PAR Technology Corporation (PAR) has reported a 9,546.67 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $1.45 million in the quarter, compared with $0.02 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.34 million, or $0.15 a share compared with $0.92 million or $0.06 a share, a year ago.
Revenue during the quarter grew 19.09 percent to $65.86 million from $55.30 million in the previous year period. Gross margin for the quarter expanded 459 basis points over the previous year period to 23.78 percent. Total expenses were 96.60 percent of quarterly revenues, down from 99.88 percent for the same period last year. This has led to an improvement of 329 basis points in operating margin to 3.40 percent.
Operating income for the quarter was $2.24 million, compared with $0.06 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3.67 million compared to $1.48 million in the prior year period. At the same time, adjusted operating margin improved 289 basis points in the quarter to 5.57 percent from 2.68 percent in the last year period.
"I am very pleased with the financial results for our first quarter as our Restaurant/Retail segment revenues grew more than 52% from the prior year's first quarter. The strong first quarter performance was driven by significantly higher demand for our restaurant hardware products and continued deployments of our Brink POS software. Offsetting the Restaurant/Retail growth was the decline in our Government segment revenues as they continue to be impacted by the transition from lower margin Program Management Office (PMO) contracts to more higher margin, value-add contracts in Intelligence, Surveillance & Reconnaissance (ISR)," commented Dr. Donald H. Foley, President & chief executive officer of PAR Technology Corporation. "We are off to a strong start to the year, as we were able to leverage the accelerated hardware technology deployment of a strategic customer in Q1. We expect to sustain our momentum for the remainder of the year but at a more moderate pace."
Working capital declines
PAR Technology Corporation has witnessed a decline in the working capital over the last year. It stood at $26.87 million as at Mar. 31, 2017, down 13.99 percent or $4.37 million from $31.24 million on Mar. 31, 2016. Current ratio was at 1.58 as on Mar. 31, 2017, down from 1.76 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 69 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 45 days for the previous year period. At the same time, days payable outstanding went down to 26 days for the quarter from 27 for the same period last year.
Debt comes down significantly
PAR Technology Corporation has recorded a decline in total debt over the last one year. It stood at $1.52 million as on Mar. 31, 2017, down 42.66 percent or $1.13 million from $2.65 million on Mar. 31, 2016. Total debt was 1.21 percent of total assets as on Mar. 31, 2017, compared with 2.23 percent on Mar. 31, 2016. Debt to equity ratio was at 0.02 as on Mar. 31, 2017, down from 0.04 as on Mar. 31, 2016. Interest coverage ratio improved to 70.03 for the quarter from 2.21 for the same period last year.
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