SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1999. Commission File Number 1-9720
OR
[ ] TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From __________ to __________
Commission File Number __________
PAR TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 16-1434688
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
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
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
The number of shares outstanding of registrant's common stock, as of April
30, 1999 - 8,411,365 shares.
<PAGE>
PAR TECHNOLOGY CORPORATION
TABLE OF CONTENTS
FORM 10-Q
PART 1
FINANCIAL INFORMATION
Item Number
-----------
Item 1. Financial Statements
- Consolidated Statement of Income for
the Three Months Ended March 31, 1999
and 1998
- Consolidated Statement of Comprehensive Income for
the Three Months Ended March 31, 1999 and 1998
- Consolidated Balance Sheet at
March 31, 1999 and December 31, 1998
- Consolidated Statement of Cash Flows
for the Three Months Ended
March 31, 1999 and 1998
- Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
Signatures
Exhibit Index
<PAGE>
Item 1.
Financial Statements
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
---- ----
<S> <C> <C>
Net revenues:
Product ....................................... $ 22,045 $ 7,961
Service ....................................... 8,666 6,955
Contract ...................................... 5,035 6,265
-------- --------
35,746 21,181
-------- --------
Costs of sales:
Product ....................................... 13,678 5,649
Service ....................................... 8,066 6,392
Contract ...................................... 4,756 5,982
-------- --------
26,500 18,023
-------- --------
Gross margin ............................ 9,246 3,158
-------- --------
Operating expenses:
Selling, general and administrative ........... 5,739 4,569
Research and development ...................... 2,213 1,338
Non-recurring benefit ......................... -- (100)
-------- --------
7,952 5,807
-------- --------
Income (loss) from operations ...................... 1,294 (2,649)
Other income, net .................................. 49 145
Interest expense ................................... (117) --
-------- --------
Income (loss) before provision for income taxes .... 1,226 (2,504)
Provision (benefit) for income taxes ............... 460 (877)
-------- --------
Net income (loss) .................................. $ 766 $ (1,627)
======== ========
Earnings (loss) per common share
Diluted ....................................... $ .09 $ (.18)
======== ========
Basic ......................................... $ .09 $ (.18)
======== ========
Weighted average shares outstanding
Diluted ....................................... 8,607 8,895
======== ========
Basic ......................................... 8,482 8,895
======== ========
</TABLE>
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
---- ----
<S> <C> <C>
Net income (loss) .................................... $ 766 $(1,627)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments ........ (79) 206
------- -------
Comprehensive income (loss) .......................... $ 687 $(1,421)
======= =======
</TABLE>
<PAGE>
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In Thousands Except Share Amounts)
<TABLE>
<CAPTION>
March 31,
1999 December 31,
Assets (Unaudited) 1998
- ------ ----------- ----
<S> <C> <C>
Current Assets:
Cash .................................................. $ 1,163 $ 1,298
Accounts receivable-net ............................... 44,655 47,137
Inventories ........................................... 32,991 27,260
Deferred income taxes ................................. 3,377 3,208
Other current assets .................................. 1,531 1,367
-------- --------
Total current assets .............................. 83,717 80,270
Property, plant and equipment - net ........................ 8,441 8,465
Other assets ............................................... 4,505 4,691
-------- --------
$ 96,663 $ 93,426
======== ========
Liabilities and Shareholders' Equity
Current Liabilities:
Notes payable ......................................... $ 8,617 $ 7,387
Accounts payable ...................................... 9,901 9,789
Accrued salaries and benefits ......................... 5,131 4,731
Accrued expenses ...................................... 3,198 3,427
Income taxes payable .................................. 1,266 273
Deferred service revenue .............................. 5,302 4,376
-------- --------
Total current liabilities ......................... 33,415 29,983
-------- --------
Deferred income taxes ...................................... 553 617
-------- --------
Shareholders' Equity:
Common stock, $.02 par value,
19,000,000 shares authorized;
9,513,571 shares issued
8,420,465 and 8,548,665 outstanding ................. 190 190
Preferred stock, $.02 par value,
1,000,000 shares authorized ......................... -- --
Capital in excess of par value ........................ 28,050 28,050
Retained earnings ..................................... 40,988 40,222
Accumulative comprehensive income ..................... (626) (547)
Treasury stock, at cost, 1,093,106 and 964,906 shares (5,907) (5,089)
-------- --------
Total shareholders' equity ........................ 62,695 62,826
-------- --------
Contingent liabilities
-------- --------
$ 96,663 $ 93,426
======== ========
</TABLE>
<PAGE>
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
For the Three Months Ended March 31,
-----------------------------------
1999 1998
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) ........................................................... $ 766 $(1,627)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization ............................................. 638 542
Provision for obsolete inventory .......................................... 1,115 655
Translation adjustments ................................................... (79) 206
Increase (decrease) from changes in:
Accounts receivable-net ................................................. 2,482 3,321
Inventories ............................................................. (6,846) (299)
Income tax refund claims ................................................ -- (653)
Other current assets .................................................... (164) 308
Other assets ............................................................ (39) (596)
Accounts payable ........................................................ 112 (4,637)
Accrued salaries and benefits ........................................... 400 230
Accrued expenses ........................................................ (229) 392
Deferred service revenue ................................................ 926 (139)
Income taxes payable .................................................... 993 --
Deferred income taxes ................................................... (233) 173
------- -------
Net cash used by operating activities .................................. (158) (2,124)
------- -------
Cash flows from investing activities:
Capital expenditures ...................................................... (305) (427)
Capitalization of software costs .......................................... (84) (261)
------- -------
Net cash used by investing activities .................................. (389) (688)
------- -------
Cash flows from financing activities:
Net borrowings (payments) under line-of-credit agreements ................. 1,230 (195)
Proceeds from the exercise of stock options ............................... -- 100
Acquisition of treasury stock ............................................. (818) --
------- -------
Net cash provided (used) by financing activities ...................... 412 (95)
------- -------
Net decrease in cash and cash equivalents .................................. (135) (2,907)
Cash and cash equivalents at beginning of year ............................. 1,298 3,977
------- -------
Cash and cash equivalents at end of period ................................. $ 1,163 $ 1,070
======= =======
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest .................................................................. $ 117 $ 2
Income taxes paid, net of refunds ......................................... (349) (393)
</TABLE>
<PAGE>
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The statements for the three months ended March 31, 1999 and 1998 are
unaudited; in the opinion of the Company such unaudited statements include
all adjustments (which comprise only normal recurring accruals) necessary
for a fair presentation of the results for such periods. The consolidated
financial statements for the year ending December 31, 1999 are subject to
adjustment at the end of the year when they will be audited by independent
accountants. The results of operations for the three months ended March 31,
1999 are not necessarily indicative of the results of operations to be
expected for the year ending December 31, 1999. The consolidated financial
statements and notes thereto should be read in conjunction with the
financial statements and notes for the years ended in December 31, 1998 and
1997 included in the Company's December 31, 1998 Annual Report to the
Securities and Exchange Commission on Form 10-K. Earnings per share are
based on the weighted average number of shares outstanding plus common
stock equivalents under the Company's stock option plans.
2. Inventories are used in the manufacture of Point-Of-Sale systems and other
commercial products. The components of inventory, net of related reserves,
consist of the following:
(In Thousands)
--------------
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
---- ----
<S> <C> <C>
Finished goods ......................... $ 9,763 $ 7,377
Work in process ........................ 2,944 2,234
Component parts ........................ 7,963 7,342
Service parts .......................... 12,321 10,307
------- -------
$32,991 $27,260
======= =======
</TABLE>
At March 31, 1999 and December 31, 1998, the Company had recorded reserves
for obsolete inventory of $2,671,000 and $2,123,000, respectively.
<PAGE>
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
3. The Company's reportable segments are strategic business units that have
separate management teams and infrastructures that offer different products
and services. The Company has three reportable segments. The Transaction
Processing segment offers integrated solutions to the restaurant and
manufacturing/warehousing industries. These offerings include industry
leading hardware and software applications utilized at the point-of-sale,
back of store, corporate office and in the manufacturing/warehousing
environment. This segment also offers customer support including field
service, installation, twenty-four hour telephone support and depot repair.
The Government segment designs and implements advanced technology computer
software systems primarily for military and intelligence agency
applications. It provides services for operating and maintaining certain
U.S. Government-owned test sites, and for planning, executing and
evaluating experiments involving new or advanced radar systems. The Vision
segment designs, manufactures, sells, installs and services image
processing systems for the food-processing industry. Inter-segment sales
and transfers are not material.
<PAGE>
Information as to the Company's operations in these three segments is set
forth below:
<TABLE>
<CAPTION>
Quarter ended March 31,
(In Thousands)
--------------
1999 1998
---- ----
<S> <C> <C>
Revenues:
Transaction Processing .................. $ 30,620 $ 14,860
Government .............................. 5,035 6,265
Vision .................................. 91 56
-------- --------
Total ............................. $ 35,746 $ 21,181
======== ========
Income (loss) from operations:
Transaction Processing .................. $ 1,276 $ (2,654)
Government .............................. 234 283
Vision .................................. (216) (378)
Nonrecurring benefit .................... -- 100
-------- --------
1,294 (2,649)
Other income, net ............................ 49 145
Interest expense ............................. (117) --
-------- --------
Income (loss) before provision
for income taxes ........................ $ 1,226 $ (2,504)
======== ========
Depreciation and amortization:
Transaction Processing .................. $ 513 $ 356
Government .............................. 29 107
Vision .................................. 12 19
Corporate ............................... 84 60
-------- --------
Total ............................. $ 638 $ 542
======== ========
Capital expenditures:
Transaction Processing .................. $ 236 $ 383
Government .............................. -- 5
Vision .................................. 27 3
Corporate ............................... 42 36
-------- --------
Total ............................. $ 305 $ 427
======== ========
</TABLE>
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
-------- -----------
<S> <C> <C>
Identifiable assets:
Transaction Processing .................. $86,791 $83,569
Government .............................. 6,892 6,022
Vision .................................. 1,267 1,520
Corporate ............................... 1,713 2,315
------- -------
Total ............................. $96,663 $93,426
======= =======
</TABLE>
<PAGE>
The following table presents revenues by geographic area based on the
location of the use of the product or services.
<TABLE>
<CAPTION>
Quarter ended March 31,
(In Thousands)
--------------
1999 1998
-------- --------
<S> <C> <C>
United States .......................... $31,745 $17,817
Other Countries ........................ 4,001 3,364
------- -------
Total ............................ $35,746 $21,181
======= =======
</TABLE>
The following table presents property by geographic area based on the
location of the asset.
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
---- ----
<S> <C> <C>
United States .......................... $89,510 $84,656
Other Countries ........................ 7,153 8,770
------- -------
Total ............................ $96,663 $93,426
======= =======
</TABLE>
Customers comprising 10% or more of the Company's total revenues are
summarized as follows:
<TABLE>
<CAPTION>
Quarter ended March 31,
1999 1998
---- ----
<S> <C> <C>
Transaction Processing segment:
McDonald's Corporation ......................... 47% 28%
Tricon Corporation ............................. 20% 26%
Government segment:
Department of Defense .......................... 14% 30%
All Others ......................................... 19% 16%
--- ---
100% 100%
=== ===
</TABLE>
Substantially all revenues derived by the Government segment arise from
Federal government contracts, or subcontracts related thereto, virtually all of
which are with the Department of Defense.
<PAGE>
Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1999
COMPARED WITH
QUARTER ENDED MARCH 31, 1998
The Company reported revenues of $35.7 million for the first quarter ended
1999, an increase of 69% from the $21.2 million reported in 1998. Net income was
$766,000 or diluted earnings per share of $.09 for 1999. This compares to a net
loss of $1.6 million or a diluted loss per share of $.18 for 1998.
Product revenues were $22 million in 1999, an increase of 177% from the
$8.0 million recorded in 1998. This growth was led by increased domestic sales
to McDonald's Corporation. The Company's POS 4 hardware products have been
approved and accepted by this major customer and meet the requirements of their
"Made for You" initiative. Higher sales to Tricon Restaurants also contributed
to this increase. The Company also recorded a 29% increase in international
product revenue with growth recorded in the Europe, South America and the Middle
East. Burger King and McDonald's were the primary international customers
accounting for this increase. The Company's manufacturing/warehousing product
line, which recently received SAP certification for the latest release of their
R/3 ERP product, also contributed to this revenue growth.
Customer service revenues were $8.7 million in 1999, an increase of 25%
from the $7.0 million in 1998. The primary reason for this growth was higher
installation revenue which is directly related to the increased product revenue
discussed above. The Company's service offerings include installation,
twenty-four hour help desk support and various field and on-site service
options.
Contract revenues were $5 million in 1999, a decrease of 20% when compared
to the $6.3 million recorded in the same period in 1998. This decrease was due
to the completion of major airfield management contract in the third quarter of
1998. This decrease was partially offset by the recently awarded $9 million
multi-year contract for our Cargo*Mate identification and monitoring system from
the Department of Transportation. The Company anticipates a return to growth in
this business in the second half of 1999.
Product margins were 38% for 1999 compared to 29% for the same period in
1998. This improvement was due to favorable product mix. The Company was still
selling some older product lines with lower margins in the first quarter of
1998.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1999
COMPARED WITH
QUARTER ENDED MARCH 31, 1998
Additionally, the software content of product revenue increased in the
transaction processing product lines in the first quarter of 1999. Savings
realized on certain component parts also contributed to the margin improvement.
Customer service margins were 7% in 1999 compared to 8% for the same period
in 1998. The Company is continuing its investments in service personnel,
training and service integration and help desk capabilities. These initiatives,
coupled with the installation of a new service management system, will result in
lower costs and improved customer satisfaction in the future.
Contract margins were 5.5% in 1999 compared to 4.5% for the same period in
1998. This increase is primarily due to contract mix. Margins on the Company's
government contract business typically run between 5% and 6%.
Selling, general and administrative expenses were $5.7 million in 1999
versus $4.6 million for the same period in 1998, an increase of 26%. Consistent
with its growth plans, the Company has expanded its sales force in both the POS
and Manufacturing/Warehouse areas.
Research and development expenses were $2.2 million in 1999, an increase of
65% from the $1.3 million recorded for the same period in 1998. The Company is
increased its investment in POS software development, including applications for
the front and back of the store and for interfacing store information to the
home office. The Company is also investing in software products for interface
with SAP enterprise solutions. Research and development costs attributable to
government contracts are included in cost of contract revenues.
Interest expense represents interest charged on the Company's short-term
borrowing requirements from banks.
Liquidity and Capital Resources
The Company's primary source of liquidity has been from operations. Cash
used by operating activities was $158,000 in the first quarter of 1999, compared
to cash used of $2.1 million in 1998.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1999
COMPARED WITH
QUARTER ENDED MARCH 31, 1998
During the first quarter of 1999, the Company increased its inventory
levels in anticipation of future demand and to meet the growing service parts
requirements as its customer base increases. This was partially offset by
accounts receivable collections, net income for the period and a federal income
tax refund. Cash flow in the first quarter of 1998 was impacted primarily by the
timing of accounts payable disbursements, offset by collection of accounts
receivable.
Cash used in investing activities was $389,000 for the first quarter of
1999 compared to $688,000 in 1998. In 1999, capital expenditures were for the
continued upgrade to the Company's customer service center and for PC equipment.
In 1998, capital expenditures were primarily for upgrades to the Company's
customer service center and for manufacturing equipment.
Cash provided by financing activities was $412,000 for the first quarter of
1999 compared to cash used of $95,000 in 1998. In 1999, the Company received
advances on its lines of credit totaling $1.2 million. The Company also
repurchased 128,200 shares of its stock for $818,000. In 1998, the Company
repaid its line-of-credit indebtedness of $195,000 and received $100,000 from
the exercise of employee stock options.
The Company has line-of-credit agreements, which aggregate $35 million with
certain banks, of which $26.4 million were unused at March 31, 1999. The Company
believes that it has adequate financial resources to meet its future liquidity
and capital requirements.
Year 2000 Disclosure-- The "Year 2000 problem" exists because many computer
programs use only the last two digits to refer to a year. Therefore these
computer programs do not properly recognize a year beginning with "20", instead
of the familiar "19". The Year 2000 problem affects virtually all computer
systems, processes, and products in all segments of society.
The Company has identified the following areas which could be impacted by
the Year 2000 issue. They are: Company products, internally used systems and
software, and products or services provided by key third parties or business
partners. If the Company experiences Year 2000 issues resulting from failures in
any of these areas, the results could conceivably have a material adverse effect
on the Company.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1999
COMPARED WITH
QUARTER ENDED MARCH 31, 1998
In 1997, the Company established a corporate-wide program to address the
Year 2000 issue. The objective of this program is to identify, assess, and
address any issues associated with its infrastructure, operations, and products
in transitioning to Year 2000. The Company's cross-functional Year 2000 Task
Force includes senior management personnel who have responsibility for ensuring
Year 2000 program tasks are completed in support of all PAR business functions
and locations. Year 2000 progress reports are also presented regularly to
executive management and the Company's Board of Directors.
The multi-phase Year 2000 program includes: (1) education of Company
personnel on the Year 2000 and its effects, (2) identification of systems,
suppliers of goods and services, and business partners with potential Year 2000
issues relating to the Company's internal operations as well as the creation and
support of its products, (3) assessment of internal systems and products, as
well as inquiries to outside parties to ascertain Year 2000 readiness, (4)
resolution and contingency planning for any items identified as having Year 2000
issues, and (5) post implementation follow-up.
The Company is currently in Phase 4 of its program and anticipates
completion of this phase by the third quarter of 1999. The Company has
established a site on its web page dedicated to Year 2000 Readiness Disclosure.
This site is a culmination of Company product analysis and testing results, and
can be found at http://www.partech.com/.
The Company has undergone a review of its internal systems including those
which support manufacturing, financial, and general business operations. As a
result, the Company has identified some systems which require upgrades to be
Year 2000 ready, including certain business software applications. The business
application upgrades are in progress, and are accommodated by existing software
maintenance contracts with outside providers. The Company anticipates that it
will complete its review of its internal systems and expects that all necessary
upgrades to ensure Year 2000 compliance will be completed by the second quarter
of 1999.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1999
COMPARED WITH
QUARTER ENDED MARCH 31, 1998
The Company's analysis to date of key third parties has not revealed any
issues which would prevent them from continuing to provide products and services
through the Year 2000 transition. Such analysis has included telephone and
written inquiries to third parties. As the assessment continues, the Company
will determine its vulnerability and establish contingency plans where required
and possible. The Company expects any such contingency plans to be developed by
the second quarter of 1999. The Company estimates the remaining cost of
resolving Year 2000 issues will be approximately $850,000. This will be funded
by existing financial resources. The costs to date associated with the Year 2000
effort represent a reallocation of existing Company resources. However failure,
delays or increased costs experienced by the Company could have a material
adverse effect on the Company's results of operations or financial condition.
Additionally the Company cannot guarantee that third parties, upon which the
Company relies, will be able to adequately assess and address their Year 2000
compliance issues in a timely manner, the effects of which may also have an
adverse impact on the Company's results of operations. As a consequence, the
Company can give no assurances that issues related to Year 2000 will not have a
material adverse effect on future results of operations or financial condition.
Other Matters
Inflation had little effect on revenues and related costs during the first
quarter of 1999. Management anticipates that margins will be maintained at
acceptable levels to minimize the effects of inflation, if any.
The Company has total interest bearing short-term debt of approximately
$8.6 million at March 31, 1999. Management believes that increases in short-term
rates could have an adverse effect on the Company's 1999 results.
Management believes that foreign currency fluctuations should not have a
significant impact on gross margins due to the low volume of business affected
by foreign currencies.
Important Factors Regarding Future Results
Information provided by the Company, including information contained in
this report, or by its spokespersons from time to time may contain
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, further 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
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1999
COMPARED WITH
QUARTER ENDED MARCH 31, 1998
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, Year 2000
compliance risks and other risks detailed in the Company's filings with the
Securities and Exchange Commission.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
List of Exhibits
Exhibit No. Description of Instrument
----------- -------------------------
11 Statement re computation of per-share earnings
Reports on Form 8-K
None during the first quarter of 1999.
<PAGE>
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: May 10, 1999
RONALD J. CASCIANO
------------------
Ronald J. Casciano
Vice President, Chief Financial Officer
and Treasurer
Exhibit Index
Exhibit
Number
------
11 - Statement re computation
of per-share earnings
<PAGE>
Exhibit 11
COMPUTATION OF WEIGHTED AVERAGE NUMBER OF
SHARES OF COMMON STOCK
(In Thousands)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
---------------
1999 1998
---- ----
<S> <C> <C>
Diluted Earnings Per Share:
Weighted average shares of
Common Stock outstanding:
Balance outstanding - beginning of period ............. 8,549 8,864
Weighted average shares
issued during the quarter ............................. -- 31
Weighted average shares of
treasury stock acquired ............................... (67) --
Incremental shares of common stock
outstanding giving effect to stock options ............ 125 --
------ ------
Weighted balance - end of period ...................... 8,607 8,895
====== ======
</TABLE>
<PAGE>
Exhibit 11
COMPUTATION OF WEIGHTED AVERAGE NUMBER OF
SHARES OF COMMON STOCK
(In Thousands)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
---------------
1999 1998
---- ----
<S> <C> <C>
Basic Earnings Per Share:
Weighted average shares of
Common Stock outstanding:
Balance outstanding - beginning of period ........... 8,549 8,864
Weighted average shares
issued during the quarter ........................... -- 31
Weighted average shares of
treasury stock acquired ............................. (67) --
------ ------
Weighted balance - end of period .................... 8,482 8,895
====== ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 1,163
<SECURITIES> 0
<RECEIVABLES> 44,655
<ALLOWANCES> 0
<INVENTORY> 32,991
<CURRENT-ASSETS> 83,717
<PP&E> 8,441
<DEPRECIATION> 0
<TOTAL-ASSETS> 96,663
<CURRENT-LIABILITIES> 33,415
<BONDS> 0
0
0
<COMMON> 190
<OTHER-SE> 62,505
<TOTAL-LIABILITY-AND-EQUITY> 96,663
<SALES> 22,045
<TOTAL-REVENUES> 35,746
<CGS> 13,678
<TOTAL-COSTS> 26,500
<OTHER-EXPENSES> 2,213
<LOSS-PROVISION> 0
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<INCOME-PRETAX> 1,226
<INCOME-TAX> 460
<INCOME-CONTINUING> 766
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 766
<EPS-PRIMARY> .09
<EPS-DILUTED> .09
</TABLE>
