PAR Technology Corporation Announces 2010 Fourth Quarter & Year End Results

NEW HARTFORD, N.Y.--([ BUSINESS WIRE ])--PAR Technology Corporation (NYSE: PAR), 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 fourth quarter and year end 2010 financial results.

For the fourth quarter ended December 31, 2010, PAR reported revenues of $64.4 million an increase of 10.7% when compared to the $58.2 million reported for the fourth quarter of 2009. The Company reported net income of $1.2 million and diluted earnings per share of $0.08 for the period, versus a net loss of $4.9 million and loss per diluted share of $0.33 reported for the same period last year.

For fiscal year 2010, PAR reported total revenues of $239.9 million, an increase of 7.6% when compared to the $223 million reported for fiscal year 2009. Net income for the year was $3.1 million, and $0.21 earnings per diluted share. The results represent a dramatic increase from the net loss of $5.2 million and loss per diluted share of $0.36 for fiscal year 2009.

In 2009, fourth quarter and fiscal year results included one-time charges that reduced operating income by approximately $6.5 million, comprised of $1.2 million related to personnel actions, and $5.3 million related to inventory. In addition the Company recorded a $1.4 million valuation allowance for certain deferred tax assets.

aOur improved fourth quarter sales and earnings were based on the strength of our product and service offerings along with the successful and continued implementation of the McDonalda�s North American rollout. In 2010, as the economy slowly improved, we experienced growth in most sectors of our hospitality business while some particular sectors remained flat to down awaiting still further economic improvement. While our government businessa� growth was temporarily interrupted due to the timing of the contractual cycle, we expect growth to be restored in 2011,a said John W. Sammon, PAR Chairman and Chief Executive Officer. aDuring 2010 we continued to invest in several key initiatives to accelerate our long term sales growth. NextGen investments in software for restaurants and hotels continue to make progress and we expect meaningful results in 2011 and beyond. Our focus continues to be on expanding new business lines through channel growth, international reach and new product offerings.a

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 Companya�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 Companya�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 offerings 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 PARa�s global service 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 PAR. For more information visit the Companya�s website at [ www.partech.com ].



PAR TECHNOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts)

	December 31,
	2010			2009
Assets
Current assets:
Cash and cash equivalents	$	6,781		$	3,907
Accounts receivable-net		43,517			46,107
Inventories-net		38,707			32,867
Income tax refunds		152			438
Deferred income taxes		5,719			6,362
Other current assets		3,067			3,235
Total current assets		97,943			92,916
Property, plant and equipment - net		5,796			6,332
Deferred income taxes		1,079			1,202
Goodwill		26,954			26,635
Intangible assets - net		10,389			7,243
Other assets		2,124			1,775
Total Assets	$	144,285		$	136,103
Liabilities and Shareholdersa� Equity
Current liabilities:
Current portion of long-term debt	$	1,711		$	1,404
Borrowings under lines of credit		a'			2,000
Accounts payable		19,902			12,942
Accrued salaries and benefits		9,055			7,607
Accrued expenses		2,843			3,868
Customer deposits		2,286			1,782
Deferred service revenue		16,260			16,598
Total current liabilities		52,057			46,201
Long-term debt		2,744			4,455
Other long-term liabilities		2,725			2,212
Shareholdersa� Equity:
Preferred stock, $.02 par value,
1,000,000 shares authorized		a'			a'
Common stock, $.02 par value,
29,000,000 shares authorized;
16,746,618 and 16,449,695 shares issued;
15,039,334 and 14,796,940 outstanding		335			329
Capital in excess of par value		42,264			41,382
Retained earnings		50,605			47,482
Accumulated other comprehensive loss		(613	)		(449	)
Treasury stock, at cost, 1,707,284 and 1,652,755 shares		(5,832	)		(5,509	)
Total shareholdersa� equity		86,759			83,235
Total Liabilities and Shareholdersa� Equity	$	144,285		$	136,103



PAR TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)

	For the three months ended						For the year ended
	ended December 31,						December 31,
	2010			2009			2010			2009

Net revenues:
Product	$	29,209		$	19,918		$	101,394		$	72,555
Service		18,563			17,989			71,932			74,046
Contract		16,663			20,300			66,613			76,447
		64,435			58,207			239,939			223,048
Costs of sales:
Product		19,278			14,367			66,534			48,945
Service		12,291			16,661			48,432			56,408
Contract		15,490			19,158			62,344			72,220
		47,059			50,186			177,310			177,573
Gross margin		17,376			8,021			62,629			45,475
Operating expenses:
Selling, general and administrative		11,478			9,386			40,794			36,207
Research and development		4,469			4,069			17,061			14,196
Amortization of identifiable intangible assets		236			233			939			1,337
		16,183			13,688			58,794			51,740

Operating income (loss)		1,193			(5,667	)		3,835			(6,265	)
Other income (loss), net		124			(109	)		640			165
Interest expense		(53	)		(72	)		(352	)		(400	)

Income (loss) before provision for income taxes		1,264			(5,848	)		4,123			(6,500	)
(Provision) benefit for income taxes		(110	)		955			(1,000	)		1,314
Net income (loss)	$	1,154		$	(4,893	)	$	3,123		$	(5,186	)
Earnings (loss) per share
Basic	$	.08		$	(.33	)	$	.21		$	(.36	)
Diluted	$	.08		$	(.33	)	$	.21		$	(.36	)
Weighted average shares outstanding
Basic		14,905			14,666			14,822			14,547
Diluted		15,063			14,666			15,008			14,547

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PAR Technology Corporation Announces 2010 Fourth Quarter & Year End Results