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): July 27, 2004
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 12. 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 July 27, 2004, PAR Technology Corporation issued a press release
announcing its results of operation for the quarterly period ending June
30, 2004. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.
99.1 Press Release dated July 27, 2004.
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: July 27, 2004
/s/RONALD J. CASCIANO
---------------------------------------
Ronald J. Casciano
Vice President, Chief Financial Officer
and Treasurer
EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
99.1 Press Release dated July 27, 2004.
Exhibit 99.1
PAR TECHNOLOGY CORPORATION
-REPORTS RECORD QUARTERLY RESULTS-
Revenues Rise 34%, Highest Quarterly Revenue in Company's History
Net Income Grows more than 300%
EPS Rises to $0.14 versus $0.04 a year ago
----------------------------------------------------------------
NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)
New Hartford, NY--July 27, 2004--PAR Technology Corporation (NYSE:PTC - News)
today announced record results for the second quarter ended June 30, 2004.
PAR reported second quarter revenues of $42.9 million, a 34% increase from the
$32 million reported in the same period a year ago. Net income for the second
quarter 2004 was $1.3 million or $0.14 diluted earnings per share. This compares
to $308,000 net income and $0.04 diluted earnings per share in the second
quarter 2003.
For the six months ended June 30, 2004, PAR Technology Corporation reported
revenues of $80.8 million, a 29% increase from the $62.6 million reported one
year ago. The Company also reported net income for the first six months of 2004
of $2 million or $0.22 diluted earnings per share. This compares to net income
of $537,000 and $0.06 diluted earnings per share for the first six months of
2003.
John W. Sammon, PAR Chairman and CEO commented on the results "It was a very
good quarter in all respects. The nearly $43 million in revenue is the highest
revenue of any quarter in our Company's history. Our record results came from
increases in sales of both Hospitality Technology solutions and services as well
as increases in our Government business. I am proud of our organization as we
continue to execute well, and maintain our strong position in excellent and
diversified markets.
Sammon concluded, "I am inspired by the accomplishments of the entire PAR team
which resulted in the record results for the quarter. PAR will continue to focus
upon improving our returns on capital and, ultimately, shareholder returns by
investing in our selected markets and products."
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 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 35,000
systems installed in over 95 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)
June 30, December 31,
2004 2003
-------- ---------
Assets
Current Assets:
Cash .................................................. $ 2,619 $ 1,467
Accounts receivable-net ............................... 29,462 31,876
Inventories-net ....................................... 30,379 31,894
Deferred income taxes ................................. 6,320 6,486
Other current assets .................................. 2,086 2,472
Total assets of discontinued operation ................ -- 20
-------- --------
Total current assets .............................. 70,866 74,215
Property, plant and equipment - net ........................ 7,416 7,240
Deferred income taxes ...................................... 2,019 2,857
Other assets ............................................... 3,370 2,855
-------- --------
$ 83,671 $ 87,167
======== ========
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt ..................... $ 92 $ 89
Borrowings under lines of credit ...................... -- 6,989
Accounts payable ...................................... 10,162 8,301
Accrued salaries and benefits ......................... 5,985 5,461
Accrued expenses ...................................... 2,073 2,471
Deferred service revenue .............................. 5,321 5,947
Total liabilities of discontinued operation ........... 429 578
-------- --------
Total current liabilities ......................... 24,062 29,836
-------- --------
Long-term debt ............................................. 2,045 2,092
-------- --------
Commitments and contingent liabilities Shareholders' Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized ......................... -- --
Common stock, $.02 par value,
19,000,000 shares authorized;
10,065,287 and 9,966,062 shares issued;
8,654,600 and 8,555,375 outstanding ................ 201 199
Capital in excess of par value ........................ 30,270 29,761
Retained earnings ..................................... 34,423 32,375
Accumulative other comprehensive loss ................. (277) (43)
Treasury stock, at cost, 1,410,687 shares ............. (7,053) (7,053)
-------- --------
Total shareholders' equity ........................ 57,564 55,239
-------- --------
$ 83,671 $ 87,167
======== ========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
For the three months For the six months
ended June 30, ended June 30,
-------------------- --------------------
2004 2003 2004 2003
-------- -------- -------- --------
Net revenues:
Product ........................... $ 19,466 $ 13,059 $ 35,705 $ 25,412
Service ........................... 10,570 8,634 20,877 17,103
Contract .......................... 12,889 10,318 24,241 20,038
-------- -------- -------- --------
42,925 32,011 80,823 62,553
-------- -------- -------- --------
Costs of sales:
Product ........................... 13,231 8,528 24,268 16,590
Service ........................... 9,084 7,242 18,029 14,409
Contract .......................... 12,082 9,897 22,612 19,169
-------- -------- -------- --------
34,397 25,667 64,909 50,168
-------- -------- -------- --------
Gross margin ................ 8,528 6,344 15,914 12,385
-------- -------- -------- --------
Operating expenses:
Selling, general and administrative 5,245 4,700 10,261 9,111
Research and development .......... 1,302 1,262 2,645 2,421
-------- -------- -------- --------
6,547 5,962 12,906 11,532
-------- -------- -------- --------
Operating income ....................... 1,981 382 3,008 853
Other income, net ...................... 187 313 398 389
Interest expense ....................... (46) (152) (119) (295)
-------- -------- -------- --------
Income from continuing operations
before provision for income taxes .... 2,122 543 3,287 947
Provision for income taxes ............. (810) (192) (1,239) (340)
-------- -------- -------- --------
Income from continuing operations ...... 1,312 351 2,048 607
-------- -------- -------- --------
Discontinued operations:
Loss from operations of
discontinued component ......... -- (67) -- (109)
Income tax benefit ................ -- 24 -- 39
-------- -------- -------- --------
Loss on discontinued operations ... -- (43) -- (70)
-------- -------- -------- --------
Net income ............................. $ 1,312 $ 308 $ 2,048 $ 537
======== ======== ======== ========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Continued)
(In Thousands Except Per Share Amounts)
(Unaudited)
For the three months For the six months
ended June 30, ended June 30,
--------------------- ---------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Earnings per share:
Basic:
Income from continuing operations $ .15 $ .04 $ .24 $ .07
Loss from discontinued operations $ -- $ (.01) $ -- $ (.01)
Net income ................ $ .15 $ .04 $ .24 $ .06
Diluted:
Income from continuing operations $ .14 $ .04 $ .22 $ .07
Loss from discontinued operations $ -- $ -- $ -- $ (.01)
Net income ................ $ .14 $ .04 $ .22 $ .06
Weighted average shares outstanding
Basic ........................... 8,636 8,422 8,603 8,398
========= ========= ========= =========
Diluted ......................... 9,192 8,765 9,156 8,766
========= ========= ========= =========