Welcome!

News Feed Item

PAR Technology Corporation Announces 2014 First Quarter Results

PAR Technology Corporation (NYSE:PAR) today announced results for the first quarter ended March 31, 2014. The Company reported first quarter revenues of $56.5 million and a net loss from continuing operations of $989,000 or $0.06 loss per share. This compares with fiscal 2013 first quarter revenue of $66.7 million and a net loss from continuing operations of $369,000 or $0.02 loss per share. On a non-GAAP basis, the Company’s net loss from continuing operations for the first quarter of 2014 was $644,000 or $0.04 loss per share. This compares to non-GAAP net income from continuing operations of $178,000 or $0.01 per diluted share during the first quarter of 2013. See the attached Reconciliation of GAAP to Non-GAAP Financial Results table for further information on these non-GAAP results.

“Our first quarter results reflect a decline in revenue as we periodically experience volatility regarding the timing of product deployments with certain major customers within our Hospitality business, as well as volatility associated with task orders on our ISR contracts with the U.S. Department of Defense. Despite these revenue challenges, we have continued to execute upon cost reduction initiatives to help manage through this volatility,” said PAR Technology President and Chief Executive Officer Ronald J. Casciano. “Although our first quarter results were challenging, we have continued our investment in new technologies associated with both our Hospitality and Government businesses. While these investments impact profitability, they are essential for the Company’s long-term growth.”

Certain Company information in this release or statements made 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 Corporation

PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PAR. PAR’s Hospitality segment has been a leading provider of restaurant and retail technology for more than 30 years. PAR offers technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. PAR’s Hospitality business also provides hotel management systems with a complete suite of powerful tools for guest management, recreation management, and timeshare/condo management. In addition, PAR offers the spa industry a leading management application specifically designed to support the unique needs of the resort spa and day spa markets, a rapidly growing hospitality segment. Products from PAR also can be found in retailers, cinemas, cruise lines, stadiums and food service companies. PAR’s Government segment is a leader in providing computer-based system design, engineering and technical services to the Department of Defense and various federal agencies. Visit www.partech.com for more information.

There will be a conference call at 10:00 a.m. eastern time on May 1, 2014, during which the Company’s management will discuss the financial results for the first quarter of 2014. If you would like to participate in this conference please call 866-515-2915 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 41418004. Individual & Institutional Investors will have the opportunity to listen to the conference call/event over the Internet. Investors can listen to the call by visiting PAR’s website at www.partech.com. In case you are unable to participate in the conference call, an automatic replay will be available on the World Wide Web via www.partech.com until May 8, 2014 or dial 888-286-8010 and use the Pass Code number 27798351 until May 8, 2014 as well.

       

PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

 

 

Assets

March 31,
2014

December 31,
2013

Current assets:
Cash and cash equivalents $ 10,296 $ 10,015
Accounts receivable-net 34,152 30,688
Inventories-net 22,844 24,465
Income tax refund 80 -
Deferred income taxes 4,496 3,747
Other current assets   3,278   3,418
Total current assets 75,146 72,333
Property, plant and equipment - net 5,719 5,494
Deferred income taxes 14,555 15,083
Goodwill 6,852 6,852
Intangible assets - net 15,601 15,071
Other assets   2,832   2,675
Total Assets $ 120,705 $ 117,508
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt $ 153 $ 166
Accounts payable 17,937 17,200
Accrued salaries and benefits 5,344 6,663
Accrued expenses 3,180 2,701
Customer deposits 992 1,071
Deferred service revenue 16,285 12,170
Income taxes payable   -   185
Total current liabilities   43,891   40,156
Long-term debt   876   918
Other long-term liabilities   3,672   3,714
Liabilities of discontinued operations   -   -
Total liabilities   48,439   44,788
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, $.02 par value, 1,000,000 shares authorized - -
Common stock, $.02 par value, 29,000,000 shares authorized;
17,354,673 and 17,301,925 shares issued;
15,646,564 and 15,593,816 outstanding 347 344
Capital in excess of par value 44,157 43,635
Retained earnings 34,127 35,116
Accumulated other comprehensive loss (529) (539)
Treasury stock, at cost, 1,708,109 and 1,708,109 shares   (5,836)   (5,836)
Total shareholders’ equity   72,266   72,720
Total Liabilities and Shareholders’ Equity $ 120,705 $ 117,508
 

   

PAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

 
 

For the three months ended
March 31,

  2014       2013
Net revenues:
Product $ 18,592 $ 23,916
Service 14,250 16,020
Contract   23,699   26,738
  56,541   66,674
Costs of sales:
Product 12,903 16,473
Service 9,553 11,552
Contract   22,072   25,479
  44,528   53,504
Gross margin   12,013   13,170
Operating expenses:
Selling, general and administrative 9,263 10,205
Research and development   3,864   4,140
  13,127   14,345
Operating loss from continuing operations (1,114) (1,175)
Other expense, net (78) (34)
Interest expense   (17)   (13)
Loss from continuing operations before benefit for income taxes (1,209) (1,222)
Benefit for income taxes   220   853
Loss from continuing operations (989) (369)
 
Discontinued operations
Loss on discontinued operations (net of tax)   -   (15)
Net Loss $ (989) $ (384)
 
Basic Earnings per Share:
Loss from continuing operations (0.06) (0.02)
Loss from discontinued operations   -   (0.00)
Net Loss $ (0.06) $ (0.03)
 
Diluted Earnings per Share:
Loss from continuing operations (0.06) (0.02)
Loss from discontinued operations   -   (0.00)
Net Loss $ (0.06) $ (0.03)
Weighted average shares outstanding
Basic   15,499   15,154
Diluted   15,499   15,154
 

 

               

PAR TECHNOLOGY CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share data)

 

For the three months ended March 31, 2014

For the three months ended March 31, 2013

Reported
basis (GAAP)

Adjustments

Comparable
basis (Non-GAAP)

Reported basis
(GAAP)

  Adjustments

Comparable
basis (Non-GAAP)

 
Net revenues $ 56,541 - $ 56,541 $ 66,674 - $ 66,674
Costs of sales   44,528     -     44,528     53,504     -     53,504  
Gross Margin 12,013 - 12,013 13,170 - 13,170
 
Operating Expenses
Selling, general and administrative 9,263 523 8,740 10,205 772 9,433
Research and development   3,864     -     3,864     4,140     106     4,034  
Total operating expenses 13,127 523 12,604 14,345 878 13,467

Operating loss from continuing operations

(1,114 ) 523 (591 ) (1,175 ) 878 (297 )
Other expense, net (78 ) - (78 ) (34 ) - (34 )
Interest expense   (17 )   -     (17 )   (13 )   -     (13 )
 
 
Loss from continuing operations before provision for income taxes (1,209 ) 523 (686 ) (1,222 ) 878 (344 )

(Provision) benefit for income taxes

  220     (178 )   42     853     (331 )   522  
Income (loss) from continuing operations $ (989 ) $ 345   $ (644 ) $ (369 ) $ 547   $ 178  
Loss from discontinued operations, (net of tax) $ -   $ -   $ (15 ) $ (15 )
Net Income (loss) $ (989 ) $ (644 ) $ (384 ) $ 163  
Income (loss) per diluted share from continuing operations $ (0.06 ) $ (0.04 ) $ (0.02 ) $ 0.01  
Loss per diluted share from discontinuing operations   -     -   $ (0.00 ) $ (0.00 )

Income (loss) per diluted share

$ (0.06 ) $ (0.04 ) $ (0.03 ) $ 0.01  
 

The Company reports its financial results in accordance with GAAP, which refers financial information presented in accordance with generally accepted accounting principles in the United States. However, non-GAAP adjusted financial measures, as defined in the reconciliation table above, are provided herein because management uses such measures in evaluating the results of the continuing operations of the Company and believes this information provides investors better insight into underlying business trends and performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

During the first quarter of 2014, the Company recorded a charge of $523,000 for equity based compensation expense. During the first quarter of 2013, the Company recorded total charges of $878,000. The most significant of the charges was $607,000 of separation related and equity based compensation expense. In addition to this charge, the Company incurred legal costs of $271,000 associated with an intellectual property matter that was settled during the quarter. The aforementioned charges, along with an associated adjustment to the Company’s provision for income taxes have been excluded in the Company’s non-GAAP measures because they are considered non-recurring in nature and are quantitatively and qualitatively different from the Company’s core operations during any particular period.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...