PAR Technology Corporation (PAR) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.52 million, or $ 0.03 a share in the quarter, against a net loss of $1.49 million, or $0.10 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $1.58 million, or $0.10 a share compared with a net loss of $1.06 million, or $0.70 a share in the last year period. Revenue during the quarter grew 5.91 percent to $61.49 million from $58.06 million in the previous year period. Gross margin for the quarter expanded 30 basis points over the previous year period to 20.49 percent. Total expenses were 98.66 percent of quarterly revenues, up from 96.69 percent for the same period last year. That has resulted in a contraction of 197 basis points in operating margin to 1.34 percent.
Operating income for the quarter was $0.82 million, compared with $1.92 million in the previous year period.
However, the adjusted operating income for the quarter was stable at $2.48 million when compared with the prior year period. At the same time, adjusted operating margin contracted 24 basis points in the quarter to 4.04 percent from 4.28 percent in the last year period.
“Our performance in the quarter was a result of strength across both of PAR’s segments evidenced by revenue growth of 5.9% over the third quarter in 2015 and a 17.0% increase sequentially from the previous quarter. We are seeing increased demand from our Restaurant/Retail Tier 1 customers, and also had increased deployments of our Brink cloud platform-as-a-service solution in the recently ended quarter,” commented Karen E. Sammon, PAR Technology Corporation President and Chief Executive Officer. “The success of PAR’s cloud solutions have favorably impacted our business as reflected by a 75% rise in our SaaS revenues from the third quarter last year. I am also pleased to report that our Government segment had a strong quarter as revenues increased by 4.9% over the prior year third quarter as we continue to add new contract awards and extensions and our backlog in this segment at the end of the quarter is a very healthy $122.4 million.”
Working capital increases
PAR Technology Corporation has recorded an increase in the working capital over the last year. It stood at $35.07 million as at Sep. 30, 2016, up 5.36 percent or $1.79 million from $33.28 million on Sep. 30, 2015. Current ratio was at 1.75 as on Sep. 30, 2016, up from 1.65 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 68 days for the last year period. Days sales outstanding were almost stable at 50 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 28 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding was almost stable at 33 days for the quarter, when compared with the previous year period.
Debt comes down
PAR Technology Corporation has recorded a decline in total debt over the last one year. It stood at $5.39 million as on Sep. 30, 2016, down 11.98 percent or $0.73 million from $6.12 million on Sep. 30, 2015. Total debt was 4.31 percent of total assets as on Sep. 30, 2016, compared with 4.78 percent on Sep. 30, 2015. Debt to equity ratio was at 0.08 as on Sep. 30, 2016, down from 0.09 as on Sep. 30, 2015. Interest coverage ratio improved to 68.42 for the quarter from 23.70 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
