NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on July 31 reported a net loss from continuing operations of $519,000, or 3 cents per share, in the second quarter that ended June 30. That figure compares to net income of $248,000, or 2 cents a share, during the same quarter in 2013, according to PAR […]
NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on July 31 reported a net loss from continuing operations of $519,000, or 3 cents per share, in the second quarter that ended June 30.
That figure compares to net income of $248,000, or 2 cents a share, during the same quarter in 2013, according to PAR Technology’s earnings news release.
The firm generated revenue from continuing operations of $57.4 million, down from $59.5 million in revenue generated during the year-earlier quarter, the company said.
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.
Lower revenue in PAR’s government segment, due to the timing of “certain task orders,” affected the quarter’s results, Ronald Casciano, president and CEO of PAR Technology, said in the news release.
“Our bottom line results were impacted by the continuing investments in our hospitality segment and specifically regarding our next generation hotel products.
However, we continue to make progress on executing that investment strategy and are making important strides towards broadening our customer base as well.
While certainly not satisfied with our results, we remain confident in our market opportunities and our leading technology and services in our hospitality and government segments,” said Casciano.
Conference-call comments
On the firm’s earnings conference call that same morning, Casciano indicated he was “encouraged” to report revenues in PAR’s hospitality business were up compared to the same time period in 2013 and 15 percent higher compared to the previous quarter, which he described as “sluggish.”
He reiterated that a “key” element of PAR’s strategy is to diversify its “go-to-market” activities toward a “broader” range of prospective customers.
“During the quarter, we experienced positive signs this strategy is gaining momentum, as our worldwide-dealer network revenue grew 48 percent over last year.
Our dealers were successful in selling our products, not only to restaurants, but other entertainment venues, including casinos and cinemas,” Casciano said in his remarks during the conference call.
He also noted that PAR’s “largest allocation” of new product investments is on the hotel side of the hospitality segment.
“Although the adoption rate for ATRIO has been slower than anticipated, we are continuing building our base and successfully deployed the system to a number of customers this quarter,” said Casciano.
ATRIO is a hospitality-management product.
In PAR’s government segment, the firm generated revenue of $19.5 million, a decline of 11 percent from the second quarter in 2013, he said.
“This decline in revenue was expected and is primarily attributed to the timing of requirements and task orders associated with our Eagle Intel-X ISR integration contract [with the U.S. Army] and due to the completion of additional technical-services contracts,” Casciano said.
PAR has a contract with the U.S. Army Research Development and Engineering Command (or DECOM) Natick Contracting Division to provide Intelligence Surveillance and Reconnaissance (ISR) technologies and services in support of the Eagle Intel-X effort, according to its website.
The company also continues to monitor the impact of federal-budget cuts on its government segment. But it does remain “confident” that the revenue decline is “simply a timing issue,” as the U.S. Department of Defense remains “consistent” with funding focused upon ISR initiatives in the Pentagon, said Casciano.
In Casciano’s closing remarks, he noted that PAR’s continued investment in next-generation products for its hospitality business is “impacting” its bottom-line results.
The firm remains “encouraged” in its cloud products, ATRIO and SureCheck, which are drawing “interest” from prospective and existing customers, according to Casciano.
SureCheck is a product that targets food safety in the restaurant portion of its hospitality business.
“We are regaining positive momentum in our restaurant business with the release of PAR Tablet 8 and by the accelerated growth in our distribution-channel business,” he said in his closing remarks.
PAR Tablet 8 is a point-of-sale tablet that restaurants can use.
PAR’s government segment “exceeded” the company’s internal plan, and the firm remains “confident” in its “go-forward strategy” in the segment.
“Our financial condition remains strong and we expect to utilize that strength to enhance our business opportunities within both segments. We expect that our company will return to profitability in the second half of the year,” Casciano said.
Contact Reinhardt at ereinhardt@cnybj.com