fm8kdated102610.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): October 26, 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 October 26, 2010, PAR Technology Corporation issued a press release announcing its results of operation for the quarterly period ending September 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 October 26, 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: October 26, 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 October 26, 2010.






 
 
 


Exhibit 99.1
  Press Release dated October 26, 2010.
 


 

FOR RELEASE:
  New Hartford, NY, October 26, 2010
 
CONTACT:
  Christopher R. Byrnes (315) 738-0600 ext. 226
 
   cbyrnes@partech.com, www.partech.com
 


PAR TECHNOLOGY CORPORATION ANNOUNCES

-2010 THIRD QUARTER RESULTS-
 
Revenues increase 22.6% in the quarter


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

New Hartford, NY- October 26, 2010 -- PAR Technology Corporation (NYSE: PTC), a provider of integrated hardware, software and service solutions to the restaurant, hotel/resort, and hospitality industries, along with information technology services to the U.S. Department of Defense and federal and state government agencies, today reported third quarter 2010 financial results.

For the third quarter ended September 30, 2010, PAR reported revenues of $61.2 million, an increase of 22.6% over the $49.9 million reported for the third quarter of 2009.  The Company reported net income of $538,000 and $0.04 earnings per diluted share for the quarter, compared to the net loss of $(778,000) and loss per diluted share of $(0.05) reported for the third quarter of 2009.

For the first nine months of 2010, PAR reported total revenues of $175.5 million, an increase of 6.5% over the $164.8 million reported for the first nine months of 2009.  Net income for this nine month period was $2.0 million, or $0.13 earnings per diluted share.  The results represent an increase from the net loss of $(293,000) and $(0.02) loss per diluted share reported for the first nine months of 2009.

Commenting on the quarter, John W. Sammon, Chairman and Chief Executive Officer, stated, “PAR made meaningful progress in the third quarter toward our longer-term goals of competitive and financial strength, despite a challenging business environment.  Our restaurant technology business delivered a solid performance this quarter, highlighted by a 49% year over year increase in revenues.   We are building momentum with large chains, notably McDonald’s and Subway Restaurants, both domestically and internationally, and are establishing traction with smaller chains with our PAR EverServ™ point-of-sale offerings.  Given our ongoing investment in next generation software and hardware, we are encouraged that ParTech is well-positioned for the future.”

Sammon went on to state, “We also have been investing heavily in a next generation software platform for our hotel/resort/spa technology business.  While the hospitality markets have encountered economic difficulty, and this business recently has experienced flat revenue while incurring operating losses as a result of their NextGen product initiatives, we remain confident our considerable investments in innovative hospitality solutions will position this business for robust growth.  PAR is a leading vendor to the industry and, with its new software platform, should perform well in the markets they serve.”

“Our Logistics Management Systems business experienced mixed results for the quarter.  Unexpectedly, due to economic pressure certain federal contract funds, which we had received for the prior five years, were not extended as had been expected. This funding loss had a negative impact on consolidated earnings per diluted share of $(0.03) for the third quarter and will impact the upcoming fourth quarter by $(0.02) per diluted share.  On a positive note, this past quarter we announced two strategic relationships.  We partnered with PeopleNet Communications Corporation to offer solutions combining PAR’s trailer management systems with PeopleNet’s onboard computing and communications solutions.  We also were selected by Chiquita Brands for deployment of our trailer management systems on their refrigerated trailer network.”

Conference Call

PAR will hold its quarterly conference call to discuss third quarter 2010 results later today at 4:30 p.m. Eastern Time. This call is being webcast by Thomson and can be accessed at PAR’s web site at www.partech.com. The call will also be available via telephone at 1- 866-362-4831 and reference passcode 61564892.

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 include 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 105 countries worldwide.  PAR is also a leader in providing computer-based system design and engineering services to the U.S. Department of Defense and federal and state 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)

   
September 30,
    
December 31,
  
   
2010
    
2009
  
Assets
Current assets:
            
Cash and cash equivalents
   $ 4,088     $ 3,907  
Accounts receivable-net
     42,951       46,107  
Inventories-net
     41,052       32,867  
Income tax refunds
     1,253       438  
Deferred income taxes
     5,242       6,362  
Other current assets
     3,664       3,235  
Total current assets
     98,250       92,916  
Property, plant and equipment - net
     5,936       6,332  
Deferred income taxes
     1,030       1,202  
Goodwill
     26,762       26,635  
Intangible assets - net
     9,347       7,243  
Other assets
     2,010       1,775  
Total Assets
   $ 143,335     $ 136,103  
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Current portion of long-term debt
   $ 1,635     $ 1,404  
Borrowings under lines of credit
     500       2,000  
Accounts payable
     23,652       12,942  
Accrued salaries and benefits
     8,609       7,607  
Accrued expenses
     3,133       3,868  
Customer deposits
     906       1,782  
Deferred service revenue
     13,701       16,598  
Total current liabilities
     52,136       46,201  
Long-term debt
     3,228       4,455  
Other long-term liabilities
     2,551       2,212  
Shareholders’ Equity:
                
Preferred stock, $.02 par value,
                
1,000,000 shares authorized
  
─
    
─
  
Common stock, $.02 par value,
                
29,000,000 shares authorized;
                
16,741,368 and 16,449,695 shares issued;
                
         15,034,084 and 14,796,940 outstanding
     335       329  
Capital in excess of par value
     42,134       41,382  
Retained earnings
     49,451       47,482  
Accumulated other comprehensive loss
     (668 )     (449 )
Treasury stock, at cost, 1,707,284 and 1,652,755 shares
     (5,832 )     (5,509 )
Total shareholders’ equity
     85,420       83,235  
Total Liabilities and Shareholders’ Equity
   $ 143,335     $ 136,103  



 
 
 

PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
   
For the three months
ended September 30,
    
For the nine months
ended September 30,
  
   
2010
    
2009
    
2010
    
2009
  
Net revenues:
                        
Product
   $ 27,850     $ 15,222     $ 72,185     $ 52,637  
Service
     17,268       17,011       53,369       56,057  
Contract
     16,053       17,681       49,950       56,147  
      61,171       49,914       175,504       164,841  
Costs of sales:
                                
Product
     17,865       10,025       47,256       34,578  
Service
     12,192       11,886       36,141       39,747  
Contract
     15,041       16,598       46,854       53,062  
      45,098       38,509       130,251       127,387  
Gross margin
     16,073       11,405       45,253       37,454  
Operating expenses:
                                
Selling, general and administrative
     9,995       8,579       29,316       26,821  
Research and development
     4,826       3,771       12,592       10,127  
Amortization of identifiable intangible assets
     234       371       703       1,104  
      15,055       12,721       42,611       38,052  
                                 
Operating income (loss)
     1,018       (1,316 )     2,642       (598 )
Other income, net
     97       12       516       274  
Interest expense
     (157 )     (106 )     (299 )     (328 )
Income (loss) before provision for income taxes
     958       (1,410 )     2,859       (652 )
(Provision) benefit for income taxes
     (420 )     632       (890 )     359  
Net income (loss)
   $ 538     $ (778 )   $ 1,969     $ (293 )
Earnings (loss) per share
                                
Basic
   $ .04     $ (.05 )   $ .13     $ (.02 )
Diluted
   $ .04     $ (.05 )   $ .13     $ (.02 )
Weighted average shares outstanding
                                
Basic
     14,879       14,544       14,794       14,506  
Diluted
     15,048       14,544       15,009       14,506