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 Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...