Casciano discusses revenue trends on conference call NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on May 1 reported a net loss from continuing operations of $989,000, or 6 cents per share, in the first quarter that ended March 31. That figure was worse than the net loss from continuing operations of $369,000, or 2 […]
Casciano discusses revenue trends on conference call
NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on May 1 reported a net loss from continuing operations of $989,000, or 6 cents per share, in the first quarter that ended March 31.
That figure was worse than the net loss from continuing operations of $369,000, or 2 cents per share, that PAR reported in the year-ago quarter.
Based in New Hartford, PAR provides hardware and software to the hospitality industry. PAR’s government business offers computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.
PAR Technology generated revenue of more than $56 million during the first quarter, down from more than $66 million during the year-earlier period.
The first-quarter results reflect a decline in revenue as the firm “periodically [experiences] volatility” regarding the timing of product deployments with certain major customers within its hospitality business, Ronald Casciano, president and CEO of PAR Technology, said in the earnings release.
PAR’s task orders on its ISR (intelligence, surveillance, and reconnaissance) contracts with the U.S. Department of Defense also experienced “volatility,” Casciano said.
Despite the revenue “challenges,” PAR has continued its cost-reduction initiatives to “help manage through this volatility,” he said.
“Although our first quarter results were challenging, we have continued our investment in new technologies associated with both our hospitality and government businesses. While these investments impact profitability, they are essential for the company’s long-term growth,” he added.
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.
Casciano’s conference-call comments
PAR’s hospitality / technology revenue totaled $32.8 million in the first quarter, down 18 percent from the same period in 2013.
“This decrease can be attributed to lower year-over-year revenues associated with our largest restaurant customers. Certain product deployments with these customers in the first quarter of 2013 were not duplicated in this most recent quarter,” Casciano said in his comments during PAR’s earnings conference call, also on May 1.
Casciano expects “improving conditions” with many of the firm’s accounts as the customers have communicated their commitment to increase their number of stores and upgrade technology within existing stores in 2014.
PAR in the first quarter released the latest version of SureCheck, its food safety and task-management product.
This product includes many international features and supports PAR’s initiatives in Europe, the U.K., China, and Mexico.
The company installed the SureCheck product in several Wegmans locations. PAR expects to have its entire network of stores online later this year.
The company also deployed SureCheck in several stores for “another large national grocery chain,” which Casciano didn’t name.
The revenue generated in PAR’s government-segment declined 11 percent in the quarter compared to the same period in 2013 as the firm saw additional “volatility” in the task orders associated with its contract with the U.S. Army’s Eagle Intel-X program.
At the same time, profit in that segment increased 22 percent over last year, driven by favorable performance on a fixed-price program, increased fees, and a one-time benefit due to favorable contract negotiations.
PAR also announced a five-year, $7.9 million contract to provide operation and maintenance-support services at the Naval Computer and Telecommunications facility in LaMoure, N.D., Casciano said.
“Our backlog remains strong in this segment and we continue to grow the pipeline available to our company in the area of intelligence, surveillance, and reconnaissance,” he said.
Contact Reinhardt at ereinhardt@cnybj.com