NEW HARTFORD — PAR Technology Corp (NYSE: PAR) reported that its net earnings from continuing operations rose to $1 million, or 7 cents a share, in the first quarter from $741,000, or 5 cents per share, in the year-ago quarter.
Net revenue edged up to $55.6 million from $54.2 million.
The New Hartford–based technology company’s leader says PAR can, and will, do much better going forward.
“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,” PAR Chairman, President, and CEO Paul B. Domorski said in a news release. “Our intent is to transition our business 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.”
PAR reported its earnings before the opening of trading April 26. Its shares rose more than 2 percent in the first hour after trading commenced. Year to date, PAR’s stock price was up more than 25 percent.
Including income or losses from discontinued operations, PAR reported net income of $2.5 million, or 16 cents a share, in the first quarter, up from $404,000, or 3 cents per share, in the first quarter of 2011.
The company’s divesture of its Logistics Management Systems to ORBCOMM Inc. in January started its streamlining process, leaving PAR focused on its two core businesses, Domorski said.
One of those core businesses, PAR’s hospitality segment, reported a revenue decline of 4.8 percent during the quarter, but saw some highlights as the company rolled out its new cloud-based EverServ SureCheck temperature-monitoring product with Walmart in February.
PAR also launched cloud-based ATRIO, a property-management application for hotels, at Personality Hotels’ Hotel Diva in San Francisco.
“While still early in its rollout, ATRIO’s initial market traction has exceeded our expectations,” Domorski said.
PAR’s hospitality segment offers technology applications for restaurants from large chains to independent table-service restaurants and fast-food restaurants. PAR also markets products targeted at food-safety applications, hotel-management software systems, and management systems that can be found in retailers, cinemas, cruise lines, stadiums, and food-service companies.
Revenue for PAR’s government segment rose 19.2 percent in the first quarter, continuing to benefit from a large U.S. Army contract the company landed in the fourth quarter of 2011.
“A highlight during the quarter was our announcement that the world leader in geographic information system software has chosen our GV Video Framework to support the introduction of full-motion video capabilities into that company’s latest product release,” Domorski said. “We see this as confirmation of our effort to create recurring revenue streams from our significant technical expertise in highly sophisticated areas such as geospatial technology.”
PAR’s government segment is comprised of PAR Government Systems Corp., which develops and delivers geospatial and full-motion video applications to industry and federal and state governments. Rome Research Corp. provides communications and information-technology support services to the U.S. Department of Defense.