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 26, 2007
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 26, 2007, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending March
31, 2007. 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 26, 2007.
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 26, 2007
/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 26, 2007.
Exhibit 99.1 Press Release dated April 26, 2007.
RELEASE: NEW HARTFORD, NY, April 26, 2007
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION
-REPORTS FIRST QUARTER RESULTS-
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY--April 26, 2007--PAR Technology Corporation (NYSE:PTC) today
announced results from operations for the first quarter ended March 31, 2007.
PAR reported first quarter revenues of $47.8 million, a 9% decrease over the
$52.6 million reported in the same period a year ago. A net loss for the first
quarter of $1.3 million was reported compared with net income of $2 million in
the first quarter of 2006. The Company reported diluted loss per share of $0.09
for the first quarter of 2007, compared to diluted earnings per share of $0.14
for the first quarter of last year.
John W. Sammon, PAR Chairman and CEO commented, "PAR's first-quarter results
primarily reflected lower revenues and operating profits for the Hospitality
segment of our business. Profits were impacted by revenue weakness in our Quick
Service restaurant segment, caused by internal and third party software
development delays. Our Government business performed on plan with a small
decrease in revenues year over year. With new contract starts, we expect to see
this segment return to normal growth trends and remain on plan for the year."
Sammon added, "We are disappointed that 2007 has started out weaker than
anticipated and feel that the remainder of this year will be a challenge for our
Company. However, we remain confident in the long-term strategy we have
initiated for our business. That strategy calls for the continued investment
into our SIVA software development program, increasing our distribution
capabilities with dealers and resellers and expanding our business in
international markets, specifically China and the entire Pacific Rim. Through
the continued investment in these initiatives we are providing a strong
foundation for our future business."
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
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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 45,000
installations worldwide in over 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,
2007 2006
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Assets
Current assets:
Cash and cash equivalents ............................. $ 2,484 $ 4,273
Accounts receivable-net ............................... 42,938 46,791
Inventories-net ....................................... 38,841 35,948
Income tax refunds .................................... 1,573 1,103
Deferred income taxes ................................. 5,323 5,139
Other current assets .................................. 3,047 2,737
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Total current assets .............................. 94,206 95,991
Property, plant and equipment - net ........................ 7,412 7,535
Goodwill ................................................... 25,811 25,734
Intangible assets - net .................................... 10,596 10,695
Other assets ............................................... 3,188 2,841
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$ 141,213 $ 142,796
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ..................... $ 387 $ 240
Borrowings under lines of credit ...................... 7,870 7,713
Accounts payable ...................................... 11,812 12,470
Accrued salaries and benefits ......................... 6,724 8,279
Accrued expenses ...................................... 2,155 1,861
Customer deposits ..................................... 3,718 3,656
Deferred service revenue .............................. 12,933 12,254
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Total current liabilities ......................... 45,599 46,473
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Long-term debt ............................................. 7,535 7,708
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Deferred income taxes ...................................... 786 653
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Other long-term liabilities ................................ 2,298 1,879
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Commitments and contingent liabilities Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ......................... -- --
Common stock, $.02 par value,
29,000,000 shares authorized;
16,014,135 and 15,980,486 shares issued;
14,361,380 and 14,327,731outstanding ................ 320 320
Capital in excess of par value ........................ 38,906 38,602
Retained earnings ..................................... 51,851 53,159
Accumulated other comprehensive loss .................. (573) (489)
Treasury stock, at cost, 1,652,755 shares ............. (5,509) (5,509)
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Total shareholders' equity ......................... 84,995 86,083
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$ 141,213 $ 142,796
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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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2007 2006
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Net revenues:
Product ...................................... $ 16,706 $ 23,020
Service ...................................... 15,529 13,745
Contract ..................................... 15,601 15,832
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47,836 52,597
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Costs of sales:
Product ...................................... 10,308 12,798
Service ...................................... 12,166 10,710
Contract ..................................... 14,554 14,726
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37,028 38,234
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Gross margin ........................... 10,808 14,363
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Operating expenses:
Selling, general and administrative .......... 8,709 8,075
Research and development ..................... 3,814 2,899
Amortization of identifiable intangible assets 390 307
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12,913 11,281
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Operating income (loss) .......................... (2,105) 3,082
Other income, net ................................. 240 157
Interest expense .................................. (222) (85)
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Income (loss) before provision for income taxes ... (2,087) 3,154
Provision (benefit) for income taxes .............. 779 (1,142)
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Net income (loss) ................................ $ (1,308) $ 2,012
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Earnings (loss) per share
Basic ........................................ $ (.09) $ .14
Diluted ...................................... $ (.09) $ .14
Weighted average shares outstanding
Basic ........................................ 14,320 14,151
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Diluted ...................................... 14,320 14,806
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