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Par Technology Corp. Reports Operating Results (10-K)

March 16, 2011 | About:
10qk

10qk

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Par Technology Corp. (PTC) filed Annual Report for the period ended 2010-12-31.

Par Technology Corp. has a market cap of $85.84 million; its shares were traded at around $5.71 with a P/E ratio of 31.72 and P/S ratio of 0.38.

Highlight of Business Operations:

The Company reported revenues of $239.9 million for the year ended December 31, 2010, An increase of 8% from the $223 million reported for the year ended December 31, 2009. The Company s net income for the year ended December 31, 2010 was $3.1million, or $0.21 earnings per diluted share, compared to a net loss of $5.2 million, or $0.36 loss per diluted share for the same period in 2009.

The Company reported revenues of $223 million for the year ended December 31, 2009, a decrease of 4% from the $232.7 million reported for the year ended December 31, 2008. The Company s net loss for the year ended December 31, 2009 was $5.2 million, or $0.36 loss per diluted share, compared to a net income of $2.2 million, or $0.15 earnings per diluted share for the same period in 2008. The results of 2009 include pre-tax non-recurring charges of $6.5 million. Of this amount, approximately $5.3 million was a non-cash charge related to the write-down of certain inventory associated with discontinued products. The remaining $1.2 million cash charge was related to personnel actions. In addition to the above charges, the 2009 results include a charge of $1.4 million related to the establishment of a valuation allowance for certain deferred tax assets.

Consolidated selling, general and administrative expenses for the year ended December 31, 2009 were $36.2 million, a decrease of 2% from the $36.8 million expense for the same period in 2008. The decrease was primarily due to a reduction in sales personnel in the Company s restaurant and hotel and spa businesses, partially offset by increases in the Company s Logistics Management business as well as non-recurring costs of $500,000 associated with personnel actions related to cost reduction initiatives executed during 2009.

Consolidated research and development expenses were $14.2 million for the year ended December 31, 2009, a decrease of 7% from the $15.3 million recorded in 2008. This decline was primarily attributable to cost reductions achieved in outsourcing through strategic relationships, which was partially offset by the Company s continued investment in its Logistics Management business as well as non-recurring costs of $500,000 associated with personnel actions related to cost reduction initiatives executed during 2009.

Cash used in investing activities was $6 million for the year ended December 31, 2010, versus $2.2 million for the same period in 2009. In 2010, capital expenditures were $3.8 million and were primarily related to the Company s acquisition of certain technology components to complement its next generation enterprise solution for its Restaurant business. Capitalized software costs relating to software development of Hospitality segment products were $2.1 million, an increase from the prior year as a result of investment in the Company s luxury hotel, resort and spa software. In 2009, capital expenditures were $1.3 million and were primarily for manufacturing and computer equipment. Capitalized software costs relating to software development of Hospitality segment products were $845,000 in 2009.

Cash used in financing activities was $3.2 million for the year ended December 31, 2010, versus cash used in financing of $7.3 million in 2009. In 2010, the Company decreased its short term borrowings by $2 million as a result of its favorable operating cash flow and decreased its long term debt by $1.4 million in accordance with the relate

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