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 September 30, 2001. 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 October 31, 2001 - 7,723,005 shares.
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 and Nine Months Ended September 30, 2001 and 2000 - Consolidated Statement of Comprehensive Income for the Three and Nine Months Ended September 30, 2001 and 2000 - Consolidated Balance Sheet at September 30, 2001 and December 31, 2000 - Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2001 and 2000 - 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
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 For the nine months ended September 30, ended September 30, -------------------- -------------------- 2001 2000 2001 2000 ---- ---- ---- ---- <S> <C> <C> <C> <C> Net revenues: Product ........................... $ 11,988 $ 13,750 $ 37,246 $ 30,681 Service ........................... 8,522 8,808 25,071 23,360 Contract .......................... 7,681 6,400 22,535 18,482 -------- -------- -------- -------- 28,191 28,958 84,852 72,523 -------- -------- -------- -------- Costs of sales: Product ........................... 8,234 10,336 24,882 23,892 Service ........................... 7,070 6,564 20,011 20,668 Contract .......................... 7,255 5,949 21,247 17,262 -------- -------- -------- -------- 22,559 22,849 66,140 61,822 -------- -------- -------- -------- Gross margin ................ 5,632 6,109 18,712 10,701 -------- -------- -------- -------- Operating expenses: Selling, general and administrative 3,956 5,224 12,503 17,294 Research and development .......... 1,554 2,630 5,513 7,155 Nonrecurring charge ............... -- 300 -- 24,749 -------- -------- -------- -------- Income (loss) from operations .......... 122 (2,045) 696 (14,048) -------- -------- -------- -------- Other income, net ...................... 210 135 760 232 Interest expense ....................... (214) (302) (894) (657) -------- -------- -------- -------- Income (loss) before provision for income taxes ...................... 118 (2,212) 562 (14,473) Provision (benefit) for income taxes ... 38 (1,033) 206 (5,519) -------- -------- -------- -------- Net income (loss) ...................... $ 80 $ (1,179) $ 356 $ (8,954) ======== ======== ======== ======== Basic and Diluted earnings (loss) per common share .................. $ .01 $ (.15) $ .05 $ (1.13) ======== ======== ======== ======== Weighted average shares outstanding Diluted ........................... 7,846 7,775 7,789 7,891 ======== ======== ======== ======== Basic ............................. 7,723 7,775 7,723 7,891 ======== ======== ======== ======== </TABLE> PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (In Thousands) (Unaudited) <TABLE> <CAPTION> For the three months For the nine months ended September 30, ended September 30, ------------------- ------------------- 2001 2000 2001 2000 ---- ---- ---- ---- <S> <C> <C> <C> <C> Net income (loss) ........................... $ 80 $(1,179) $ 356 $(8,954) Other comprehensive loss, net of tax: Foreign currency translation adjustments 72 (198) (296) (672) ------- ------- ------- ------- Comprehensive income (loss) ................. $ 152 $(1,377) $ 60 $(9,626) ======= ======= ======= ======= </TABLE>
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (In Thousands Except Share Amounts) September 30, 2001 December 31, (Unaudited) 2000 Assets ----------- ---- Current Assets: Cash .................................... $ 1,362 $ 1,199 Accounts receivable-net ................. 30,429 30,400 Inventories ............................. 23,998 26,776 Income tax refund claims ................ -- 656 Deferred income taxes ................... 4,209 4,255 Other current assets .................... 2,985 1,868 -------- -------- Total current assets ................ 62,983 65,154 Property, plant and equipment - net .......... 9,041 10,098 Deferred income taxes ........................ 6,230 6,321 Other assets ................................. 3,519 3,963 -------- -------- $ 81,773 $ 85,536 -------- -------- Liabilities and Shareholders' Equity Current Liabilities: Notes payable ........................... $ 12,514 $ 13,856 Accounts payable ........................ 7,130 8,800 Accrued salaries and benefits ........... 3,922 4,208 Accrued expenses ........................ 1,217 2,088 Income taxes payable .................... 521 600 Deferred service revenue ................ 7,295 6,829 -------- -------- Total current liabilities ........... 32,599 36,381 -------- -------- Long-term debt ............................... 2,282 2,323 -------- -------- Shareholders' Equity: Common stock, $.02 par value, 19,000,000 shares authorized; 9,516,711 shares issued 7,723,005 outstanding ................. 190 190 Preferred stock, $.02 par value, 1,000,000 shares authorized ........... -- -- Capital in excess of par value .......... 28,071 28,071 Retained earnings ....................... 29,099 28,743 Accumulated comprehensive loss .......... (1,499) (1,203) Treasury stock, at cost, 1,793,706 shares (8,969) (8,969) -------- -------- Total shareholders' equity .......... 46,892 46,832 -------- -------- $ 81,773 $ 85,536 ======== ========
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (In Thousands) (Unaudited) For the nine months ended September 30, ------------------- 2001 2000 ---- ---- Cash flows from operating activities: Net income (loss) .................................... $ 356 $(8,954) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ...................... 2,521 2,605 Provision for obsolete inventory ................... 838 2,751 Deferred income taxes .............................. 137 (5,143) Translation adjustments ............................ (296) (672) Increase (decrease)from changes in: Accounts receivable-net .......................... (29) 6,394 Inventories ...................................... 1,940 (3,154) Income tax refund claims ......................... 656 133 Other current assets ............................. (1,117) (755) Accounts payable ................................. (1,670) (1,423) Accrued salaries and benefits .................... (286) (777) Accrued expenses ................................. (871) (268) Deferred service revenue ......................... 466 1,435 Income taxes payable ............................. (79) 229 ------- ------- Net cash provided (used) by operating activities 2,566 (7,599) ------- ------- Cash flows from investing activities: Capital expenditures ............................... (430) (798) Capitalization of software costs ................... (590) (770) ------- ------- Net cash used in investing activities ........... (1,020) (1,568) ------- ------- Cash flows from financing activities: Net borrowing (payments) under line-of-credit agreements ...................... (1,342) 7,808 Net proceeds (payments) from the issuance of long-term debt ............................... (41) 2,385 Acquisition of treasury stock ...................... - (1,424) ------- ------- Net cash provided (used) in financing activities (1,383) 8,769 ------- ------- Net increase (decrease) in cash and cash equivalents 163 (398) Cash and cash equivalents at beginning of year ...... 1,199 953 ------- ------- Cash and cash equivalents at end of period .......... $ 1,362 $ 555 ======= ======= Supplemental disclosures of cash flow information: Cash paid during the year for: Interest ........................................... $ 833 $ 603 Income taxes, net of refunds ....................... (488) (643)
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The statements for the three and nine months ended September 30, 2001 and 2000 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, 2001 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 and nine months ended September 30, 2001 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2001. 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, 2000 and 1999 included in the Company's December 31, 2000 Annual Report to the Securities and Exchange Commission on Form 10-K. 2. Inventories are used in the manufacture and service of Transaction Processing products. The components of inventory, net of related reserves, consist of the following: (In Thousands) September 30, December 31, 2001 2000 ------------ ----------- Finished goods $ 6,015 $ 6,425 Work in process 1,870 2,956 Component parts 4,008 5,612 Service parts 12,105 11,783 -------- -------- $ 23,998 $ 26,776 ======== ======== At September 30, 2001 and December 31, 2000, the Company had recorded reserves for obsolete inventory of $5,196,000 and $4,171,000, respectively.
PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 3. In June 2001, the Financial Accounting Standards Board approved Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" which is effective January 1, 2002. Under SFAS 142, amortization of goodwill, including goodwill recorded in past business combinations, will discontinue upon adoption of this standard. All goodwill and intangible assets will be tested for impairment in accordance with the provisions of the Statement. It is anticipated that this Statement will not have a material effect on the financial condition of the Company. 4. The Company's reportable segments are strategic business units that have separate management teams and infrastructures that offer different products and services. In 2001, the Company has three reportable segments, Restaurant, Industrial and Government. In previous years, the Restaurant and Industrial segments were combined in the Transaction Processing segment. The Restaurant segment offers integrated solutions to the restaurant industry. These offerings include industry leading hardware and software applications utilized at the point-of-sale, back of store and corporate office. This segment also offers customer support including field service, installation, twenty-four hour telephone support and depot repair. The Industrial segment, for Fortune 500 industrial companies, designs and implements complex integrated transaction processing solutions incorporating its data collection and management software that provide real-time connectivity with multiple host computers, diverse legacy applications, "best-of-breed" software and data input hardware technologies. 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. In 2000, the Company had an additional segment, which was its Vision business. The Vision segment was involved in the manufacture and sale of image processing systems for the food-processing industry. This segment was disposed of in 2000. Intersegment sales and transfers are not material.
Information as to the Company's operations in its segments is set forth below (in thousands): For the three months For the nine months ended September 30, ended September 30, -------------------- ------------------- 2001 2000 2001 2000 ---- ---- ---- ---- Revenues: Restaurant .............. $ 19,893 $ 21,660 $ 60,315 $ 51,019 Industrial .............. 617 620 1,982 2,431 Government .............. 7,681 6,400 22,535 18,482 Vision .................. -- 278 20 591 -------- -------- -------- -------- Total ............. $ 28,191 $ 28,958 $ 84,852 $ 72,523 ======== ======== ======== ======== Income (loss) from operations: Restaurant .............. $ 492 $ (1,810) $ 1,308 $(12,961) Industrial .............. (738) (644) (1,717) (1,557) Government .............. 410 701 1,161 1,193 Vision .................. (42) 8 (56) (423) Nonrecurring charge ..... -- (300) -- (300) -------- -------- -------- -------- 122 (2,045) 696 (14,048) Other income, net ............ 210 135 760 232 Interest expense ............. (214) (302) (894) (657) -------- -------- -------- -------- Income (loss) before provision for income taxes ........ $ 118 $ (2,212) $ 562 $(14,473) ======== ======== ======== ======== Depreciation and amortization: Restaurant .............. $ 625 $ 671 $ 1,773 $ 2,060 Industrial .............. 84 9 251 22 Government .............. 26 27 76 87 Vision .................. -- 8 -- 25 Corporate ............... 162 124 421 411 -------- -------- -------- -------- Total ............. $ 897 $ 839 $ 2,521 $ 2,605 ======== ======== ======== ======== Capital expenditures: Restaurant .............. $ 57 $ -- $ 235 $ 105 Industrial .............. 25 7 41 20 Government .............. 41 -- 83 61 Vision .................. -- 2 -- 12 Corporate ............... 7 396 71 600 -------- -------- -------- -------- Total ............. $ 130 $ 405 $ 430 $ 798 ======== ======== ======== ======== September 30, December 31, 2001 2000 ------------ ----------- Identifiable assets: Restaurant $ 66,907 $ 71,994 Industrial 2,498 2,322 Government 6,298 5,200 Vision - 468 Corporate 6,070 5,552 -------- -------- Total $ 81,773 $ 85,536 ======== ========
The following table presents revenues by geographic area based on the location of the use of the product or services. For the three months For the nine months ended September 30, ended September 30, -------------------- -------------------- 2001 2000 2001 2000 ---- ---- ---- ---- United States ......... $24,733 $23,740 $73,189 $60,093 Other Countries ....... 3,458 5,218 11,663 12,430 ------- ------- ------- ------- Total ........... $28,191 $28,958 $84,852 $72,523 ======= ======= ======= ======= The following table presents property by geographic area based on the location of the asset. September 30, December 31, 2001 2000 ------------ ----------- United States .............. $73,273 $76,803 Other Countries ............ 8,500 8,733 ------- ------- Total ................ $81,773 $85,536 ======= ======= Customers comprising 10% or more of the Company's total revenues are summarized as follows: For the three months For the nine months ended September 30, ended September 30, -------------------- ------------------- 2001 2000 2001 2000 ---- ---- ---- ---- Restaurant Segment: McDonald's Corporation .......... 30% 32% 30% 30% Tricon Corporation .............. 17% 21% 22% 21% Government Segment: Department of Defense ........... 27% 22% 27% 25% All Others ........................... 26% 25% 21% 24% --- --- --- --- 100% 100% 100% 100% === === === ===
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS QUARTER ENDED SEPTEMBER 30, 2001 COMPARED WITH QUARTER ENDED SEPTEMBER 30, 2000 The Company reported revenues of $28.2 million for the third quarter ended 2001, a decline of 3% from the $29 million reported in 2000. The Company recorded net income of $80,000 or diluted earnings per share of $.01 for 2001. This compares to a net loss of $1.2 million or diluted loss per share of $.15 for 2000. Product revenues were $12 million in 2001, a decrease of 13% from the $13.8 million recorded in 2000. This decrease was due to lower Restaurant System sales caused by delayed orders as customers awaited the release of the Company's new POS4XP(TM) system. This product is now released and the Company anticipates restored product revenue growth in the fourth quarter. Product revenue in the third quarter of 2001 includes two new major accounts. The Company was selected by Boston Market to supply systems to all of their 650 stores. Second, the Company was selected by Carnival Cruise Lines to be the exclusive supplier of POS systems to all of their fleet. Customer service revenues were $8.5 million in 2001, a decrease of 3% from the $8.8 million in 2000. This decline was primarily the result of fewer installations directly related to the lower product sales 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 $7.7 million in 2001, an increase of 20% when compared to the $6.4 million recorded in the same period in 2000. This increase is due primarily to Naval contracts to operate and maintain communications in support of Fleet Operations. The Company has become a recognized leader in the conversion of military communications facilities to contractor operations. The U.S. Government is continuing to emphasize the outsourcing of military facility operations, and management anticipates further growth in this segment of our government business. The increase is also attributable to a floodplain-mapping contract with the New York State Department of Environmental Conservation.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS QUARTER ENDED SEPTEMBER 30, 2001 COMPARED WITH QUARTER ENDED SEPTEMBER 3O, 2000 Product margins were 31% for 2001 compared to 25% for the same period in 2000. This improvement is attributable to increased iN.fusion Software content in product sales reflecting the Company's progress in implementing its software strategy. Customer service margins were 17% in 2001 compared to 25% for the same period in 2000. This decrease was the result of certain inefficiencies related to installation scheduling due to lower than planned activity. Additionally, the third quarter of 2000 benefited from a physical inventory adjustment. Contract margins were 6% in 2001 compared to 7% for the same period in 2000. This is attributable to a small change in contract mix. Margins on the Company's government contract business typically run between 5% and 6%. Selling, general and administrative expenses were $4 million in 2001 versus $5.2 million for the same period in 2000, a decrease of 24%. This decline was the result of cost reductions made by the Company over the past year. Research and development expenses were $1.6 million in 2001, a decrease of 41% from the $2.6 million recorded for the same period in 2000. This decrease is due to the successful completion of the new POS4XP system. The Company expects to increase research and development slightly over the next few quarters as it undertakes new projects. 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 and from long-term debt. The reduction in interest expense is primarily due to lower interest rates during 2001 as compared to 2000.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2000 The Company reported revenues of $84.9 million for the nine months ended September 30, 2001, an increase of 17% from the $72.5 million reported in 2000. The Company recorded net income of $356,000 or diluted earnings per share of $.05 for 2001. This compares to a net loss of $9 million or diluted loss per share of $1.13 for 2000. Product revenues were $37.2 million in 2001, an increase of 21% from the $30.7 million recorded in 2000. This increase is due to dramatically improved sales in the Company's Restaurant business. Sales increased to McDonald's and Tricon. Additionally, the Company added several new accounts including Boston Market and Carnival Cruise Lines. Customer service revenues were $25.1 million in 2001, an increase of 7% from the $23.4 million in 2000. This increase was the result of higher installation revenue, which is related to product volume, and field service revenue as a result of new contracts and certain price increases. Contract revenues were $22.5 million in 2001, an increase of 22% when compared to the $18.5 million recorded in the same period in 2000. This increase is due primarily to the Naval communication contracts and the floodplain mapping work discussed earlier. Product margins were 33% for 2001 compared to 22% for the same period in 2000. This improvement is attributable to greater absorption of fixed manufacturing costs on higher product volume and to a more favorable product mix including a higher software content. Customer service margins were 20% in 2001 compared to 12% for the same period in 2000. This margin improvement was the result of improved efficiencies and certain price increases. Contract margins were 6% in 2001 versus 7% for the same period in 2000. This is in line with historical margins of 5 to 6 %. Selling, general and administrative expenses were $12.5 million in 2001 versus $17.3 million for the same period in 2000, a decrease of 28%. This decline was the result of recent cost reductions made by the Company. Additionally, the first six months of 2000 included a charge relating to a one-time early retirement program offered to eligible employees.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2000 Research and development expenses were $5.5 million in 2001, a decrease of 23% from the $7.2 million recorded for the same period in 2000. This decline is due to the completion of the new POS4XP system and to certain other expense reductions. The Company is continuing its investment in restaurant products, including its iN.fusion software suite and in its manufacturing/warehouse business. 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 and from long-term debt. The average amount of outstanding borrowings was higher during 2001 than in 2000. Liquidity and Capital Resources The Company's primary source of liquidity has been from operations and lines of credit with various banks. For the nine months ended September 30, 2001, the Company generated cash flow from operating activities of $2.6 million compared to cash used by operating activities of $7.6 million in 2000. A reduction in inventory and cost cutting measures taken by the Company in the fourth quarter of 2000 contributed to the positive cash flow in 2001. This was partially offset by the timing of vendor payments. In 2000, cash flow was adversely affected by a large operating loss, an increase of inventory, and in the timing of vendor payments. Cash used in investing activities was $1 million in 2001 versus $1.6 million in 2000. In 2001 capital expenditures were primarily for manufacturing equipment and for improvements to the Company's customer service facility in Boulder, Colorado and the Company capitalized $590,000 of software costs. In 2000, capital expenditures were primarily for renovations to the Company's corporate facilities and capitalized software costs amounted to $770,000.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2000 Cash used by financing activities was $1.4 million in 2001 compared to cash provided of $8.8 million in 2000. In 2001, the Company reduced its line-of-credit borrowings by $1.3 million. In 2000, the Company increased its line-of-credit borrowings by $7.8 million and secured a mortgage on a portion of its headquarter facilities. This was partially offset by the repurchase of 336,800 shares of its stock for $1.4 million. The Company currently has line-of-credit agreements, which aggregate $20 million with certain banks. At September 30, 2001, $12.5 million was outstanding under these agreements. The Company believes that it has adequate financial resources to meet its future liquidity and capital requirements in 2001. Other Matters Inflation had little effect on revenues and related costs during the first nine months of 2001. 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 $12.5 million at September 30, 2001. Management believes that increases in short-term rates could have an adverse effect on the Company's 2001 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. In June 2001, the Financial Accounting Standards Board approved Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" which is effective January 1, 2002. Under SFAS 142, amortization of goodwill, including goodwill recorded in past business combinations, will discontinue upon adoption of this standard. All goodwill and intangible assets will be tested for impairment in accordance with the provisions of the Statement. It is anticipated that this Statement will not have a material effect on the financial condition of the Company.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2000 Important Factors Regarding Future Results Information provided by the Company, including information contained in this report or by its spokespersons from time to time might 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 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.
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 third quarter of 2001.
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: November 13, 2001 /s/RONALD J. CASCIANO --------------------------------------- Ronald J. Casciano Vice President, Chief Financial Officer and Treasurer
Exhibit Index Exhibit ------- 11 - Statement re computation of per-share earnings
Exhibit 11 COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK (In Thousands) For the three months ended September 30, -------------------- 2001 2000 ---- ---- Diluted Earnings Per Share: Weighted average shares of Common stock outstanding: Balance outstanding - beginning of period ........ 7,723 7,805 Weighted average shares of treasury stock acquired .......................... - (30) Incremental shares of common stock outstanding giving effect to stock options ....... 123 - ------ ------ Weighted balance - end of period ................. 7,846 7,775 ====== ====== For the three months ended September 30, -------------------- 2001 2000 ---- ---- Basic Earnings Per Share: Weighted average shares of Common stock outstanding: Balance outstanding - beginning of period ........ 7,723 7,805 Weighted average shares of treasury stock acquired .......................... - (30) ------ ------ Weighted balance - end of period ................. 7,723 7,775 ====== ======
Exhibit 11 COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK (In Thousands) For the nine months ended September 30, ------------------- 2001 2000 ---- ---- Diluted Earnings Per Share: Weighted average shares of Common stock outstanding: Balance outstanding - beginning of period ........ 7,723 8,060 Weighted average shares of treasury stock acquired .......................... - (169) Incremental shares of common stock outstanding giving effect to stock options ....... 66 - ------ ------ Weighted balance - end of period ................. 7,789 7,891 ====== ====== For the nine months ended September 30, ------------------- 2001 2000 ---- ---- Basic Earnings Per Share: Weighted average shares of Common stock outstanding: Balance outstanding - beginning of period ........ 7,723 8,060 Weighted average shares of treasury stock acquired .......................... - (169) ------ ------ Weighted balance - end of period ................. 7,723 7,891 ====== ======