PAR Technology (PAR) 8-K Results of Operations and Financial Condition

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 27, 2010

PAR TECHNOLOGY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-09720	16-1434688
(State or other jurisdiction of organization)	(Commission File Number)	(I.R.S. Employer incorporation or Identification Number)

PAR Technology Park 8383 Seneca Turnpike New Hartford, NY	13413-4991
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (315) 738-0600

Not Applicable

 (Former Name or Former Address, if changed since Last Report)

Item 2.02 Results of Operations and Financial Condition.

(a) The information, including Exhibits attached hereto, in this Current Report is being furnished and shall not be deemed "filed" for the  purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that Section.  The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

(b) On July 27, 2010, PAR Technology Corporation issued a press release announcing its results of operation for the quarterly period ending June 30, 2010.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

99.1 Press Release dated July 27, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PAR TECHNOLOGY CORPORATION
	(Registrant)
Date:  July 27, 2010	/s/Ronald J. Casciano
	Ronald J. Casciano
	Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated July 27, 2010.

Exhibit 99.1  Press Release dated July 27, 2010.

FOR RELEASE:	New Hartford, NY, July 27, 2010
CONTACT:	Christopher R. Byrnes (315) 738 - 0600 ext. 226
	cbyrnes@partech.com, www.partech.com

PAR TECHNOLOGY CORPORATION

-REPORTS SECOND QUARTER RESULTS-

NEW HARTFORD, NY, PAR TECHNOLOGY CORPORATION (NYSE:PTC)

New Hartford, NY--July 27, 2010--PAR Technology Corporation (NYSE: PTC) today announced results for the second quarter ended June 30, 2010.

PAR reported second quarter revenues of $56.2 million, a 3.2% increase from the $54.5 million reported in the same period a year ago. Net income of $849,000 was reported for the second quarter 2010, compared with net income of $238,000 in the second quarter of 2009.  Diluted earnings per share were $0.06 for the second quarter of 2010, compared to diluted earnings per share of $0.02 for the second quarter of last year.

For the six months ended June 30, 2010, PAR reported revenues of $114.3 million versus the $114.9 million reported one year ago.  The Company reported net income of $1.4 million for the first six months of 2010 versus net income of $485,000 reported for the first six months of 2009 that resulted in earnings per diluted share of $0.10 in 2010 and $0.03 per diluted share over the same period in 2009.

John W. Sammon, PAR Chairman & CEO commented, “With increasing demand for a number of our hospitality technology solutions and improving business operations, our team delivered a solid quarter lead by our restaurant solutions business which turned in strong results contributing to the improved financial performance this quarter.  We are pleased with the improved results to date, yet we remain focused on key initiatives around customer acceptance and execution. Our longer-term goals continue to be achieving market leadership and sustained profitability.  We believe by accomplishing these goals, improved shareholder value will result.”

Sammon added, “We remain confident in our strategy.  The investments we are making in our NextGen product portfolios for hotels and restaurants will secure our strong position in hospitality technology, expand our addressable markets and accelerate market traction in these improving segments.”  With strong acceptance of our new products coupled with the leadership provided by our new management teams, we can anticipate continued future improvement.”

Certain Company information in this release or by its spokespersons from time to time may contain forward-looking statements.  Any statements in this document that do not describe historical facts are forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation, delays in new product introduction, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company’s products , risks of downturns in economic conditions generally, and in the quick service sector of the restaurant market specifically, risks of intellectual property rights associated with competition and competitive pricing pressures, risks associated with foreign sales and high customer concentration, and other risks detailed in the Company’s filings with the Securities and Exchange Commission.

ABOUT PAR TECHNOLOGY

PAR Technology Corporation creates and markets products that help hospitality operators around the world to better manage money, materials, people and the guest experience. PAR has provided hardware, software and services to the world's largest restaurant chains and their franchisees for almost 30 years.  Today the Company's extensive offering includes technology solutions for the full spectrum of hospitality operations, from boutique hotels and independent table service restaurants to international QSR chains, all backed by PAR’s global service network.  The Company has over 50,000 installations in 110 countries worldwide.  PAR is also a leader in providing computer-based system design and engineering services to the Department of Defense and various federal agencies.  Through PAR Logistics Management Systems, the Company is a provider of best of breed integrated solutions for shipping asset management and tracking.  PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol PTC.  For more information visit the Company’s website at www.partech.com.

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PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 (in thousands, except share amounts)

(unaudited)

	June 30,			December 31,
	2010			2009
Assets Current assets:
Cash and cash equivalents	$	3,943		$	3,907
Accounts receivable-net		40,496			46,107
Inventories-net		34,532			32,867
Income tax refunds		1,512			438
Deferred income taxes		5,664			6,362
Other current assets		4,645			3,235
Total current assets		90,792			92,916
Property, plant and equipment - net		6,017			6,332
Deferred income taxes		1,225			1,202
Goodwill		26,642			26,635
Intangible assets - net		8,491			7,243
Other assets		1,836			1,775
Total Assets	$	135,003		$	136,103
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	1,558		$	1,404
Borrowings under lines of credit		700			2,000
Accounts payable		15,130			12,942
Accrued salaries and benefits		8,292			7,607
Accrued expenses		2,710			3,868
Customer deposits		1,237			1,782
Deferred service revenue		14,613			16,598
Total current liabilities		44,240			46,201
Long-term debt		3,638			4,455
Other long-term liabilities		2,315			2,212
Shareholders’ Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized	─			─
Common stock, $.02 par value,
29,000,000 shares authorized;
16,603,721 and 16,449,695 shares issued;
14,950,966 and 14,796,940 outstanding		332			329
Capital in excess of par value		41,737			41,382
Retained earnings		48,913			47,482
Accumulated other comprehensive loss		(663	)		(449	)
Treasury stock, at cost, 1,652,755 shares		(5,509	)		(5,509	)
Total shareholders’ equity		84,810			83,235
Total Liabilities and Shareholders’ Equity	$	135,003		$	136,103

PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

	For the three months ended June 30,						For the six months ended June 30,
	2010			2009			2010			2009
Net revenues:
Product	$	23,084		$	17,178		$	44,335		$	37,415
Service		16,862			19,065			36,101			39,046
Contract		16,268			18,216			33,897			38,466
		56,214			54,459			114,333			114,927
Costs of sales:
Product		15,006			11,485			29,391			24,553
Service		10,901			13,385			23,949			27,862
Contract		15,218			17,227			31,813			36,463
		41,125			42,097			85,153			88,878
Gross margin		15,089			12,362			29,180			26,049
Operating expenses:
Selling, general and administrative		9,781			8,647			19,321			18,242
Research and development		4,321			3,048			7,766			6,357
Amortization of identifiable intangible assets		235			368			469			733
		14,337			12,063			27,556			25,332
Operating income		752			299			1,624			717
Other income, net		278			156			419			263
Interest expense		(71	)		(82	)		(142	)		(222	)
Income before provision for income taxes		959			373			1,901			758
Provision for income taxes		(110	)		(135	)		(470	)		(273	)
Net income	$	849		$	238		$	1,431		$	485
Earnings per share
Basic	$	.06		$	.02		$	.10		$	.03
Diluted	$	.06		$	.02		$	.10		$	.03
Weighted average shares outstanding
Basic		14,800			14,501			14,751			14,487
Diluted		15,031			14,787			14,993			14,757