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 27, 2008
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 27, 2008, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
September 30, 2008. 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 27, 2008.
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 27, 2008
/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 27, 2008.
Exhibit 99.1 Press Release dated October 27, 2008.
FOR RELEASE: NEW HARTFORD, NY, October 27, 2008
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS THIRD QUARTER RESULTS
-- Revenues of $58 million, a 12.4% increase over the third quarter 2007
-- Earnings per diluted share (EPS) of $0.06 vs. a $0.06 loss per diluted
share for Q3 2007
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY- October 27, 2008 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, 2008, PAR Technology Corporation
reported revenues of $58 million compared to $51.6 million in the third quarter
2007, an increase of 12.4%. Net income of $828,000 was reported for the period
compared to a net loss of $862,000 in the third quarter last year. The Company
reported diluted earnings per share of $0.06 for this past quarter, compared to
the diluted loss per share of $0.06 reported for the same period a year earlier.
For the nine months ended September 30, 2008, PAR Technology Corporation
reported revenues of $167.3 million, a 12.1% increase when compared to the
$149.3 million reported one year ago. The Company also reported net income of
$757,000 in the first nine months of 2008 versus a net loss of $3.2 million for
the first nine months of 2007. Diluted earnings per share for the first nine
months of 2008 was reported at $0.05, compared to diluted loss per share of
$0.22 reported for the same period in 2007.
"Overall, our businesses performed well in the third quarter as we navigated
through uncertain economic environments. Revenues were driven by strong sales to
our global quick serve restaurant accounts as well as to our hotel and spa
customers. Our government revenues were up year over year due to new wins in the
IT outsourcing sector," said John W. Sammon, Chairman and CEO of PAR Technology.
"Our performance during difficult economic circumstances reflects the relevance
of the business lines we have chosen to be in and the geographic priorities we
have set. We will continue to monitor economic conditions for the foreseeable
future but will not alter our concentration on PAR's longer-term growth
initiatives of expanding our global reach, increasing revenue growth in the
channel space and creating innovative software and technology products."
EARNINGS CONFERENCE CALL
PAR Technology Chairman and CEO John W. Sammon and Chief Financial Officer
Ronald J. Casciano will discuss the Company's recent performance on a two-way
conference call with investors at 10:00 a.m. Eastern today. Information for
participating on that call can be found on the Company's website at
www.partech.com.
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 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,
2008 2007
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Assets
Current assets:
Cash and cash equivalents ......................... $ 2,892 $ 4,431
Accounts receivable-net ........................... 46,865 43,608
Inventories-net ................................... 42,638 40,319
Income tax refunds ................................ 1,065 521
Deferred income taxes ............................. 5,298 5,630
Other current assets .............................. 3,892 3,370
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Total current assets .......................... 102,650 97,879
Property, plant and equipment - net .................... 7,169 7,669
Deferred income taxes .................................. 746 503
Goodwill ............................................... 26,618 26,998
Intangible assets - net ................................ 8,840 9,899
Other assets ........................................... 1,846 3,570
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Total Assets ............................. $ 147,869 $ 146,518
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ................. $ 1,110 $ 772
Borrowings under lines of credit .................. 7,541 2,500
Accounts payable .................................. 14,448 16,978
Accrued salaries and benefits ..................... 8,942 9,919
Accrued expenses .................................. 4,073 3,860
Customer deposits ................................. 3,779 3,898
Deferred service revenue .......................... 13,825 14,357
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Total current liabilities ..................... 53,718 52,284
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Long-term debt ......................................... 6,179 6,932
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Other long-term liabilities ............................ 2,167 2,315
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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;
16,186,718 and 16,047,818 shares issued;
14,533,963 and 14,395,063 outstanding ........... 324 321
Capital in excess of par value .................... 40,055 39,252
Retained earnings ................................. 51,208 50,451
Accumulated other comprehensive (loss) income ..... (273) 472
Treasury stock, at cost, 1,652,755 shares ......... (5,509) (5,509)
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Total shareholders' equity .................... 85,805 84,987
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Total Liabilities and Shareholders' Equity $ 147,869 $ 146,518
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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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2008 2007 2008 2007
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Net revenues:
Product ...................................... $ 20,918 $ 18,066 $ 58,566 $ 53,092
Service ...................................... 19,155 17,006 53,299 48,635
Contract ..................................... 17,894 16,505 55,443 47,558
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57,967 51,577 167,308 149,285
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Costs of sales:
Product ...................................... 12,016 10,681 34,053 31,688
Service ...................................... 14,466 13,238 39,826 37,290
Contract ..................................... 16,924 15,256 52,477 44,462
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43,406 39,175 126,356 113,440
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Gross margin ........................... 14,561 12,402 40,952 35,845
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Operating expenses:
Selling, general and administrative .......... 9,121 8,581 26,924 26,476
Research and development ..................... 3,560 4,562 11,571 12,763
Amortization of identifiable intangible assets 388 397 1,167 1,181
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13,069 13,540 39,662 40,420
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Operating income (loss) ........................... 1,492 (1,138) 1,290 (4,575)
Other income, net ................................. 216 350 759 744
Interest expense .................................. (275) (310) (745) (769)
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Income (loss) before provision for income taxes ... 1,433 (1,098) 1,304 (4,600)
(Provision) benefit for income taxes .............. (605) 236 (547) 1,409
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Net income (loss) ................................. $ 828 $ (862) $ 757 $ (3,191)
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Earnings (loss) per share
Basic ........................................ $ .06 $ (.06) $ .05 $ (.22)
Diluted ...................................... $ .06 $ (.06) $ .05 $ (.22)
Weighted average shares outstanding
Basic ........................................ 14,440 14,351 14,404 14,340
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Diluted ...................................... 14,823 14,351 14,787 14,340
========= ========= ========= =========