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 13, 2007
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 13, 2007, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending
December 31, 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 February 13, 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
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(Registrant)
Date: February 13, 2007
/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 13, 2007.
Exhibit 99.1 Press Release dated February 13, 2007.
RELEASE: NEW HARTFORD, NY, February 13, 2007
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 13, 2007) 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, 2006.
For the fourth quarter ended December 31, 2006, PAR Technology Corporation
reported revenues of $54.2 million compared to $53.5 million in the fourth
quarter 2005, an increase of 1.4%. Net income fell to $820,000 versus the $3.2
million earned in the fourth quarter one year ago. The Company reported diluted
net earnings per share of $0.06 for this past quarter, compared to the $0.22
reported for the same period a year earlier. The 2006 fourth quarter results
include non-cash stock-based compensation expense of $110,000 or $0.01 per share
due to the expensing of stock options and other share-based compensation in
accordance with Statement of Financial Accounting Standards No. 123R,
"Share-Based Payment". Such treatment was not required in the fourth quarter
2005.
For the year ended December 31, 2006, PAR Technology Corporation reported
revenues of $208.7 million, a 1.5% increase from the $205.6 million reported one
year ago. The Company also reported net income of $5.7 million in 2006 versus
the $9.4 million earned last year. Diluted net earnings per share in 2006 were
reported at $0.39 compared to diluted net income per share of $0.64 reported for
the year 2005. In accordance with Statement of Financial Accounting Standards
No. 123R, 2006 results include non-cash stock-based compensation expense of
$310,000 or $0.02 per share compared to no such expense for 2005.
John W. Sammon, PAR Chairman & CEO commented, "In 2006 we experienced some
weakness relative to our expectations in our hospitality business while our
government business performed as planned. As our hospitality business fell short
of plan; we never-the-less expanded our investments in support of our
hospitality growth strategy. Specifically we took steps to expand our
infrastructure to grow channels of distribution and to strengthen our
international support organization especially in the Asia Pacific area.
Additionally; in November we announced the acquisition of the assets of Siva
Corporation, a software technology leader in the hospitality industry. This
acquisition, while reducing earnings, has provided the next generation software
platform for the hospitality market. We believe that by acquiring the Siva
assets and retaining its engineering talent, we will accelerate our time to
market by meeting future requirements of hospitality chains, which are being
driven by advances in web based technology, thus providing a significant
platform for long-term growth."
Sammon concluded, "In summary, while I would like to be able to report improved
operating results for every quarter, I feel it is far more important to follow
our strategy and to continue to make strategic investments in our businesses. We
feel that these investment initiatives will over the long term, produce a
growing, more predictable and increasingly profitable revenue stream which will
significantly increase shareholder value. As we pursue this strategy - in 2007,
we expect to see single digit revenue growth, with earnings per share possibly
flat when compared to 2006."
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 is a leading provider of professional services and
enterprise business intelligence software and hardware to the hospitality
industry. PAR develops, markets and supports hardware and software products that
improve the ability of hospitality business professionals to make timely,
fact-based business decisions. The Company is a premier provider of I/T
management solutions to hotel and restaurant companies, with over 40,000
installations worldwide in 100 countries. PAR has also been 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 please 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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2006 2005
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Assets
Current assets:
Cash and cash equivalents ............................. $ 4,273 $ 4,982
Accounts receivable-net ............................... 46,791 40,781
Inventories-net ....................................... 35,948 29,562
Income tax refunds .................................... 1,103 879
Deferred income taxes ................................. 5,139 5,690
Other current assets .................................. 2,737 2,598
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Total current assets .............................. 95,991 84,492
Property, plant and equipment - net ........................ 7,535 8,044
Goodwill ................................................... 25,734 20,622
Intangible assets - net .................................... 10,695 9,904
Other assets ............................................... 2,841 2,087
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$ 142,796 $ 125,149
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Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt ..................... $ 90 $ 76
Borrowings under lines of credit ...................... 7,713 3,500
Accounts payable ...................................... 12,470 12,703
Accrued salaries and benefits ......................... 8,279 9,725
Accrued expenses ...................................... 1,861 2,352
Customer deposits ..................................... 3,656 3,973
Deferred service revenue .............................. 12,254 11,332
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Total current liabilities ......................... 46,323 43,661
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Long-term debt ............................................. 7,858 1,948
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Deferred income taxes ...................................... 653 201
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Other long-term liabilities ................................ 1,879 847
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Commitments and contingent liabilities
Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ......................... -- --
Common stock, $.02 par value,
29,000,000 shares authorized;
15,980,486 and 15,914,958 shares issued;
14,327,731 and 14,136,654 outstanding ............... 320 318
Capital in excess of par value ........................ 38,602 37,271
Retained earnings ..................................... 53,159 47,442
Accumulated other comprehensive loss .................. (489) (611)
Treasury stock, at cost, 1,652,755 and 1,778,304 shares (5,509) (5,928)
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Total shareholders' equity ........................ 86,083 78,492
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$ 142,796 $ 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 ended For the year ended
December 31, December 31,
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2006 2005 2006 2005
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Net revenues:
Product ...................................... $ 19,532 $ 24,344 $ 83,237 $ 91,130
Service ...................................... 18,256 15,444 61,979 58,327
Contract ..................................... 16,405 13,677 63,451 56,182
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54,193 53,465 208,667 205,639
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osts of sales:
Product ...................................... 11,683 13,435 47,925 53,443
Service ...................................... 13,402 11,318 46,338 44,205
Contract ..................................... 15,051 12,612 58,895 52,405
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40,136 37,365 153,158 150,053
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Gross margin ........................... 14,057 16,100 55,509 55,586
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Operating expenses:
Selling, general and administrative .......... 8,930 8,694 33,440 30,867
Research and development ..................... 3,454 2,487 11,802 9,355
Amortization of identifiable intangible assets 361 294 1,283 1,030
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12,745 11,475 46,525 41,252
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Operating income .................................. 1,312 4,625 8,984 14,334
Other income, net ................................. 180 248 617 743
Interest expense .................................. (276) (103) (734) (287)
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Income before provision for income taxes .......... 1,216 4,770 8,867 14,790
Provision for income taxes ........................ (396) (1,538) (3,146) (5,358)
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Net income ........................................ $ 820 $ 3,232 $ 5,721 $ 9,432
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Earnings per share
Basic ........................................ $ .06 $ .23 $ .40 $ .68
Diluted ...................................... $ .06 $ .22 $ .39 $ .64
Weighted average shares outstanding
Basic ........................................ 14,264 14,075 14,193 13,792
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Diluted ...................................... 14,700 14,775 14,752 14,648
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