New Hartford, NY- November 14, 2016 — PAR Technology Corporation (NYSE: PAR) today announced results from continuing operations for the third quarter ended September 30, 2016.
Summary of Fiscal 2016 Third Quarter and Year-to-Date Financial Results
- Revenues were reported at $61.5 million in the third quarter of fiscal 2016, compared to $58.1 million in the same period in 2015, a 6.1% increase.
- GAAP net income in the third quarter of fiscal 2016 was $518,000, or $0.03 per diluted share, compared to a GAAP net income of $1.3 million, or $0.08 earnings per diluted share in the same period in 2015.
- Non-GAAP net income in the third quarter of fiscal 2016 was $1.6 million, or $0.10 per diluted share, compared to non-GAAP net income of $1.7 million, or $0.11 earnings per diluted share, in the same period in 2015.
- Revenue decreased to $169.5 million in the first nine months of fiscal 2016, compared to $172.2 million in the same period in 2015.
- GAAP net income in the first nine months of fiscal 2016 was $633,000 or $0.04 earnings per diluted share, compared to GAAP net income of $2.6 million, or $0.16 earnings per diluted share, in the same period in 2015.
- Non-GAAP net income in the first nine months of fiscal 2016 was $3.1 million, or $0.20 per diluted share, compared to non-GAAP net income of $4.1 million or $0.26 earnings per diluted share, in the same period in 2015.
A reconciliation and description of non-GAAP financial measures to their comparable GAAP financial measures are included in the tables following this news release.
“Our performance in the quarter was a result of strength across both of PAR’s segments evidenced by revenue growth of 5.9% over the third quarter in 2015 and a 17.0% increase sequentially from the previous quarter. We are seeing increased demand from our Restaurant/Retail Tier 1 customers, and also had increased deployments of our Brink cloud platform-as-a-service solution in the recently ended quarter,” commented Karen E. Sammon, PAR Technology Corporation President and Chief Executive Officer. “The success of PAR’s cloud solutions have favorably impacted our business as reflected by a 75% rise in our SaaS revenues from the third quarter last year. I am also pleased to report that our Government segment had a strong quarter as revenues increased by 4.9% over the prior year third quarter as we continue to add new contract awards and extensions and our backlog in this segment at the end of the quarter is a very healthy $122.4 million.” Sammon continued, “PAR is bringing new technology to market at a rapid pace to address critical customer needs leveraging cloud technology, IoT and machine learning coupled with our passion for customer success. Our value proposition is resonating in the marketplace, positioning our Company as a mission-critical partner for companies looking to succeed in the emerging outcomes-based economy. We are committed to excellence throughout our organization, with our products and for all of our stakeholders. Our innovation supported by our proven track record in the markets we serve is fueling our performance and sets our Company up for future growth.”
Disclosed in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016 to be filed with the Securities and Exchange Commission (“SEC”) today, the Company discovered and is currently investigating potential improper import/export and/or documentation of sales activities arising out of conduct in the Company’s China and Singapore offices. While it has been determined that no amendments need to be made to the Company’s prior period consolidated financial statements, material weaknesses in internal controls with respect to oversight of the sales operations in China and Singapore have been identified. The Company has notified the SEC, and is developing and implementing remediation plans and corrective actions to fully address the identified material weaknesses in its internal control over financial reporting. If the SEC or other governmental agencies were to open an investigation, the Company could be exposed to sanctions, including fines, penalties, disgorgement and/or injunctive relief. As a result of the foregoing, the Company’s principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of September 30, 2016.
Certain Company information in this release or statements made 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 Corporation
PAR Technology Corporation’s stock is traded on the New York Stock Exchange under the symbol PAR. PAR’s Hospitality segment has been a leading provider of restaurant and retail technology for more than 35 years. PAR offers technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. Products from PAR also can be found in retailers, cinemas, cruise lines, stadiums and food service companies. PAR’s Government Business is a leader in providing computer-based system design, engineering and technical services to the Department of Defense and various federal agencies. For more information visit https://www.partech.com or connect with us on Facebook and Twitter.
There will be a conference call at 10:00 a.m. (Eastern) on November 14, 2016, during which the Company’s management will discuss the financial results for the third quarter of 2016. To participate in the call, please call (866) 868-9502, approximately 10 minutes in advance. No passcode is required to participate in the live call or to listen to the replay version. Individual & Institutional Investors will have the opportunity to listen to the conference call/event over the internet by visiting PAR’s website at www.partech.com. Alternatively, listeners may access an archived version of the presentation call after 1:00 p.m. on November 14, 2016 through November 21, 2016 by dialing (855) 859-2056 and input conference ID 8561827.