About Par Technology Corporation

PAR Technology is POS for fast food giants such as McDonald's and Yum! Brands. The company makes point-of-sale (POS) systems that are used to input and display orders by more than 75,000 restaurants in some 110 countries. Through its PAR Government Systems unit, the company designs data processing systems and develops software for advanced radar and other detection systems used by the US Department of Defense (DOD) and other federal and state agencies. Most sales come from customers in the US.

Operations

PAR's restaurant/retail business (about 75% of sales) offers Brink POS, a cloud-based point-of-sale software platform installed in some 5,200 restaurant locations, and SureCheck, a food safety and workforce efficiency technology for big box retailers, food retailers, and contract food organizations. It also offers products to the restaurant and retail industry consisting of restaurant-grocery stores and specialty retail outlets. 

PAR's government business accounts for about 25% of sales. It works with the US Department of Defense, and other federal, state, and local government agencies. It's two principal offerings are Solutions and Services and Mission Support. Solutions and Services provides a variety of geospatial intelligence situational awareness tools for mobile and data centers. Mission Support provides technical and support services to sustain critical components of Department of Defense Information Network.

Geographic Reach

Hartford, New York-based PAR Technology rings up more than 90% of its sales in the US. Overseas, PAR has products in more than 100 countries. It has facilities in United Arab Emirates, Singapore, the UK, and Australia. The firm's government business has facilities in Rome, New York.

Sales and Marketing

PAR markets and sells products through dedicated sales teams. The company markets to independent restaurants and non-food service clients such as convenience stores and movie theaters through resellers. It also has a dedicated sales force targeting international markets.

The US Department of Defense is PAR's largest customer, accounting for more than 25% of sales. Sales to McDonald's and YUM! Brands together account for more than half of PAR's restaurant/retail segment revenue. Other customers include Walmart, Wegmans and Whole Foods.

Financial Performance

PAR Technology's revenue has fluctuated in the past five years, but it ticked slightly higher in 2016 and 2017. In 2017, revenue inched up 1% to about $233 million from 2016 from a 15% increase in restaurant/retail sales, offset by a 24% decreased in government sales.

Broken down by products and services, product sales rose about 15% in 2017, driven by higher revenues from tier 1 customers in the first half of the year. Service revenue increased 15% with higher recurring revenue from software-as-a-service contracts and installation services related to product sales.

Increases in selling, general, and administrative costs and research and development expenses pushed the bottom line to a negative $3.4 million in 2017 after a $1.8 million profit in 2016.

Cash holdings were about $9 million at the end of 2017 compared to $8 million the year before.

Strategy

PAR Technology has moved into subscription-based offerings with the Brink POS. The cloud-based point-of-sale platform eliminates the need for an in-store back-office servers and simplifies software version control and organizational updates. The company continues adding features to Brink and the SureCheck systems, and it is expanding direct sales force and third-party channel partners.

PAR also invests in its government segment to realize renewals of expiring contracts and extensions of existing contracts, and secure service contracts in expanded areas within the DoD and other federal agencies.

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Par Technology Corporation

8383 Seneca Turnpike
New Hartford, NY 13413-4991
Phone: 1 (315) 738-0600
Fax: 1 (315) 738-0411

Stats

  • Employer Type: Public
  • Stock Symbol: PAR
  • Stock Exchange: NYSE
  • President, CEO, and Director: Donald H. Foley
  • President, CEO, and Director: Donald H. Foley
  • CFO: Bryan Menar
  • 2017 Employees: 1,137

Major Office Locations

  • New Hartford, NY

Other Locations

  • Dixon, CA
  • El Cajon, CA
  • San Diego, CA
  • Boulder, CO
  • Delray Beach, FL
  • Chesapeake, VA
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