NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) has started business in the year’s second quarter with a search for a new CFO and fresh off another profitable year for the firm. Karen Sammon, president and CEO of PAR Technology, discussed both the dismissal of Michael Bartusek and the firm’s strong financial performance in a […]
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NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) has started business in the year’s second quarter with a search for a new CFO and fresh off another profitable year for the firm.
Karen Sammon, president and CEO of PAR Technology, discussed both the dismissal of Michael Bartusek and the firm’s strong financial performance in a conference call on March 30 after the markets closed.
Based in New Hartford, PAR sells hardware and software to the hospitality industry. Its government business provides computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.
Earnings
PAR Technology earned $1.3 million, or 8 cents per share, in the fourth quarter, concluding another profitable year for the company.
The earnings figure compares to a net loss from continuing operations of $1 million, or 7 cents a share, during the same time period in 2014, the company said in its earnings news release issued March 30.
The firm generated sales of nearly $57 million during the fourth quarter, down about 4 percent compared to the $59 million generated during the final quarter of 2014. PAR cites “reductions in task orders” surrounding a contract as a factor in the revenue loss.
For the entire year, PAR Technology earned $4 million, or 26 cents per share, compared to $71,000, or 0 cents a share, in 2014. The firm’s revenue increased 5 percent to $229 million last year.
Sammon said in the release that she is “pleased” to report the improved fourth quarter and year-end results.
“Our restaurant technology business continues to see renewed strength from our Tier 1 customers, evidenced by the 6.6 percent product revenue growth in the fourth quarter when compared to the same period in 2014. We are seeing positive momentum with our cloud solutions, Brink POS and SureCheck, within restaurants and retail/grocery enterprises and are encouraged by the growth in software and software-related revenues in the quarter and for the year,” said Sammon. “PAR Government exceeded our internal plan for profit in the quarter while reporting lower revenues due to the higher than normal amount of task orders received in the fourth quarter [of] 2014 that were not duplicated this year. Our government business ended the year with several new contract awards in the quarter and an improved backlog that provides a solid base for our 2016 plan.”
Sammon’s tenure as CEO began at the start of the year following the retirement of Ronald Casciano.
“As our company’s new CEO, I am pleased with the operational, strategic, and financial progress made by PAR throughout last year and remain keenly focused on enhancing shareholder value,” said Sammon.
CFO dismissal
PAR Technology’s CEO says she is “confident” that the company’s former CFO was “acting alone” in making unauthorized investments, before the company fired him nearly three weeks ago.
Sammon made the comment during PAR’s March 30 conference call.
PAR Technology had announced on March 14 that it fired CFO Michael Bartusek. He was “terminated for cause” in connection with unauthorized investments “made in contravention of the company’s policies and procedures involving company funds,” according to a PAR news release.
“This activity does not involve customer billings, accounts receivables, or accounts payables, nor our operations in any way,” Sammon said in her remarks on the conference call.
The funds totaled less than $900,000. The unauthorized investments occurred during the period between Sept. 25 and Nov. 6 of last year, according to the release.
“Once I became aware of the situation, I notified the audit committee, which took the necessary steps quickly and decisively,” Sammon said.
The committee and the PAR Technology board of directors approved an internal investigation of the matter, which the committee supervised. The investigation is over, but PAR Technology continues to “pursue recovery of the transferred funds,” Sammon added.
“In lieu of the situation, we wrote down $776,000 in the fourth quarter of 2015 … the actual amount of the unauthorized investments,” the PAR Technology CEO added.
PAR Technology reported the matter to federal law-enforcement agencies, including the U.S. Securities and Exchange Commission. It’s also conducting a “thorough review” of its internal controls, according to the release.
The firm’s board of directors has directed Sammon to search for a new CFO. In the meantime, Matthew Trinkaus will continue to serve as PAR’s acting treasurer and principal accounting officer, the company said.
PAR hired Bartusek on July 20, 2015. He filled the position that Ronald Casciano, the firm’s former president and CEO, vacated when the PAR board of directors appointed Casciano to the top position following the resignation of Paul Domorski in March 2013.
