form8kdated072710.htm
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 27, 2010



PAR TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)



Delaware
1-09720
16-1434688
(State or other jurisdiction of organization)
(Commission File Number)
(I.R.S. Employer incorporation or Identification Number)


PAR Technology Park
8383 Seneca Turnpike
New Hartford, NY
  
 
 
13413-4991
(Address of principal executive offices)
  
(Zip Code)



Registrant's telephone number, including area code: (315) 738-0600


Not Applicable
 (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 27, 2010, PAR Technology Corporation issued a press release announcing its results of operation for the quarterly period ending June 30, 2010.  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 27, 2010.




 
 
 


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
   
(Registrant)
 
 
 
 
 
 
 
 
     
Date:  July 27, 2010
  
/s/Ronald J. Casciano
   
Ronald J. Casciano
   
Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer





 
 
 


EXHIBIT INDEX


Exhibit Number
Description
 
 
99.1
 
Press Release dated July 27, 2010.






 
 
 


Exhibit 99.1
  Press Release dated July 27, 2010.
 


 

FOR RELEASE:
  New Hartford, NY, July 27, 2010
 
CONTACT:
  Christopher R. Byrnes (315) 738 - 0600 ext. 226
 
   cbyrnes@partech.com, www.partech.com
 


PAR TECHNOLOGY CORPORATION

-REPORTS SECOND QUARTER RESULTS-


NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)

New Hartford, NY--July 27, 2010--PAR Technology Corporation (NYSE: PTC) today announced results for the second quarter ended June 30, 2010.

PAR reported second quarter revenues of $56.2 million, a 3.2% increase from the $54.5 million reported in the same period a year ago. Net income of $849,000 was reported for the second quarter 2010, compared with net income of $238,000 in the second quarter of 2009.  Diluted earnings per share were $0.06 for the second quarter of 2010, compared to diluted earnings per share of $0.02 for the second quarter of last year.

For the six months ended June 30, 2010, PAR reported revenues of $114.3 million versus the $114.9 million reported one year ago.  The Company reported net income of $1.4 million for the first six months of 2010 versus net income of $485,000 reported for the first six months of 2009 that resulted in earnings per diluted share of $0.10 in 2010 and $0.03 per diluted share over the same period in 2009.

John W. Sammon, PAR Chairman & CEO commented, “With increasing demand for a number of our hospitality technology solutions and improving business operations, our team delivered a solid quarter lead by our restaurant solutions business which turned in strong results contributing to the improved financial performance this quarter.  We are pleased with the improved results to date, yet we remain focused on key initiatives around customer acceptance and execution. Our longer-term goals continue to be achieving market leadership and sustained profitability.  We believe by accomplishing these goals, improved shareholder value will result.”

Sammon added, “We remain confident in our strategy.  The investments we are making in our NextGen product portfolios for hotels and restaurants will secure our strong position in hospitality technology, expand our addressable markets and accelerate market traction in these improving segments.”  With strong acceptance of our new products coupled with the leadership provided by our new management teams, we can anticipate continued future improvement.”

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 creates and markets products that help hospitality operators around the world to better manage money, materials, people and the guest experience. PAR has provided hardware, software and services to the world's largest restaurant chains and their franchisees for almost 30 years.  Today the Company's extensive offering includes technology solutions for the full spectrum of hospitality operations, from boutique hotels and independent table service restaurants to international QSR chains, all backed by PAR’s global service network.  The Company has over 50,000 installations in 110 countries worldwide.  PAR is also a leader in providing computer-based system design and engineering services to the Department of Defense and various federal agencies.  Through PAR Logistics Management Systems, the Company is a provider of best of breed integrated solutions for shipping asset management and tracking.  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.
 
###


 
 
 



PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 (in thousands, except share amounts)
(unaudited)

   
June 30,
    
December 31,
  
   
2010
    
2009
  
Assets
Current assets:
            
Cash and cash equivalents
   $ 3,943     $ 3,907  
Accounts receivable-net
     40,496       46,107  
Inventories-net
     34,532       32,867  
Income tax refunds
     1,512       438  
Deferred income taxes
     5,664       6,362  
Other current assets
     4,645       3,235  
Total current assets
     90,792       92,916  
Property, plant and equipment - net
     6,017       6,332  
Deferred income taxes
     1,225       1,202  
Goodwill
     26,642       26,635  
Intangible assets - net
     8,491       7,243  
Other assets
     1,836       1,775  
Total Assets
   $ 135,003     $ 136,103  
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Current portion of long-term debt
   $ 1,558     $ 1,404  
Borrowings under lines of credit
     700       2,000  
Accounts payable
     15,130       12,942  
Accrued salaries and benefits
     8,292       7,607  
Accrued expenses
     2,710       3,868  
Customer deposits
     1,237       1,782  
Deferred service revenue
     14,613       16,598  
Total current liabilities
     44,240       46,201  
Long-term debt
     3,638       4,455  
Other long-term liabilities
     2,315       2,212  
Shareholders’ Equity:
                
Preferred stock, $.02 par value,
                
1,000,000 shares authorized
  
─
    
─
  
Common stock, $.02 par value,
                
29,000,000 shares authorized;
                
16,603,721 and 16,449,695 shares issued;
                
         14,950,966 and 14,796,940 outstanding
     332       329  
Capital in excess of par value
     41,737       41,382  
Retained earnings
     48,913       47,482  
Accumulated other comprehensive loss
     (663 )     (449 )
Treasury stock, at cost, 1,652,755 shares
     (5,509 )     (5,509 )
Total shareholders’ equity
     84,810       83,235  
Total Liabilities and Shareholders’ Equity
   $ 135,003     $ 136,103  


 
 
 

PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)


   
For the three months
ended June 30,
    
For the six months
ended June 30,
  
   
2010
    
2009
    
2010
    
2009
  
Net revenues:
                        
Product
   $ 23,084     $ 17,178     $ 44,335     $ 37,415  
Service
     16,862       19,065       36,101       39,046  
Contract
     16,268       18,216       33,897       38,466  
      56,214       54,459       114,333       114,927  
Costs of sales:
                                
Product
     15,006       11,485       29,391       24,553  
Service
     10,901       13,385       23,949       27,862  
Contract
     15,218       17,227       31,813       36,463  
      41,125       42,097       85,153       88,878  
Gross margin
     15,089       12,362       29,180       26,049  
Operating expenses:
                                
Selling, general and administrative
     9,781       8,647       19,321       18,242  
Research and development
     4,321       3,048       7,766       6,357  
Amortization of identifiable intangible assets
     235       368       469       733  
      14,337       12,063       27,556       25,332  
                                 
Operating income
     752       299       1,624       717  
Other income, net
     278       156       419       263  
Interest expense
     (71 )     (82 )     (142 )     (222 )
Income before provision for income taxes
     959       373       1,901       758  
Provision for income taxes
     (110 )     (135 )     (470 )     (273 )
Net income
   $ 849     $ 238     $ 1,431     $ 485  
Earnings per share
                                
Basic
   $ .06     $ .02     $ .10     $ .03  
Diluted
   $ .06     $ .02     $ .10     $ .03  
Weighted average shares outstanding
                                
Basic
     14,800       14,501       14,751       14,487  
Diluted
     15,031       14,787       14,993       14,757