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
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
The last two years has seen discussions about cloud computing evolve from the public / private / hybrid split to the reality that most enterprises will be creating a complex, multi-cloud strategy. Companies are wary of committing all of their resources to a single cloud, and instead are choosing to spread the risk – and the benefits – of cloud computing across multiple providers and internal infrastructures, as they follow their business needs. Will this approach be successful? How large is the ...
Your clients expect transactions to never fail, cloud access to be fast and always on, and their data to be protected - no exceptions. Hear about how Secure Service Container (SSC), an IBM-exclusive open technology, enables secure building and hosting of next-generation applications, both cloud and on-premises. SSC protects the full stack from external and insider threats, allows automatic encryption of data in-flight and at-rest, and is tamper-resistant during installation and runtime – with no...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...