PAR revenues, net earnings both up for first quarter
NEW HARTFORD — PAR Technology Corp. said revenues and net earnings from continuing operations were both up in the first quarter this year compared to the same period in 2011, and there’s room for future growth.
The company reported revenues of $55.6 million and net earnings of $1 million, or seven cents per share, compared with the prior year’s results of $54.2 million in revenues and net earnings of $741,000, or five cents a share, during the same period a year ago.
"We are pleased with our financial performance in the first quarter. With the successful divestiture of the LMS business, we are now focused on our two core businesses," said Chairman and Chief Executive Officer Paul B. Domorski. "While our first quarter consolidated performance was in line with our expectations, it does not reflect what we believe the organization is capable of generating."
He added, "Our intent is to transition our businesses over time to a recurring revenue model, largely based on software-as-a-service and high value-add service contracts, in no small part enabled by our superior hardware. We are beginning to see encouraging results."
Describing the company’s hospitality segment, Domorski said: "Quarterly revenue in Hospitality declined 4.8 percent year over year and 11.2 percent sequentially, however, despite the completion last year of our largest customer rollout in our history, we maintained profitability in the segment for the first quarter."
On the government business side, the company "showed steady profitability for the first quarter year over year," said Domorski. Quarterly revenues rose 19.2 percent year over year.
But it was essentially unchanged over the fourth quarter, reflecting the impact of a large Army contract awarded early in the fourth quarter of 2011.