Welcome!

Cloud Expo Authors: Denise Dubie, PR.com Newswire, Roger Strukhoff, Elizabeth White, Liz McMillan

News Feed Item

PAR Technology Corporation Announces 2012 Third Quarter Results

PAR Technology Corporation (NYSE: PAR) today announced results for the third quarter ended September 30, 2012. PAR reported third quarter revenues of $61.1 million, a 4% increase from the $58.7 million reported for the third quarter of 2011. Net income from continuing operations for the third quarter of 2012 was $1.3 million, representing diluted earnings per share of $0.09, compared to the third quarter of 2011 figure of $1.6 million, representing diluted earnings per share of $0.11.

Paul B. Domorski, Chairman and Chief Executive Officer, stated, “Current market conditions, in the hospitality segments we serve, are making organic growth challenging in the near-term. Despite this uncertainty, PAR has been able to maintain profitability, while continuing our investment in expanding our market reach through new products and services.”

Mr. Domorski continued, “During the third quarter, PAR made several important announcements. In the hospitality segment, we introduced our all new PAR EverServ® 7000 Point of Sale terminal. This is a terrific new product, which delivers demonstrable value to our customers at an attractive price point. Also in the quarter, PAR Springer-Miller formally announced the transition of its ATRIO® Guest Experience Management software with Microsoft Corporation’s Windows Azure™ cloud platform. With Windows Azure, a global network of Microsoft-managed datacenters, PAR is now able to provide computing and storage resources in support of ATRIO, assuring our customers of 99.95% uptime. During the quarter, we also announced new distribution partners, as we prepare for the aggressive roll-out of ATRIO worldwide.”

“Finally, our Government contracting segment announced several new contracts, most notably the award by the U.S. Army of an additional contract with a ceiling value of $48 million and a five year term. This is the most recent contract we have received based on our expertise in advanced Full Motion Video (FMV), Geospatial Information Systems (GIS) and Intelligence Surveillance and Reconnaissance (ISR) software and hardware technologies. PAR is providing research, development, deployment and operational support, and user training necessary to transition these innovative and important capabilities to the field.”

Mr. Domorski concluded, “The continued slowdown in business with our largest restaurant technology customer in the quarter has resulted in lower year-over-year revenue in our hospitality technology segment. Our other hospitality markets have also shown weakness in the quarter. However, given our conservative approach to uncertainty, we braced PAR for such conditions, refrained from any non-essential expenditures and concentrated on profitability while continuing our focus on innovation and new product introductions. It is important to note that we continue to benefit from our strong and growing Government contracting business through a pipeline of new contract wins. As our hospitality technology markets rebound from the current market slowdown, we are poised to return to improved growth patterns with higher profitability.”

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 has two operating segments:

  • PAR’s Hospitality segment has been a leading provider of restaurant and retail technology for more than 30 years. ParTech, Inc. offers technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. PAR Springer-Miller Systems, Inc. offers hotel management systems that provide a complete suite of powerful tools for guest management, recreation management, and timeshare/condo management. PAR Springer-Miller Systems also provides the spa industry a leading management application that was 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 comprised of PAR Government Systems Corporation, which provides system solutions to Federal/State Government agencies, and Rome Research Corporation, which is a leading provider of communications and information technology support services to the United States Department of Defense.

Visit www.partech.com for more information.

There will be a conference call at 10:00 a.m. eastern time on November 5, 2012, during which the Company’s management will discuss the financial results for the third quarter of 2012. If you would like to participate in this conference please call 800-561-2731 approximately 10 minutes before the call is scheduled to begin and use the PAR pass code 23958721. Individual & Institutional Investors will have the opportunity to listen to the conference call/event over the Internet. Individual Investors can listen to the call by visiting PAR’s website at www.partech.com, and through CCBN’s individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected site, StreetEvents (www.streetevents.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.companyboardroom.com until November 12, 2012 or dial 888-286-8010 and use the Pass Code number 39590683 until November 12, 2012 as well.

PAR TECHNOLOGY CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

    September 30,   December 31,
2012 2011
Assets
Current assets:
Cash and cash equivalents $ 18,206 $ 7,742
Accounts receivable-net 26,323 30,680
Inventories-net 25,469 25,260
Income tax refund 37 -
Deferred income taxes 9,503 10,240
Other current assets 3,958 3,088
Escrow receivable   956     -  
Total current assets 84,452 77,010
Property, plant and equipment - net 6,099 5,259
Deferred income taxes 5,402 5,605
Goodwill 6,852 6,852
Intangible assets - net 16,779 15,888
Other assets 2,392 2,147
Assets of discontinued operations   -     3,182  
Total Assets $ 121,976   $ 115,943  
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt $ 157 $ 1,494
Accounts payable 17,164 15,773
Accrued salaries and benefits 6,628 7,002
Accrued expenses 3,792 2,609
Customer deposits 763 1,137
Deferred service revenue 12,880 10,412
Income taxes payable   -     138  
Total current liabilities 41,384 38,565
Long-term debt 1,114 1,249
Other long-term liabilities 3,184 2,837
Liabilities of discontinued operations 104   925  
Total liabilities 45,786 43,576
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;
17,061,171 and 16,863,868 shares issued;
15,353,484 and 15,156,584 outstanding 341 337
Capital in excess of par value 43,547 42,990
Retained earnings 38,371 35,073
Accumulated other comprehensive loss (235 ) (201 )
Treasury stock, at cost, 1,707,687 and 1,707,284 shares   (5,834 )   (5,832 )
Total shareholders’ equity   76,190     72,367  
Total Liabilities and Shareholders’ Equity $ 121,976   $ 115,943  

See accompanying notes to consolidated financial statements

PAR TECHNOLOGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

    For the three months   For the nine months
Ended September 30, Ended September 30,
2012   2011 2012   2011
Net revenues:
Product $ 22,340 $ 24,424 $ 62,652 $ 68,877
Service 16,720 18,510 48,113 51,594
Contract   21,992     15,756     67,965     48,836  
  61,052     58,690     178,730     169,307  
Costs of sales:
Product 14,681 15,754 39,699 42,888
Service 11,775 13,184 33,813 44,176
Contract   20,584     14,667     64,151     45,812  
  47,040     43,605     137,663     132,876  
Gross margin   14,012     15,085     41,067     36,431  
Operating expenses:
Selling, general and administrative 9,410 8,745 28,844 27,730
Research and development 3,309 3,363 9,947 10,428
Impairment of goodwill and intangible assets - - - 20,843
Amortization of identifiable intangible assets   138     257     441     667  
  12,857     12,365     39,232     59,668  
Operating income (loss) from continuing operations 1,155 2,720 1,835 (23,237 )
Other income (expense), net 233 23 440 (106 )
Interest expense   (22 )   (48 )   (64 )   (163 )
Income (loss) from continuing operations before provision for income taxes 1,366 2,695 2,211 (23,506 )
(Provision) benefit for income taxes   (62 )   (1,099 )   (383 )   8,317  
Income (loss) from continuing operations 1,304 1,596 1,828 (15,189 )
Discontinued operations
Income (loss) on discontinued operations (net of tax)   50     (394 )   1,470     (1,053 )
Net income (loss) $ 1,354   $ 1,202   $ 3,298   $ (16,242 )
Basic Earnings per Share:
Income (loss) from continuing operations .09 .11 .12 (1.01 )
Income (loss) from discontinued operations   .00     (.03 )   .10     (.07 )
Net income (loss) $ .09   $ .08   $ .22   $ (1.08 )
Diluted Earnings per Share:
Income (loss) from continuing operations .09 .11 .12 (1.01 )
Income (loss) from discontinued operations   .00     (.03 )   .10     (.07 )
Net income (loss) $ .09   $ .08   $ .22   $ (1.08 )
Weighted average shares outstanding
Basic   15,131     15,031     15,105     14,984  
Diluted   15,207     15,118     15,179     14,984  

See accompanying notes to consolidated financial statements

PAR TECHNOLOGY CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

      For the nine months ended September 30, 2011

For the nine

months ended

September 30,

2012

Reported

basis

(GAAP)

 

Adjustments

 

Comparable

basis

(Non-GAAP)

 
Net revenues $ 178,730 $ 169,307 - $ 169,307
Costs of sales   137,663     132,876     7,732     125,144  
Gross Margin 41,067 36,431 7,732 44,163
 
Operating Expenses
Selling, general and administrative 28,844 27,730 595 27,135
Research and development 9,947 10,428 - 10,428
Impairment of goodwill and intangible assets - 20,843 20,843 -
Amortization of identifiable intangible assets   441     667     -     667  
Total operating expenses 39,232 59,668 21,438 38,230
 
Operating income (loss) from continuing operations 1,835 (23,237 ) 29,170 5,933
Other income (expense), net 440 (106 ) 253 147
Interest expense   (64 )   (163 )   -     (163 )
Income (loss) from continuing operations before provision for income taxes 2,211 (23,506 ) 29,423 5,917
(Provision)benefit for income taxes   (383 )   8,317     (10,568 )   (2,251 )
Income (loss) from continuing operations $ 1,828   $ (15,189 ) $ 18,855   $ 3,666  
Income (loss) per diluted share from continuing operations $ 0.22   $ (1.01 ) $ 0.24  
 

The Company reports its financial results in accordance with GAAP. 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.

For the nine months ended September 30, 2011, the Company recorded total charges of $29.4 million primarily related to an impairment of goodwill and intangible assets of $20.8 million. Additionally, the Company recorded a charge of $7.7 million related to a non-recurring write-down of certain inventory associated with discontinued products, and charges of $0.9 million related to the consolidation of some of its facilities. The aforementioned charges have been recorded net of tax benefit of $10.6 million and 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.

These charges did not have any impact on the Company’s financial results for the three months ended September 30, 2011.

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.

Cloud Expo Breaking News
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Cloud Computing is evolving into a Big Three of Amazon Web Services, Google Cloud, and Microsoft Azure. Cloud 360: Multi-Cloud Bootcamp, being held Nov 4–5, 2014, in conjunction with 15th Cloud Expo in Santa Clara, CA, delivers a real-world demonstration of how to deploy and configure a scalable and available web application on all three platforms. The Cloud 360 Bootcamp, led by Janakiram MSV, an analyst with Gigaom Research, is the first bootcamp that introduces the core concepts of Infrastructure as a Service (IaaS) based on the workings of the Big Three platforms – Amazon EC2, Google Compute Engine, and Azure VMs. Bootcamp attendees will get to see the big picture and also receive the knowledge needed to make the best cloud decisions for their business applications and entire enterprise IT organization.
The Internet of Things is a natural complement to the cloud and related technologies such as Big Data, analytics, and mobility. In his session at Internet of @ThingsExpo, Joe Weinman will lay out four generic strategies – digital disciplines – to exploit emerging digital technologies for strategic advantage. Joe Weinman has held executive leadership positions at Bell Labs, AT&T, Hewlett-Packard, and Telx, in areas such as corporate strategy, business development, product management, operations, and R&D.
SYS-CON Events announced today that DevOps.com has been named “Media Sponsor” of SYS-CON's “DevOps Summit at Cloud Expo,” which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. DevOps.com is where the world meets DevOps. It is the largest collection of original content relating to DevOps on the web today Featuring up-to-the-minute news, feature stories, blogs, bylined articles and more, DevOps.com is where the thought leaders of the DevOps movement make their ideas known.
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that allow marketers to cut through the noise and design their campaigns around strong, predictive signals, rather than arbitrary statistics. SendGrid sends up to half a billion emails a day for customers such as Pinterest and GitHub. All this email adds up to more text than produced in the entire twitterverse. We track events like clicks, opens and deliveries to help improve deliverability for our customers – adding up to over 50 billion useful events every month. While SendGrid data covers only abo...
SYS-CON Events announced today that the Web Host Industry Review has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, reviews and resources to the hosting community. TheWHIR Blogs provides a community of expert industry perspectives. The Web Host Industry Review Magazine also offers a business-minded, issue-driven perspective of interest to executives and decision-makers. WHIR TV offers on demand web hosting video interviews and web hosting video features of the key persons and events of the web hosting industry. WHIR Events brings together like-minded hosting industry professionals and decision-makers in local communities. TheWHIR is an iNET Interactive property.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participant in the technology community, the company has a long history of advocacy, meme-making, and evangelism.
SYS-CON Events announced today that Verizon has been named “Gold Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic networking and advanced communications platforms, Verizon Enterprise Solutions helps open new opportunities around the world for innovation, investment and business transformation. Visit verizonenterprise.com to learn more.
SYS-CON Events announced today that TMCnet has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Technology Marketing Corporation (TMC) is the world's leading business to business and integrated marketing media company, servicing niche markets within the communications and technology industries.
"In my session I spoke about enterprise cloud analytics and how we can leverage analytics as a service," explained Ajay Budhraja, CTO at the Department of Justice, in this SYS-CON.tv interview at the 14th International Cloud Expo®, held June 10-12, 2014, at the Javits Center in New York City. Cloud Expo® 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading Cloud industry players in the world.
“We are starting to see people move beyond the commodity cloud and enterprises need to start focusing on additional value added services in order to really drive their adoption," explained Jason Mondanaro, Director of Product Management at MetraTech, in this SYS-CON.tv interview at the 14th International Cloud Expo®, held June 10-12, 2014, at the Javits Center in New York City. Cloud Expo® 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading Cloud industry players in the world.
"We are automated capacity control software, which basically looks at all the supply and demand and running a virtual cloud environment and does a deep analysis of that and says where should things go," explained Andrew Hillier, Co-founder & CTO of CiRBA, in this SYS-CON.tv interview at the 14th International Cloud Expo®, held June 10-12, 2014, at the Javits Center in New York City. Cloud Expo® 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading Cloud industry players in the world.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity. In his session at Internet of @ThingsExpo, Mac Devine, Distinguished Engineer at IBM, will discuss bringing these three elements together via Systems of Discover.
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at 15th Internet of @ThingsExpo, Chad Jones, Vice President, Product Strategy of LogMeIn's Xively IoT Platform, will show you how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
All too many discussions about DevOps conclude that the solution is an all-purpose player: developer and operations guru, complete with pager for round-the-clock duty. For most organizations that is not the way forward. In his session at DevOps Summit, Bernard Golden, Vice President of Strategy at ActiveState, will discuss how to achieve the agility and speed of end-to-end automation without requiring an organization stocked with Supermen and Superwomen.