8-K 1 form8k102307.txt THIRD QUARTER 2007 RESULTS 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 23, 2007 PAR TECHNOLOGY CORPORATION -------------------------- (Exact name of registrant as specified in its charter) Delaware 1-09720 16-1434688 -------- ------- ---------- (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 ------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (315) 738-0600 Not Applicable -------------- (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 23, 2007, PAR Technology Corporation issued a press release announcing its results of operation for the quarterly period ending September 30, 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 October 23, 2007. 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 -------------------------- (Registrant) Date: October 23, 2007 /s/Ronald J. Casciano --------------------------------------- Ronald J. Casciano Vice President, Chief Financial Officer and Treasurer EXHIBIT INDEX Exhibit Number Description -------------- ----------- 99.1 Press Release dated October 23, 2007. Exhibit 99.1 Press Release dated October 23, 2007. RELEASE: NEW HARTFORD, NY, October 23, 2007 CONTACT: Christopher R. Byrnes (315) 738-0600 ext. 226 cbyrnes@partech.com, www.partech.com PAR TECHNOLOGY CORPORATION REPORTS THIRD QUARTER RESULTS ----------------------------------------------------------------- NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC) New Hartford, NY- October 23, 2007 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, 2007, PAR Technology Corporation reported revenues of $51.6 million compared to $48.5 million in the third quarter 2006, an increase of 6.3%. A net loss was reported of $862,000, down from the $550,000 earned in the third quarter one year ago. The Company reported diluted loss per share of $0.06 for this past quarter, compared to the diluted earnings per share of $0.04 reported for the same period a year earlier. For the nine months ended September 30, 2007, PAR Technology Corporation reported revenues of $149.3 million, a 3.4% decrease when compared to the $154.5 million reported one year ago. The Company also reported a net loss of $3.2 million in the first nine months of 2007 versus net income of $4.9 million for the first nine months of 2006. Diluted loss per share for the first nine months of 2007 was reported at $0.22, compared to diluted net income per share of $0.33 reported for the same period in 2006. John W. Sammon, Chairman and CEO of PAR Technology commented, "Generally speaking, the Q3 numbers were within expectations. We continued to make solid strategic progress this quarter in our ongoing internal investment strategy. This strategy requires effort and resources but when completed will result in a stronger company that is more prepared to compete on a global basis in our industry." Sammon went on to say, "While not satisfied with our third quarter results we have returned to growing revenues which highlights the resilience of our franchise in hospitality technology. With a broad array of technology products designed for the hospitality industry, we believe PAR is positioned to capitalize on evolving market demand. Our focus remains on the design and delivery of innovative products, the addition of channel partners, and producing global operational excellence." 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, hotel/resort 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 45,000 systems installed in over 105 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. ### PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) September 30, December 31, 2007 2006 ------------ ------------ Assets Current assets: Cash and cash equivalents ....................... $ 4,506 $ 4,273 Accounts receivable-net ......................... 39,398 46,791 Inventories-net ................................. 38,282 35,948 Income tax refunds .............................. 983 1,103 Deferred income taxes ........................... 6,355 5,139 Other current assets ............................ 3,328 2,737 --------- --------- Total current assets ........................ 92,852 95,991 Property, plant and equipment - net .................. 7,215 7,535 Goodwill ............................................. 26,767 25,734 Intangible assets - net .............................. 10,163 10,695 Other assets ......................................... 3,526 2,841 --------- --------- $ 140,523 $ 142,796 ========= ========= Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt ............... $ 694 $ 240 Borrowings under lines of credit ................ 5,421 7,713 Accounts payable ................................ 11,463 12,470 Accrued salaries and benefits ................... 7,820 8,279 Accrued expenses ................................ 2,791 1,861 Customer deposits ............................... 4,589 3,656 Deferred service revenue ........................ 12,413 12,254 --------- --------- Total current liabilities ................... 45,191 46,473 --------- --------- Long-term debt ....................................... 7,182 7,708 --------- --------- Deferred income taxes ................................ 1,080 653 --------- --------- Other long-term liabilities .......................... 2,878 1,879 --------- --------- Shareholders' Equity: Preferred stock, $.02 par value, 1,000,000 shares authorized ................... -- -- Common stock, $.02 par value, 29,000,000 shares authorized; 16,031,035 and 15,980,486 shares issued; 14,378,280 and 14,327,731outstanding ......... 321 320 Capital in excess of par value .................. 39,048 38,602 Retained earnings ............................... 49,968 53,159 Accumulated other comprehensive income (loss) ... 364 (489) Treasury stock, at cost, 1,652,755 shares ....... (5,509) (5,509) --------- --------- Total shareholders' equity ................... 84,192 86,083 --------- --------- $ 140,523 $ 142,796 ========= =========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) For the three months For the nine months ended September 30, ended September 30, ---------------------- ---------------------- 2007 2006 2007 2006 --------- --------- --------- --------- Net revenues: Product ...................................... $ 18,066 $ 17,975 $ 53,092 $ 63,705 Service ...................................... 17,006 15,092 48,635 43,723 Contract ..................................... 16,505 15,467 47,558 47,046 --------- --------- --------- --------- 51,577 48,534 149,285 154,474 --------- --------- --------- --------- Costs of sales: Product ...................................... 10,681 10,370 31,688 36,242 Service ...................................... 13,238 11,387 37,290 32,937 Contract ..................................... 15,256 14,600 44,462 43,844 --------- --------- --------- --------- 39,175 36,357 113,440 113,023 --------- --------- --------- --------- Gross margin ................................. 12,402 12,177 35,845 41,451 --------- --------- --------- --------- Operating expenses: Selling, general and administrative .......... 8,581 8,241 26,476 24,510 Research and development ..................... 4,562 2,613 12,763 8,348 Amortization of identifiable intangible assets 397 307 1,181 922 --------- --------- --------- --------- 13,540 11,161 40,420 33,780 --------- --------- --------- --------- Operating income (loss) ........................... (1,138) 1,016 (4,575) 7,671 Other income, net ................................. 350 62 744 437 Interest expense .................................. (310) (206) (769) (458) --------- --------- --------- --------- Income (loss) before provision for income taxes ... (1,098) 872 (4,600) 7,650 Benefit (provision) for income taxes .............. 236 (322) 1,409 (2,750) --------- --------- --------- --------- Net income (loss) $ (862) $ 550 $ (3,191) $ 4,900 ========= ========= ========= ========= Earnings (loss) per share Basic ........................................ $ (.06) $ .04 $ (.22) $ .35 Diluted ...................................... $ (.06) $ .04 $ (.22) $ .33 Weighted average shares outstanding Basic ........................................ 14,351 14,181 14,340 14,168 ========= ========= ========= ========= Diluted ...................................... 14,351 14,646 14,340 14,751 ========= ========= ========= =========