NEW HARTFORD, N.Y. — PAR Technology Corp. (NYSE: PAR) has announced a “restructuring” of its hospitality business that it says will make the segment “more aligned” with its U.S.–based operations.
The company made the announcement last Thursday, as it reported a net loss of $385,000, or 2 cents a share, in the first 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.
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In a news release, the company said “it continues to review strategic and operational improvements involving its hospitality segment.”
PAR Technology expects the reorganization to “increase efficiencies and reduce operating costs.”
The firm’s news release didn’t indicate how many jobs PAR was cutting, if any, in this restructuring.
In connection with the changes, PAR will recognize a pre-tax charge in this year’s second quarter of about $500,000. The firm expects the initiatives to provide “ongoing” annual savings of at least $2 million.
PAR Technology will “continue to make necessary changes” in its hospitality segment to “improve long-term shareholder value through improved profitability and cash flow,” the company said in its release.
The “strategic” realignment demonstrates the steps PAR Technology continues to take as a company to lower operating costs and improve financial performance, Ronald Casciano, president and CEO of PAR Technology, said.
“These actions will position us to create greater operating leverage. The realignment better positions our company to sharpen our strategic focus, optimize investments, and execute on long-term growth and profitability objectives,” said Casciano.
In its earnings statement, PAR reported that its first-quarter net loss of $385,000, or 2 cents a share, was an improvement from a net loss of $989,000 or 6 cents per share, during the first quarter of 2014. It was also better than the $2 million loss, or 13 cents a share, PAR reported last quarter — the fourth quarter of 2014.
On a non-GAAP basis, PAR’s net income during the first quarter was $57,000, or 0 cents per share, compared to the net loss of $644,000, or 4 cents per share, reported in the year-earlier quarter.
PAR’s revenue of more than $59 million during the first quarter was up 5 percent from the $56.5 million it generated a year ago.
PAR announced its earnings results and restructuring before the open of trading last Thursday. Its stock price jumped 8 percent to $4.12 on Thursday, from $3.81 the day before. The share price then leaped another 7 percent to $4.42 on Friday. However, at that price, PAR’s stock was still down nearly 29 percent year to date. It suffered significant declines in February and March.
Contact Reinhardt at ereinhardt@cnybj.com
