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): October 26, 2006
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 October 26, 2006, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
September 30, 2006. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
99.1 Press Release dated October 26, 2006.
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: October 26, 2006
/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 October 26, 2006.
Exhibit 99.1 Press Release dated October 26, 2006.
RELEASE: NEW HARTFORD, NY, October 26, 2006
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS THIRD QUARTER RESULTS
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
(New Hartford, NY- October 26, 2006) PAR Technology Corporation (NYSE: PTC), a
provider of integrated hardware, software and service solutions to the
restaurant, hotel/resort, hospitality industries and information-technology
services to the United States Government, today reported third quarter financial
results.
For the third quarter ended September 30, 2006, PAR Technology Corporation
reported revenues of $48.5 million compared to $52.2 million in the third
quarter 2005, a decrease of 7%. Net income was reported at $550,000, down from
the $2.5 million earned in the third quarter one year ago. The Company reported
diluted earnings per share of $0.04 for this past quarter, compared to the $0.17
reported for the same period a year earlier. The 2006 third quarter results
include non-cash stock-based compensation expense of $62,000 due to the
expensing of stock options and other share-based compensation in accordance with
Statement of Financial Accounting Standards No. 123R. Such treatment was not
required in the third quarter 2005.
For the nine months ended September 30, 2006, PAR Technology Corporation
reported revenues of $154.5 million, a 2% increase when compared to the $152.2
million reported one year ago. The Company also reported net income of $4.9
million in the first nine months of 2006 versus $6.2 million for the first nine
months of 2005, a decrease of 21%. Diluted earnings per share for the first nine
months of 2006 was reported at $0.33, a decrease of 21% when compared to diluted
net income per share of $0.42 reported for the same period in 2005. In
accordance with Statement of Financial Accounting Standards No. 123R the first
nine months 2006 results include non-cash stock-based compensation expense of
$200,000 compared to no such expense for the first nine months of 2005.
John W. Sammon, Chairman and CEO of PAR Technology commented, "While we were
disappointed by lower than previously anticipated third quarter revenue and
earnings, we are still encouraged by the strength of the markets we participate
in, our strong list of Tier 1 customers and the dedication and hard work of our
employees. We believe that our balance sheet, product diversity and
growth-oriented culture will enable us to return PAR to a more reliable growth
pattern which will allow us to focus on expanding and developing our business."
Certain Company information in this release or 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
PAR Technology Corporation develops, markets and supports hardware and software
products that improve the ability of restaurant, hotels/resorts and retail
business professionals to make timely, fact-based business decisions. The
Company is the world's largest supplier of Point-of-Sale systems to the quick
service restaurant market with over 40,000 systems installed in over 100
countries. In addition 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 additional information visit PAR's website at
www.partech.com.
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)
September 30, December 31,
Assets 2006 2005
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Current assets:
Cash and cash equivalents ........................... $ 2,098 $ 4,982
Accounts receivable-net ............................. 47,900 40,781
Inventories-net ..................................... 34,839 29,562
Income tax refunds .................................. 2,353 879
Deferred income taxes ............................... 4,442 5,690
Other current assets ................................ 3,192 2,598
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Total current assets ......................... 94,824 84,492
Property, plant and equipment - net ........................ 7,550 8,044
Goodwill ................................................... 20,885 20,622
Intangible assets - net .................................... 8,902 9,904
Other assets ............................................... 2,695 2,087
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$134,856 $125,149
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ................... $ 129 $ 76
Borrowings under lines of credit .................... 9,899 3,500
Accounts payable .................................... 12,913 12,703
Accrued salaries and benefits ....................... 7,362 9,725
Accrued expenses .................................... 2,003 2,352
Customer deposits ................................... 3,545 3,973
Deferred service revenue ............................ 10,616 11,332
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Total current liabilities .................... 46,467 43,661
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Long-term debt ............................................. 1,889 1,948
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Deferred income taxes ...................................... 751 201
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Other long-term liabilities ................................ 1,649 847
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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;
15,959,536 and 15,914,958 shares issued;
14,181,232 and 14,136,654 outstanding ........... 319 318
Capital in excess of par value ...................... 37,799 37,271
Retained earnings ................................... 52,338 47,442
Accumulated other comprehensive loss ................ (428) (611)
Treasury stock, at cost, 1,778,304 shares ........... (5,928) (5,928)
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Total shareholders' equity ................... 84,100 78,492
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$134,856 $125,149
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
For the three months For the nine months
ended September 30, ended September 30,
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2006 2005 2006 2005
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Net revenues:
Product ...................................... $ 17,975 $ 22,855 $ 63,705 $ 66,786
Service ...................................... 15,092 15,065 43,723 42,883
Contract ..................................... 15,467 14,277 47,046 42,505
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48,534 52,197 154,474 152,174
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Costs of sales:
Product ...................................... 10,370 13,239 36,242 40,008
Service ...................................... 11,387 11,517 32,937 32,887
Contract ..................................... 14,600 13,284 43,844 39,793
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36,357 38,040 113,023 112,688
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Gross margin ........................... 12,177 14,157 41,451 39,486
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Operating expenses:
Selling, general and administrative .......... 8,241 7,457 24,510 22,173
Research and development ..................... 2,613 2,483 8,348 6,868
Amortization of identifiable intangible assets 307 246 922 736
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11,161 10,186 33,780 29,777
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Operating income .................................. 1,016 3,971 7,671 9,709
Other income, net ................................. 62 191 437 495
Interest expense .................................. (206) (41) (458) (184)
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Income before provision for income taxes .......... 872 4,121 7,650 10,020
Provision for income taxes ........................ (322) (1,578) (2,750) (3,820)
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Net income ........................................ $ 550 $ 2,543 $ 4,900 $ 6,200
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Earnings per share
Basic ........................................ $ .04 $ .18 $ .35 $ .45
Diluted ...................................... $ .04 $ .17 $ .33 $ .42
Weighted average shares outstanding
Basic ........................................ 14,181 13,978 14,168 13,696
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Diluted ...................................... 14,646 14,751 14,751 14,604
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