PAR Technology has profitable Q4 and year, but firm ‘not satisfied’

NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) today reported a profit during the fourth quarter and the full year, compared to losses during the same periods in 2012.

But PAR’s top official indicates the firm is “not satisfied” with the results in 2013, according to its earnings news release.

At the same time, two members of the PAR board of directors, citing personal reasons, have indicated they won’t seek re-election to the board, the company said.

PAR Technology Corp. reported net income from continuing operations of $245,000, or 2 cents per share, during the fourth quarter that ended on Dec. 31.

Those figures compare with a net loss from continuing operations of $3.6 million, or 24 cents per share, during the same quarter a year ago.

On a non-GAAP basis, excluding certain charges, PAR’s net income from continuing operations for the fourth quarter of 2012 was $1.2 million or $0.08 per diluted share, PAR said.

The non-GAAP results exclude certain charges totaling $7.6 million, primarily related to restructuring of the company’s hospitality-product portfolio, as well as specific legal costs, according to the firm’s news release.

PAR generated revenue of nearly $60 million during the fourth quarter, which is down from the more than $66 million generated during the fourth quarter of 2012.

For the entire year that ended December 31, PAR reported net income from continuing operations of $569,000, or 4 cents per share, compared to a net loss of $1.8 million, or 12 cents per share, during 2012. 

On a non-GAAP basis, excluding certain charges, net income from continuing operations for 2013 was $1.1 million, 7 cents per share, compared to non-GAAP net income from continuing operations of $3.0 million, or 20 cents per share, during 2012, the company said.

PAR generated revenue from continuing operations of more than $241 million, which is down from the more than $245 million generated during 2012.

PAR Technology is “clearly not satisfied” with its operational performance in 2013, Ronald Casciano, CEO and president, said in the earnings news release.

“We are seeing early signs of momentum in our specific markets, but have more work to do to achieve consistent success. We continue to exploit our distinctive strengths including market presence, differentiated product and service offerings, strong brand and an improving portfolio of software.  PAR is in a stronger position to compete effectively in our core markets in 2014,” Casciano said.

PAR Technology is “aggressively pursuing” its new product initiatives and remains “confident that our business is being positioned for future growth and profitability,” Casciano added.

Besides the financial results, Sangwoo Ahn, chairman of the PAR board of directors, has indicated his intent to retire from the board at the upcoming 2014 shareholders’ meeting.

In addition, Kevin Jost and James Simms, both members of the PAR board of directors, have indicated they won’t stand for re-election to the board.

Both Jost and Simms will continue serving until their terms expire at the upcoming 2014 annual meeting.

“Each of these directors has assured me his decision was not a result of any disagreement with the company on any matter relating to the [firm’s] operations, policies, or practices.  The company has immediately commenced an extensive search for replacement candidates who will assist PAR in building long term value for our loyal shareholders,” Casciano said.

Shares of PAR Technology were trading down 3 cents per share at $5.15 per share this afternoon, according to Yahoo Finance.

Based in New Hartford, PAR provides hardware and software to the hospitality industry. Products from PAR also can be found in retailers, cinemas, cruise lines, stadiums, and food-service companies. PAR’s government business provides computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.

Contact Reinhardt at ereinhardt@cnybj.com