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, 2009
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 26, 2009, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
September 30, 2009. 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, 2009.
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 26, 2009
/s/Ronald J. Casciano
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Ronald J. Casciano
Vice President, Chief Financial Officer,
Treasurer and Chief Accounting Officer
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press Release dated October 26, 2009.
Exhibit 99.1 Press Release dated October 26, 2009.
RELEASE: NEW HARTFORD, NY, October 26, 2009
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 26, 2009 -- 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 United States Government, today reported third
quarter financial results.
For the third quarter ended September 30, 2009, PAR Technology Corporation
reported revenues of $49.9 million compared to $58 million in the third quarter
2008, a decrease of 13.9%. A net loss of $778,000 was reported for the period
compared to net income of $828,000 in the third quarter last year. The Company
reported diluted loss per share of $0.05 for this past quarter, compared to the
diluted earnings per share of $0.06 reported for the same period a year earlier.
For the nine months ended September 30, 2009, PAR Technology Corporation
reported revenues of $164.8 million, a 1.5% decrease when compared to the $167.3
million reported one year ago. The Company also reported a net loss of $293,000
in the first nine months of 2009 versus net income of $757,000 for the first
nine months of 2008. Diluted loss per share for the first nine months of 2009
was reported at $0.02, compared to diluted earnings per share of $0.05 reported
for the same period in 2008.
"Our third-quarter results reflect the effects of the recession and rising
unemployment rates across the globe. While some economic indicators have shown
improvement, the confidence level of the hospitality market continues to reflect
the uncertainty of the current business environment. Simultaneously, certain
customer accounts continue to have difficulty in obtaining access to capital,"
commented John W. Sammon, Chairman and CEO of PAR Technology. "While we are
disappointed with our most recent quarterly results, we are never-the-less
optimistic about our core business and future opportunities across all of our
business segments. We are actively reducing costs which will not impair our
ability to execute on our long term strategic plans. We are confident that our
business will improve as credit eases and the industry confidence level
improves. As we plan for 2010, we see a greatly improving pipeline of business
which will restore both top line revenue along with earnings and we are
committed to reducing expenses while investing in our future."
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 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.
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)
September 30, December 31,
2009 2008
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Assets
Current assets:
Cash and cash equivalents ....................... $ 4,859 $ 6,227
Accounts receivable-net ......................... 37,147 53,582
Inventories-net ................................. 40,125 41,132
Income tax refunds .............................. 767 208
Deferred income taxes ........................... 5,786 5,301
Other current assets ............................ 3,193 3,588
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Total current assets ........................ 91,877 110,038
Property, plant and equipment - net .................. 6,523 6,879
Deferred income taxes ................................ 647 1,525
Goodwill ............................................. 26,383 25,684
Intangible assets - net .............................. 7,366 8,251
Other assets ......................................... 1,721 1,611
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Total Assets .............................. $ 134,517 $ 153,988
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ............... $ 1,402 $ 1,079
Borrowings under lines of credit ................ 3,000 8,800
Accounts payable ................................ 8,834 15,293
Accrued salaries and benefits ................... 7,866 8,360
Accrued expenses ................................ 3,144 3,962
Customer deposits ............................... 2,098 6,157
Deferred service revenue ........................ 13,582 16,318
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Total current liabilities ................... 39,926 59,969
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Long-term debt ....................................... 4,863 5,852
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Other long-term liabilities .......................... 2,092 1,910
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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;
16,349,845 and 16,189,718 shares issued;
14,697,090 and 14,536,963 outstanding ......... 327 324
Capital in excess of par value .................. 40,975 40,173
Retained earnings ............................... 52,375 52,668
Accumulated other comprehensive loss ............ (532) (1,399)
Treasury stock, at cost, 1,652,755 shares ....... (5,509) (5,509)
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Total shareholders' equity ................. 87,636 86,257
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Total Liabilities and Shareholders' Equity $ 134,517 $ 153,988
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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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2009 2008 2009 2008
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Net revenues:
Product ...................................... $ 15,222 $ 20,918 $ 52,637 $ 58,566
Service ...................................... 17,011 19,155 56,057 53,299
Contract ..................................... 17,681 17,894 56,147 55,443
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49,914 57,967 164,841 167,308
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Costs of sales:
Product ...................................... 10,025 12,016 34,578 34,053
Service ...................................... 11,886 14,466 39,747 39,826
Contract ..................................... 16,598 16,924 53,062 52,477
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38,509 43,406 127,387 126,356
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Gross margin ........................... 11,405 14,561 37,454 40,952
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Operating expenses:
Selling, general and administrative .......... 8,579 9,121 26,821 26,924
Research and development ..................... 3,771 3,560 10,127 11,571
Amortization of identifiable intangible assets 371 388 1,104 1,167
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12,721 13,069 38,052 39,662
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Operating income (loss) ........................... (1,316) 1,492 (598) 1,290
Other income, net ................................. 12 216 274 759
Interest expense .................................. (106) (275) (328) (745)
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Income (loss) before provision for income taxes ... (1,410) 1,433 (652) 1,304
(Provision) benefit for income taxes .............. 632 (605) 359 (547)
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Net income (loss) ................................. $ (778) $ 828 $ (293) $ 757
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Earnings (loss) per share
Basic ........................................ $ (0.05) $ .06 $ (0.02) $ .05
Diluted ...................................... $ (0.05) $ .06 $ (0.02) $ .05
Weighted average shares outstanding
Basic ........................................ 14,544 14,440 14,506 14,404
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Diluted ...................................... 14,832 14,823 14,789 14,787
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