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): April 27, 2006
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 April 27, 2006, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending March
31, 2006. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.
99.1 Press Release dated April 27, 2006.
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: April 27, 2006
/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 April 27, 2006.
Exhibit 99.1 Press Release dated April 27, 2006.
RELEASE: NEW HARTFORD, NY, April 27, 2006
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION
-REPORTS RECORD FIRST QUARTER RESULTS-
|X| RECORD REVENUES FOR 1ST QUARTER
|X| REVENUES RISE 8%
|X| EPS GROWS 56%
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY--April 27, 2006--PAR Technology Corporation (NYSE:PTC) today
announced results from operations for the first quarter ended March 31, 2006.
PAR reported record first quarter revenues of $52.6 million, an 8% increase over
the $48.8 million reported in the same period a year ago. Net income reported
for the first quarter was $2 million compared with net income of $1.3 million in
the first quarter of 2005, a 54% increase. The Company reported diluted earnings
per share of $0.14 for the first quarter of 2006, an increase of 56% when
compared to diluted earnings per share of $0.09 for the first quarter of last
year. In addition, PAR began expensing stock options in accordance with
Statement of Financial Accounting Standards No. 123R effective in the first
quarter of 2006. The 2006 first quarter results include non-cash stock-based
compensation expense of $43,000, compared to no such expense in the first
quarter of 2005.
John W. Sammon, PAR Chairman and CEO commented, "The ongoing success PAR has
achieved shows that we are building one of the strongest brands in the
hospitality technology industry. Our team continues to execute our customer
centric-strategies, yielding the results reported. These results validate our
belief that the buyers of PAR's premium products desire an integrated full
solution approach to enhance their technology requirements."
Sammon concluded, "We continue to build our business based on our plan for
sustainable growth. PAR continues to broaden its reach of our participation in
the hospitality market, with the addition of new customers and the development
of products for related markets that incorporate PAR's technologies."
Statements in this release or by the Company's 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 hospitality technology 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 40,000
installations worldwide in 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)
March 31, December 31,
2006 2005
Assets --------- ----------
Current assets:
Cash and cash equivalents ..................... $ 2,322 $ 4,982
Accounts receivable-net ....................... 46,495 40,781
Inventories-net ............................... 29,922 29,562
Income tax refunds ............................ 1,528 879
Deferred income taxes ......................... 4,235 5,690
Other current assets .......................... 2,878 2,598
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Total current assets ...................... 87,380 84,492
Property, plant and equipment - net ................ 8,009 8,044
Goodwill ........................................... 20,620 20,622
Intangible assets - net ............................ 9,462 9,904
Other assets ....................................... 2,438 2,087
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$ 127,909 $ 125,149
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ............. $ 79 $ 76
Borrowings under lines of credit .............. 7,123 3,500
Accounts payable .............................. 11,384 12,703
Accrued salaries and benefits ................. 7,626 9,725
Accrued expenses .............................. 2,471 2,352
Customer deposits ............................. 3,367 3,973
Deferred service revenue ...................... 11,495 11,332
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Total current liabilities ................. 43,545 43,661
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Long-term debt ..................................... 1,926 1,948
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Deferred income taxes .............................. 441 201
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Other long-term liabilities ........................ 1,238 847
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Commitments and contingent liabilities
Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ................. -- --
Common stock, $.02 par value,
19,000,000 shares authorized;
15,935,924 and 15,914,958 shares issued;
14,157,620 and 14,136,654 outstanding ....... 319 318
Capital in excess of par value ................ 37,458 37,271
Retained earnings ............................. 49,450 47,442
Accumulated other comprehensive loss .......... (540) (611)
Treasury stock, at cost, 1,778,304 shares ..... (5,928) (5,928)
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Total shareholders' equity .................. 80,759 78,492
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$ 127,909 $ 125,149
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
(unaudited)
For the three months
ended March 31,
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2006 2005
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Net revenues:
Product ..................................... $ 23,020 $ 21,001
Service ..................................... 13,745 13,402
Contract .................................... 15,832 14,354
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52,597 48,757
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Costs of sales:
Product ..................................... 12,798 12,876
Service ..................................... 10,710 10,447
Contract .................................... 14,726 13,565
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38,234 36,888
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Gross margin ..................................... 14,363 11,869
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Operating expenses:
Selling, general and administrative ......... 8,075 7,393
Research and development .................... 2,899 2,278
Amortization of identifiable ................ 307 246
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intangible assets ......................... 11,281 9,917
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Operating income ................................. 3,082 1,952
Other income, net ................................ 157 233
Interest expense ................................. (85) (78)
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Income before provision for income taxes ......... 3,154 2,107
Provision for income taxes ....................... (1,142) (801)
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Net income ....................................... $ 2,012 $ 1,306
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Earnings per share:
Basic ....................................... $ .14 $ .10
Diluted ..................................... $ .14 $ .09
Weighted average shares outstanding
Basic ....................................... 14,151 13,431
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Diluted ..................................... 14,806 14,312
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