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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 100,000 restaurants in over 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. The vast majority of sales come from customers in the US.

Operations

PAR's restaurant/retail business (over 65% of sales) offers Brink POS, a cloud-based point-of-sale software platform installed in some 9,800 restaurant locations. 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 over a third of sales. It works with the US Department of Defense, and other federal, state, and local government agencies. Its two principal offerings are Intel Solutions and Mission Systems. Intel Solutions provides a variety of geospatial intelligence situational awareness tools for mobile and data centers. Mission Systems 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 almost 95% of its sales in the US. Overseas, PAR has products in more than 100 countries. It has facilities in United Arab Emirates, China, the UK, and Australia. The firm also has locations in New York, California, Florida, and Ontario, Canada. Its 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, amusement parks, cruise lines, and movie theaters through resellers. It also has a dedicated sales force targeting international markets.

The company derived about 35% of its total consolidated revenues from contracts to provide technical expertise to government organizations and prime contractors. In any given year, the majority of its government contracting activity is associated with the US Department of Defense.

Financial Performance

The company's revenue declined by 18% between 2015 and 2019.

The company reported revenues of $187.2 million for the year ended 2019, down 7% from $201.2 million for the year ended 2018. Net loss was $15.6 million in 2019, a 35% improvement compared to the net loss of $24.1 million in 2018.  The company's year-over-year unfavorable performance was primarily driven by lower Restaurant/Retail hardware revenue and corresponding hardware support service revenue from its traditional tier 1 customers as one of these customers completed significant projects in 2018 which were not repeated in 2019.

The company's cash for the year ended 2019 was $28 million. Operating activities used $16.1 million, primarily for accounts receivable, and investing activities used another $23.9 million, mainly for acquisitions. Financing activities generated $65.6 million.

Strategy

Part of its competitive strategy is to enter into new market segments and attract larger customers that operate in different Restaurant/Retail spaces, particularly in the table-service market. 

The company's government contracting business has been focused on niche offerings reflecting its expertise, primarily in the areas of ISR, systems engineering & evaluation, satellite and telecommunications services, and management technology/systems services. 

Mergers and Acquisitions

In late 2019, PAR Technology acquired, through ParTech, Inc., 100% of the limited liability company interests of Restaurant Magic, a leader in back-office subscription software for enterprise restaurants. The acquisition expanded the company's suite of product offerings in the restaurant technology solutions space. The acquisition price for Restaurant Magic consisted of $13.0 million of cash. 

Earlier that year, through the company's wholly-owned subsidiary, ParTech, Inc., it acquired assets of the 3M Company's Drive-Thru Communications Systems business.

Par Technology Corporation

8383 Seneca Tpke Ste 2
New Hartford, NY 13413-4991
Phone: 1 (315) 738-0600

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: PAR
Stock Exchange: , NYSE
CIO: John Darby
President, CEO, and Director: Donald H. Foley
CFO: Bryan Menar
Employees (This Location): 99
Employees (All Locations): 1,000

Major Office Locations

New Hartford, NY

Other Locations

Dixon, CA
El Cajon, CA
San Diego, CA
Boulder, CO
Delray Beach, FL
New Hartford, NY
Chesapeake, VA