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

August 10, 2009 | About:

Par Technology Corp. (PTC) filed Quarterly Report for the period ended 2009-06-30.

PAR TECHNOLOGY CORP. designs develops manufactures markets installs and services microprocessor- based transaction processing systems for the restaurant and industrial market-places Corneal Topography systems for measuring the true topography of the eye and vision inspection systems for the food-processing industry (Commercial Segment). Co. is also engaged in the design and implementation of advanced-technology computer software systems for the Department of Defense and other Government agencies (Government Segment). Par Technology Corp. has a market cap of $77.92 million; its shares were traded at around $5.36 with a P/E ratio of 26.8 and P/S ratio of 0.33.

Highlight of Business Operations:

The Company reported revenues of $54.5 million for the quarter ended June

30, 2009, a decrease of 4.8% from the $57.2 million reported for the quarter

ended June 30, 2008. The Company\'s net income for the quarter ended June 30,

2009 was $238,000, or $.02 diluted earnings per share, compared to net income of

$674,000 and a $.05 diluted earnings per share for the same period in 2008.



The Company reported revenues of $114.9 million for the six months ended

June 30, 2009, an increase of 5.1% from the $109.3 million reported for the six

months ended June 30, 2008. The Company\'s net income for the six months ended

June 30, 2009 was $485,000, or $.03 diluted earnings per share, compared to a

net loss of $71,000 and a ($0.00) diluted net loss per share for the same period

in 2008.



Cash used in investing activities was $1.3 million for the six months ended

June 30, 2009 versus cash generated by investing activities of $233,000 for the

same period in 2008. In 2009, capital expenditures were $769,000 and were

primarily for manufacturing, office and computer equipment. Capitalized software

costs relating to software development of Hospitality segment products were

$464,000 in 2009. In 2008, the Company received $1.6 million from the voluntary

conversion of a Company-owned life insurance policy. In 2008, capital

expenditures were $695,000 and were principally for computer equipment.

Capitalized software costs relating to software development of Hospitality

segment products were $487,000 in 2008.



Cash used in financing activities was $3.6 million for the six months ended

June 30, 2009 versus cash provided of $5.2 million in 2008. In 2009, the Company

decreased its short-term borrowings by $3.3 million, decreased its long-term



debt by $501,000 and also benefited $190,000 from the exercise of employee stock

options. In 2008, the Company increased its short-term bank borrowings by $5.4

million, decreased its long-term debt by $357,000 and benefited $195,000 from

the exercise of employee stock options.



In September 2007, the Company entered into an interest rate swap agreement

associated with the above $6 million loan, with principal and interest payments

due through August 2012. At June 30, 2009, the notional principal amount totaled

$4.7 million. This instrument was utilized by the Company to minimize

significant unplanned fluctuations in earnings and cash flows caused by interest

rate volatility. The Company did not adopt hedge accounting under the provision

of FASB Statement No 133, Accounting for Derivative Instruments and Hedging

Activities, but rather records the fair market value adjustments through the

consolidated statements of operations each period. The associated fair value

adjustment for the three and six months ended June 30, 2009, respectively, are:

$65,800 and $87,600 and are included as a decrease to interest expense.



Read the The complete Report

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