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): February 11, 2008
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 February 11, 2008, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
December 31, 2007. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
99.1 Press Release dated February 11, 2008.
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: February 11, 2008
/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 February 11, 2008.
Exhibit 99.1 Press Release dated February 11, 2008.
RELEASE: NEW HARTFORD, NY, February 11, 2008
CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226
cbyrnes@partech.com, www.partech.com
PAR TECHNOLOGY CORPORATION REPORTS FOURTH QUARTER RESULTS
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NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY-- February 11, 2008 -- PAR Technology Corporation (NYSE: PTC),
a leader in providing integrated hardware, software and service solutions to the
hospitality industry, and provider of Government I/T solutions and services,
today reported financial results for the fourth quarter and year ended December
31, 2007.
For the fourth quarter ended December 31, 2007, PAR Technology Corporation
reported revenues of $60.2 million compared to $54.2 million in the fourth
quarter 2006, an increase of 11%. Net income in the period was $483,000 versus
the $820,000 earned in the fourth quarter one year ago, a decline of 41%. The
Company reported diluted net earnings per share of $0.03 for this past quarter,
50% lower than the $0.06 reported for the same period a year earlier.
For the year ended December 31, 2007, PAR Technology Corporation reported
revenues of $209.5 million, basically flat from the $208.7 million reported one
year ago. The Company also reported a net loss of $2.7 million in 2007 versus
net income of $5.7 million earned last year. Diluted net loss per share in 2007
was reported at $0.19 compared to diluted net income per share of $0.39 reported
for the year 2006.
John W. Sammon, PAR Chairman & CEO commented, "We faced a number of challenges
in 2007, many of which had an impact on our operating results. We never-the-less
are pleased with our revenue growth in the fourth quarter and our return to
profitability.
"Sammon went on to say, "Despite difficult economic trends in the U.S., our
outlook for 2008 anticipates improved operating results in each of our business
segments. The Company, along with our management team, is committed to managing
our business toward improved operating results during the coming year. From a
long-term perspective, we believe PAR is well positioned to benefit from
multiple growth opportunities, as the trend towards integrated services and
solutions in the hospitality marketplace continues to accelerate. We are
optimistic about our ability to take advantage of these opportunities based on
our product and service offerings, relationships with industry leaders in each
segment of hospitality, and our demonstrated ability to deliver business value
at high levels of scalability for our customers."
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.
PAR Technology Corporation creates and markets products that help hospitality
operators around the world to better manage money, materials, people and the
guest experience. PAR has provided hardware, software and services to the
world's largest restaurant chains and their franchisees for almost 30 years.
Today the Company's extensive offering includes technology solutions for the
full spectrum of hospitality operations, from boutique hotels and independent
table service restaurants to international QSR chains, all backed by PAR's
global service network. The Company has over 45,000 installations in 105
countries worldwide. PAR is also 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 more information visit the
Company's website at www.partech.com.
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)
December 31,
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2007 2006
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Assets
Current assets:
Cash and cash equivalents ................... $ 4,431 $ 4,273
Accounts receivable-net ..................... 43,608 46,791
Inventories-net ............................. 40,319 35,948
Income tax refunds .......................... 521 1,103
Deferred income taxes ....................... 5,630 4,601
Other current assets ........................ 3,370 2,737
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Total current assets .................... 97,879 95,453
Property, plant and equipment - net .............. 7,669 7,535
Deferred income taxes ............................ 503 --
Goodwill ......................................... 26,998 25,734
Intangible assets - net .......................... 9,899 10,695
Other assets ..................................... 3,570 2,841
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$ 146,518 $ 142,258
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ........... $ 772 $ 240
Borrowings under lines of credit ............ 2,500 7,713
Accounts payable ............................ 16,978 12,470
Accrued salaries and benefits ............... 9,919 8,279
Accrued expenses ............................ 3,860 1,861
Customer deposits ........................... 3,898 3,656
Deferred service revenue .................... 14,357 12,254
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Total current liabilities ............... 52,284 46,473
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Long-term debt ................................... 6,932 7,708
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Deferred income taxes ............................ -- 115
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Other long-term liabilities ...................... 2,315 1,879
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Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ............... -- --
Common stock, $.02 par value,
29,000,000 shares authorized;
16,047,818 and 15,980,486 shares issued;
14,395,063 and 14,327,731 outstanding .... 321 320
Capital in excess of par value .............. 39,252 38,602
Retained earnings ........................... 50,451 53,159
Accumulated other comprehensive income (loss) 472 (489)
Treasury stock, at cost, 1,652,755 shares ... (5,509) (5,509)
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Total shareholders' equity .............. 84,987 86,083
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$ 146,518 $ 142,258
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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
For the three months For the year ended
ended December 31, December 31,
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2007 2006 2007 2006
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Net revenues:
Product ...................................... $ 24,024 $ 19,532 $ 77,116 $ 83,237
Service ...................................... 18,735 18,256 67,370 61,979
Contract ..................................... 17,440 16,405 64,998 63,451
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60,199 54,193 209,484 208,667
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Costs of sales:
Product ...................................... 13,947 11,683 45,635 47,925
Service ...................................... 13,788 13,402 51,078 46,338
Contract ..................................... 16,401 15,051 60,863 58,895
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44,136 40,136 157,576 153,158
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Gross margin ................................. 16,063 14,057 51,908 55,509
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Operating expenses:
Selling, general and administrative .......... 11,041 8,930 37,517 33,440
Research and development ..................... 4,392 3,454 17,155 11,802
Amortization of identifiable intangible assets 391 361 1,572 1,283
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15,824 12,745 56,244 46,525
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Operating income (loss) ........................... 239 1,312 (4,336) 8,984
Other income, net ................................. 483 180 1,227 617
Interest expense .................................. (327) (276) (1,096) (734)
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Income (loss) before provision for income taxes ... 395 1,216 (4,205) 8,867
(Provision) benefit for income taxes .............. 88 (396) 1,497 (3,146)
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Net income (loss) ................................ $ 483 $ 820 $ (2,708) $ 5,721
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Earnings (loss) per share
Basic ........................................ $ .03 $ .06 $ (.19) $ .40
Diluted ...................................... $ .03 $ .06 $ (.19) $ .39
Weighted average shares outstanding
Basic ........................................ 14,361 14,264 14,345 14,193
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Diluted ...................................... 14,772 14,700 14,345 14,752
========= ========= ========= =========