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PAR Technology Corporation Announces 2017 Third Quarter Results from Continuing OperationsPAR Technology Corporation (NYSE: PAR) (the "Company") today announced its results of continuing operations for its third quarter ended September 30, 2017. Summary of Fiscal 2017 Third Quarter and Year-to-Date Financial Results from Continuing Operations
A reconciliation and description of non-GAAP financial measures to their comparable GAAP financial measures are included in the tables at the end of this press release. Dr. Donald H. Foley, the Company's President and Chief Executive Officer, commented on the results, "This year continues to be a transformational year as we execute our strategic plan and move to a software driven solutions Company with a business model that yields consistent growth and margin improvement. As we noted during the second quarter conference call, our performance for this year's third quarter would be impacted by the completion of the accelerated hardware deployments and special projects for our tier 1 customers in the first half of this year. At the same time, we continued to grow our Software-as-a-Service business and our recurring revenues, albeit on a smaller base. We continue to implement our Government transition from low-value, pass-through revenues to sustainable, value added revenues." There will be a conference call at 4:30 p.m. (Eastern) on November 13, 2017, during which the Company's management will discuss the financial results for the third quarter of 2017. To participate in the call, please call 844-419-5412, approximately 10 minutes in advance. No passcode is required to participate in the live call or to listen to the replay version. Individual & Institutional Investors will have the opportunity to listen to the conference call/event over the internet by visiting PAR's website at www.partech.com. Alternatively, listeners may access an archived version of the presentation call through November 20, 2017 by dialing 855-859-2056 and using conference ID 6595508. About PAR Technology Corporation. PAR Technology Corporation's stock is traded on the New York Stock Exchange under the symbol "PAR". PAR's Restaurant/Retail segment has been a leading provider of restaurant and retail technology for more than 35 years. PAR offers technology solutions for the full spectrum of restaurant operations, from large chain and independent table service restaurants to international quick service chains. Products from PAR also can be found in retailers, cinemas, cruise lines, stadiums, and food service companies. PAR's Government Business is a leader in providing computer-based system design, engineering and technical services to the Department of Defense and various federal agencies. For more information visit http://www.partech.com or connect with us on Facebook and Twitter. Forward-Looking Statements. This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements appear throughout this press release, including express or implied forward-looking statements relating to our expectations regarding anticipated financial performance, customer and product opportunities, and assumptions as to future events. Forward-looking statements are subject to a variety of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results to differ materially from those contemplated in these statements. Factors that could cause actual results to differ materially, include: delays in new product development and/or product introduction; changes in customer base; because a significant portion of our revenue is derived from two customers, a significant fluctuation in our product or service offerings to one or both of these customers; product and service demands and competition; risks associated with the ongoing investigation into possible violations of the U.S. Foreign Corrupt Practices Act and similar laws, including the cost of such investigation and any sanctions, fines or remedial measures that may be imposed by the U.S. Department of Justice or U.S. Securities and Exchange Commission ("SEC"); expenses related to remedial measure; risks associated with the Company's identified material weaknesses in internal control over financial reporting and any other failure to maintain effective internal controls; and the other risk factors discussed in the Company's most recent Annual Report on Form 10-K and other filings with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
The Company reports its financial results in accordance with GAAP. However, non-GAAP adjusted financial measures, as defined in the reconciliation table above, are provided because management uses these non-GAAP measures in evaluating the results of the continuing operations of the Company and believes this information provides investors supplemental insight into underlying business trends and operating results. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, these non-GAAP measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The Company's results of operations are impacted by certain non-recurring charges, including equity based compensation, acquisition related expenditures, and other non-recurring charges that may not be indicative of the Company's financial performance. Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove non-recurring charges provides a useful perspective with respect to our operating results and provides supplemental information to both management and investors by removing items that are difficult to predict and are often unanticipated. The Company believes the adjustments provide a useful comparison on a year-over-year basis. During the third quarter of 2017, the Company recorded charges within selling, general and administrative of $705,000 related to the Company's previously disclosed investigation of import export and sales documentation activities at the Company's China and Singapore offices and the SEC subpoena, and $63,000 of equity based compensation. In addition, the Company recognized amortization of acquired intangible assets of $241,000 related to the Company's acquisition of Brink. During the third quarter of 2016, the Company recorded charges within selling, general and administrative of $406,000 of investigation costs related to the Company's former chief financial officer's unauthorized transfer of Company Funds, $36,000 related to the implementation of the Company's new ERP system and equity based compensation charges of $190,000 and $789,000 write off relating to the Company's previous human capital management system that is being replaced in connection with the ERP system implementation. Lastly, related to the acquisition of Brink, the Company recognized amortization of acquired intangible assets of $241,000 and accreted interest of $26,000.
During the nine months ended September 30, 2017, the Company recorded charges within selling, general and administrative of $2,272,000 related to the Company's previously disclosed investigation of import export and sales documentation activities at the Company's China and Singapore offices and the SEC subpoena, and $21,000 of legacy charges related to the Company's former chief financial officer's unauthorized transfers of Company fund. In addition, $301,000 of equity based compensation charges were recorded during the nine months ended September 30, 2017. Lastly, the Company recognized amortization of acquired intangible assets of $724,000 related to the Company's acquisition of Brink. During the nine months ended September 30, 2016, the Company recorded charges within selling, general and administrative of $1,476,000 of investigation costs related to the Company's former chief financial officer's unauthorized transfer of Company funds, $508,000 related to the initial phase of the planned implementation of a new enterprise resource system in connection with the ERP system implementation, $789,000 write off relating to the Company's previous human capital management system that is being replaced in connection with the ERP system implementation and equity based compensation charges of $397,000. Lastly, related to the acquisition of Brink, the Company recognized amortization of acquired intangible assets of $724,000 and accreted interest of $78,000.
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