NEW HARTFORD, N.Y. — PAR Technology Corp. (NYSE: PAR) reported that it lost $2 million, or 13 cents a share, in the fourth quarter.
That’s compared to net income of $245,000, or 2 cents per share, for the same period in 2013.
PAR Technology announced its results in a news release distributed Monday after markets closed.
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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.
During 2014, the company recorded total charges of $2,224,000, which included $1,185,000 of equity-based compensation expense.
The remaining $1,039,000 expense related to severance charges of $597,000, acquisition related expenses of $163,000, and amortization of acquired-intangible assets of $279,000.
In addition, PAR Technology recorded income-tax expense of more than $1.5 million, “primarily associated with the repatriation of earnings from a foreign, wholly owned subsidiary,” according to its earnings news release.
Without the charges, PAR Technology reported net income from continuing operations of $776,000, or 5 cents per share, in the fourth quarter compared to adjusted net income from continuing operations of $414,000, or 3 cents a share, in the same period in 2013, the company said.
The firm also generated revenue of more than $63 million in the latest quarter, up 6 percent from the nearly $60 million generated in the fourth quarter of 2013.
For the entire year, PAR Technology reported a net loss from continuing operations of $3.7 million, or 24 cents a share, compared to net income of $569,000 or 4 cents per share, during fiscal year 2013.
For the year ended Dec. 31, 2013, the company recorded total charges of $1,444,000, which included equity-based compensation expense of $187,000 and other charges of $1,257,000.
The other charges of $1,257,000 were composed of $986,000 for separation related charges and legal costs of $271,000 associated with an intellectual property matter that was settled during 2013.
Without the charges, the firm’s adjusted net income from continuing operations was $83,000, or 1 cent per share, compared to adjusted net income from continuing operations of $1.5 million, or 10 cents per share, during 2013.
The company generated revenue of more than $233 million in 2014, down from $241 million in 2013.
PAR is “encouraged” with the “improved” performance in the quarter [in considering the results excluding the charges], Ronald Casciano, president & CEO, said in the news release.
The performance indicates the company is making “progress,” with the revenue growth in both its hospitality and government segments as evidence, he added.
“Within our hospitality segment, we have continued to experience success with our strategy of increasing our revenue generated through sales to smaller chains and independent restaurants, a strategy further facilitated by our acquisition of Brink Software in September of last year. Partially offsetting the revenue growth was a reduction in volume from certain large-restaurant customers resulting from the completion of technology rollouts in prior periods. To mitigate the revenue volatility created by our tier-one customers, we are committed to our revenue-diversification strategy and are encouraged by the recent market acceptance and adoption of our cloud technologies,” said Casciano.
He also noted that PAR Technology’s government business continued to perform well resulting from an increase in task orders on its large ISR (intelligence, surveillance, and reconnaissance) contracts.
Casciano called 2014 a “year of transition” for PAR as the firm added new directors to its board and made “several changes” to its management structure.
“We have recommitted the company to focus and execute upon our strategic goals to reestablish PAR as a consistent performing technology-solutions company,” said Casciano.
Shares of PAR Technology were trading down 27 cents, or nearly 6 percent, at $4.39 per share as of 1:25 p.m. today, according to Yahoo Finance.
Contact Reinhardt at ereinhardt@cnybj.com
