,254
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Total current liabilities ................... 45,191 46,473
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Long-term debt ....................................... 7,182 7,708
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Deferred income taxes ................................ 1,080 653
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Other long-term liabilities .......................... 2,878 1,879
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Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ................... -- --
Common stock, $.02 par value,
29,000,000 shares authorized;
16,031,035 and 15,980,486 shares issued;
14,378,280 and 14,327,731outstanding ......... 321 320
Capital in excess of par value .................. 39,048 38,602
Retained earnings ............................... 49,968 53,159
Accumulated other comprehensive income (loss) ... 364 (489)
Treasury stock, at cost, 1,652,755 shares ....... (5,509) (5,509)
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Total shareholders' equity ................... 84,192 86,083
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$ 140,523 $ 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 nine months
ended September 30, ended September 30,
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2007 2006 2007 2006
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Net revenues:
Product ...................................... $ 18,066 $ 17,975 $ 53,092 $ 63,705
Service ...................................... 17,006 15,092 48,635 43,723
Contract ..................................... 16,505 15,467 47,558 47,046
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51,577 48,534 149,285 154,474
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Costs of sales:
Product ...................................... 10,681 10,370 31,688 36,242
Service ...................................... 13,238 11,387 37,290 32,937
Contract ..................................... 15,256 14,600 44,462 43,844
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39,175 36,357 113,440 113,023
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Gross margin ................................. 12,402 12,177 35,845 41,451
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Operating expenses:
Selling, general and administrative .......... 8,581 8,241 26,476 24,510
Research and development ..................... 4,562 2,613 12,763 8,348
Amortization of identifiable intangible assets 397 307 1,181 922
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13,540 11,161 40,420 33,780
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Operating income (loss) ........................... (1,138) 1,016 (4,575) 7,671
Other income, net ................................. 350 62 744 437
Interest expense .................................. (310) (206) (769) (458)
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Income (loss) before provision for income taxes ... (1,098) 872 (4,600) 7,650
Benefit (provision) for income taxes .............. 236 (322) 1,409 (2,750)
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Net income (loss)
$ (862) $ 550 $ (3,191) $ 4,900
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Earnings (loss) per share
Basic ........................................ $ (.06) $ .04 $ (.22) $ .35
Diluted ...................................... $ (.06) $ .04 $ (.22) $ .33
Weighted average shares outstanding
Basic ........................................ 14,351 14,181 14,340 14,168
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Diluted ...................................... 14,351 14,646 14,340 14,751
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