PAR Technology is par for the course 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 50,000 restaurants in some 110 countries. It also offers other software and hardware for restaurants, as well as hotels, resorts, spas, retailers, entertainment venues, and cruise ships. In addition, through subsidiaries PAR Government Systems and Rome Research, PAR Technology 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.
New York-based PAR Technology rings up about 85% of its sales in the US. Overseas, PAR serves customers in China, Europe, Latin America, the Middle East, and the Asia-Pacific region. The firm's government business has facilities in Rome, New York.
PAR's hospitality business (representing about 65% of sales) operates through two primary subsidiaries: ParTech, Inc, a provider of hospitality management technology systems to quick serve, fast casual, and table service restaurants; and PAR Springer-Miller Systems (PSMS), which caters to hotels, resorts, spas, and casinos worldwide. PAR's government business accounts for about 35% of sales and caters to the US Department of Defense, and other federal, state, and local government agencies. PAR Government Systems Corp. is engaged in the development of advanced signal and image processing and management systems with a focus on geospatial intelligence, geographic information systems, and command and control applications. Additionally, the company's Rome Research Corp. subsidiary provides information technology, communications, and related services to the Department of Defense, providing comprehensive operational support worldwide.
Sales and Marketing
PAR uses a direct sales force to sell to restaurant chains and their franchisees, as well as the hotel and resort market. 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 36% of its 2012 sales. Sales to McDonald's and YUM! Brands together account for more than a third of PAR's hospitality segment revenue.
PAR's overall sales increased 7% in 2012 compared with 2011, to $245.2 million. The rise in sales was driven by a 28% jump in contracts revenue for the firm's new Intelligence, Surveillance, and Reconnaissance (ISR) systems integration contract with the US Army. Revenue from products and services both declined. PAR posted a net loss from continuing operations of $1.8 million in 2012 compared to a net loss of $13.4 million in 2011. PAR's sales and profit growth has been uneven in recent years, with gains one year and losses the next.
The company's strategy includes capitalizing on the growth of the restaurant industry in the Asia-Pacific region and developing products for the hotel and spa sector of the hospitality industry. To focus on its core hospitality and government operations, PAR sold its logistics management subsidiary (PAR Logistics Management Systems) in January 2012 to ORBCOMM for about $6 million.
The company's founder, director, and chairman emeritus, John W. Sammon, owns about a third of PAR Technology.