PAR Technology (NYSE:PAR) shares gained significant momentum in the first three-quarters of fiscal 2017; leading the stock price to hit the highest level of $11 at the end of third quarter.
However, lower than predicted results for Q3 impacted traders sentiments. Thus, the stock price plunged to $7 and traded in the narrow range of $8 a share in the past two months.
Source Image: finviz.com
PAR stock again sets a positive trend; thanks to several big contract wins in the last two months. It recently won a $4.5 million contract for research and development from the U.S. Air Force. Its subsidiary was also awarded an $11.9M subcontract from Croop-LaFrance, Inc.
Its subsidiary, ParTech announced that Hot Head Burrito’s (HHB) had deployed PAR’s cloud-based Brink POS® Software in all 72 locations.
Dr. Donald H. Foley, the Company’s President and Chief Executive Officer said, “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. “
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The company has been working on the strategy of expanding its Software-as-a-Service business along with recurring revenues. Moreover, the company continues to execute its Government transition – which will move its business model from low-value revenues to sustainable and value-added revenues.
Its Government contract margin soared to 8.8% in Q3 from 7% in Q3 2016. The growth in margin reflects the strategy of shifting the revenue mix from PMO to the higher margin areas including, reconnaissance, the intelligence surveillance and mission support lines of business.
The company expects to generate better revenue in the final quarter of 2017, compared to the previous quarter, supported by its move towards innovative software solutions. The CEO says, “Our clear indication and product roadmap to the future for enterprise software for restaurants and retail outlets is a competitive advantage for PAR and positions us well for continued growth.”
Featured Image: partech.com
