New Hartford, NY- October 26, 2010 -- PAR Technology Corporation (NYSE: PTC), a provider of integrated hardware, software and service solutions to the restaurant, hotel/resort, and hospitality industries, along with information technology services to the U.S. Department of Defense and federal and state government agencies, today reported third quarter 2010 financial results.
For the third quarter ended September 30, 2010, PAR reported revenues of $61.2 million, an increase of 22.6% over the $49.9 million reported for the third quarter of 2009. The Company reported net income of $538,000 and $0.04 earnings per diluted share for the quarter, compared to the net loss of $(778,000) and loss per diluted share of $(0.05) reported for the third quarter of 2009.
For the first nine months of 2010, PAR reported total revenues of $175.5 million, an increase of 6.5% over the $164.8 million reported for the first nine months of 2009. Net income for this nine month period was $2.0 million, or $0.13 earnings per diluted share. The results represent an increase from the net loss of $(293,000) and $(0.02) loss per diluted share reported for the first nine months of 2009.
Commenting on the quarter, John W. Sammon, Chairman and Chief Executive Officer, stated, “PAR made meaningful progress in the third quarter toward our longer-term goals of competitive and financial strength, despite a challenging business environment. Our restaurant technology business delivered a solid performance this quarter, highlighted by a 49% year over year increase in revenues. We are building momentum with large chains, notably McDonald’s and Subway Restaurants, both domestically and internationally, and are establishing traction with smaller chains with our PAR EverServ™ point-of-sale offerings. Given our ongoing investment in next generation software and hardware, we are encouraged that ParTech is well-positioned for the future.”
Sammon went on to state, “We also have been investing heavily in a next generation software platform for our hotel/resort/spa technology business. While the hospitality markets have encountered economic difficulty, and this business recently has experienced flat revenue while incurring operating losses as a result of their NextGen product initiatives, we remain confident our considerable investments in innovative hospitality solutions will position this business for robust growth. PAR is a leading vendor to the industry and, with its new software platform, should perform well in the markets they serve.”
“Our Logistics Management Systems business experienced mixed results for the quarter. Unexpectedly, due to economic pressure certain federal contract funds, which we had received for the prior five years, were not extended as had been expected. This funding loss had a negative impact on consolidated earnings per diluted share of $(0.03) for the third quarter and will impact the upcoming fourth quarter by $(0.02) per diluted share. On a positive note, this past quarter we announced two strategic relationships. We partnered with PeopleNet Communications Corporation to of fer solutions combining PAR’s trailer management systems with PeopleNet’s onboard computing and communications solutions. We also were selected by Chiquita Brands for deployment of our trailer management systems on their refrigerated trailer network.”
Conference Call
PAR will hold its quarterly conference call to discuss third quarter 2010 results later today at 4:30 p.m. Eastern Time. This call is being webcast by Thomson and can be accessed at PAR’s web site at www.partech.com. The call will also be available via telephone at 1- 866-362-4831 and reference passcode 61564892.
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 include 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 servi ce network. The Company has over 50,000 installations in 105 countries worldwide. PAR is also a leader in providing computer-based system design and engineering services to the U.S. Department of Defense and federal and state government agencies. 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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