| Delaware                                                            | 16-1434688                                   |
|---------------------------------------------------------------------|----------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification Number) |
| PAR      Technology Park                                            |                                         |
| 8383      Seneca Turnpike                                           |                                         |
| New      Hartford, New York                                         | 13413-4991                                   |
| (Address      of principal executive offices)                       | (Zip      Code)                              |

|                              | Name      of Each Exchange on |
|-----------------------------------|-------------------------------|
| Title      of Each Class          | Which      Registered         |
| Common      Stock, $.02 par value | New      York Stock Exchange  |

| Large      Accelerated Filer o | Accelerated Filer x | Non      Accelerated Filer o | Smaller      reporting company o |
|--------------------------------|---------------------|------------------------------|----------------------------------|

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| Item Number |                                                                                                                             | Page     |
|-------------|----------------------------------------------------------------------------------------------------------------------------------|----------|
|        |                                                                                                                             |     |
|        | PART      I                                                                                                                      |     |
| Item 1.     | Business                                                                                                                         | 2        |
| Item 1A.    | Risk      Factors                                                                                                                | 15       |
| Item 2.     | Properties                                                                                                                       | 21       |
| Item 3.     | Legal      Proceedings                                                                                                           | 21       |
| Item 4.     | RESERVED                                                                                                                         |  21 |
|        |                                                                                                                             |     |
|        | PART      II                                                                                                                     |     |
| Item 5.     | Market      for the Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 22       |
| Item 6.     | Selected      Financial Data                                                                                                     | 23       |
| Item 7.     | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                            | 24       |
| Item 7A.    | Quantitative      and Qualitative Disclosures About Market Risk                                                                  | 43       |
| Item 8.     | Financial      Statements and Supplementary Data                                                                                 | 43       |
| Item 9A.    | Controls      and Procedures                                                                                                     | 43       |
|        |                                                                                                                             |     |
|        | PART      III                                                                                                                    |     |
| Item 10.    | Directors,      Executive Officers and  Corporate Governance                                                           | 45       |
| Item 11.    | Executive      Compensation                                                                                                      | 45       |
| Item 12.    | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                         | 45       |
| Item 13.    | Certain      Relationships and Related Transactions, and Director      Independence                                              | 45       |
| Item 14.    | Principal      Accounting Fees and Services                                                                                      | 45       |
|        |                                                                                                                             |     |
|        | PART      IV                                                                                                                     |     |
| Item 15.    | Exhibits,      Financial Statement Schedules                                                                                     | 46       |
|        | Signatures                                                                                                                       | 77       |

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Item 1

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Item 1A

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Item 2: 

| Location               | Industry  Segment | Floor Area Principal    Operations                                                                                       | Number of Sq.      Ft. |
|------------------------|-----------------------------|--------------------------------------------------------------------------------------------------------------------------|------------------------|
|                   |                        |                                                                                                                     |                   |
| New      Hartford, NY  | HospitalityGovernment       | Principal      executive offices,manufacturing,      research anddevelopment      laboratories,computing      facilities | 140,850                |
| Rome,      NY          | Government                  | Research      and development                                                                                            | 27,300                 |
| Stowe,      VT         | Hospitality                 | Sales,      service and research and development                                                                         | 21,300                 |
| Boulder,      CO       | Hospitality                 | Service                                                                                                                  | 20,500                 |
| Boca      Raton, FL    | Hospitality                 | Research      and development                                                                                            | 14,900                 |
| Sydney,      Australia | Hospitality                 | Sales      and service                                                                                                   | 14,000                 |
| Las      Vegas, NV     | Hospitality                 | Service                                                                                                                  | 12,000                 |
| Vaughn,      Canada    | Hospitality                 | Sales,      service and research and development                                                                         | 8,000             |
| Toronto,      Canada   | Hospitality                 | Sales,      service and research and development                                                                         | 7,700                  |

Item 3:

Item4:

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Item 5:

|                |   | 2009   |   |   | 2008   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| Period              |   | Low    |   |   | High   |   |   | Low |   |   | High |   |
|                |   |   |   |   |   |   |   |   |   |   |   |   |
| First      Quarter  |   | $      | 3.74   |   |   | $      | 6.03 |   |   | $ | 5.57 |   |   | $ | 8.25 |   |
| Second      Quarter |   | $      | 4.84   |   |   | $      | 7.23 |   |   | $ | 6.18 |   |   | $ | 9.79 |   |
| Third      Quarter  |   | $      | 5.00   |   |   | $      | 7.24 |   |   | $ | 6.02 |   |   | $ | 8.75 |   |
| Fourth      Quarter |   | $      | 5.26   |   |   | $      | 6.59 |   |   | $ | 2.75 |   |   | $ | 7.44 |   |

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Item 6:

|                                       | Year ended December      31, |   |
|--------------------------------------------|------------------------------|--------|
|                                       |                         | 2009   |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Net      revenues                          |                         | $      | 223,048 |   |   | $ | 232,687 |   |   | $ | 209,484 |   |   | $ | 208,667 |   |   | $ | 205,639 |   |
| Cost      of sales                         |                         | $      | 177,573 |   |   | $ | 175,237 |   |   | $ | 157,576 |   |   | $ | 153,158 |   |   | $ | 150,053 |   |
| Gross      margin                          |                         | $      | 45,475 |   |   | $ | 57,450 |   |   | $ | 51,908 |   |   | $ | 55,509 |   |   | $ | 55,586 |   |
| Selling,      general & administrative |                         | $      | 36,207 |   |   | $ | 36,790 |   |   | $ | 37,517 |   |   | $ | 33,440 |   |   | $ | 30,867 |   |
| (Provision)      benefit for income taxes  |                         | $      | 1,314 |   |   | $ | (1,358 | ) |   | $ | 1,497 |   |   | $ | (3,146 | ) |   | $ | (5,358 | ) |
| Net      income (loss)                     |                         | $      | (5,186 | ) |   | $ | 2,217 |   |   | $ | (2,708 | ) |   | $ | 5,721 |   |   | $ | 9,432 |   |
| Basic      earnings (loss) per share       |                         | $      | (.36 | ) |   | $ | .15 |   |   | $ | (.19 | ) |   | $ | .40 |   |   | $ | .68 |   |
| Diluted      earnings (loss) per share     |                         | $      | (.36 | ) |   | $ | .15 |   |   | $ | (.19 | ) |   | $ | .39 |   |   | $ | .64 |   |

|                            | December 31, |
|---------------------------------|--------------|
|                            |         | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |
| Current      assets             |         | $ | 92,916 |   |   | $ | 110,038 |   |   | $ | 97,879 |   |   | $ | 95,453 |   |   | $ | 84,492 |   |
| Current      liabilities        |         | $ | 46,201 |   |   | $ | 59,969 |   |   | $ | 52,284 |   |   | $ | 46,473 |   |   | $ | 43,661 |   |
| Total      assets               |         | $ | 136,103 |   |   | $ | 153,988 |   |   | $ | 146,518 |   |   | $ | 142,258 |   |   | $ | 125,149 |   |
| Long-term      debt             |         | $ | 4,455 |   |   | $ | 5,852 |   |   | $ | 6,932 |   |   | $ | 7,708 |   |   | $ | 1,948 |   |
| Shareholders’      equity |         | $ | 83,235 |   |   | $ | 86,257 |   |   | $ | 84,987 |   |   | $ | 86,083 |   |   | $ | 78,492 |   |

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Item 7:

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|                            |   |  Total |   |   | Less      Than1      Year |   |   | 1-3      Years |   |   | 3 -      5 Years |   |   | More      than 5 Years |   |
|---------------------------------|--------|-------------|--------|--------|---------------------------|--------|--------|----------------|--------|--------|------------------|--------|--------|------------------------|--------|
| Long-term      debt obligations |   | $           | 5,859  |   |                      | $      | 1,404  |           |   | $      | 3,205            |   |   | $                      | 316    |   |   | $ | 934 |   |
| Operating      lease            |   |        | 10,001 |   |                      |   | 2,499  |           |   |   | 3,670            |   |   |                   | 2,761  |   |   |   | 1,071 |   |
|                            |   |        |   |   |                      |   |   |           |   |   |             |   |   |                   |   |   |   |   |   |   |
| Total                           |   | $           | 15,860 |   |                      | $      | 3,903  |           |   | $      | 6,875            |   |   | $                      | 3,077  |   |   | $ | 2,005 |   |

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Item 7A.

Item8: 

Item 9A:

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Item 10:

Item 11:

Item 12:

Item 13: 

Item14:

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Item 15:

|  (a)Documents filed as a part of the Form      10-K                                                                                       |  Form 10-K      Page  |
|------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|
| Financial Statements:                                                                                                                          |                            |
|     Report      of Independent Registered Public Accounting Firm                                                           | 47                              |
|     Consolidated      Balance Sheets at December 31, 2009 and 2008                                                         | 48                              |
|     Consolidated      Statements of Operations for the three years ended December      31, 2009                            | 49                              |
|     Consolidated      Statements of Comprehensive Income (Loss) for the three years ended      December 31, 2009           | 50                              |
|     Consolidated      Statements of Changes in Shareholders’ Equity for the three years      ended December 31, 2009 | 51                              |
|     Consolidated      Statements of Cash Flows for the three years ended December      31, 2009                            | 52                              |
|     Notes      to Consolidated Financial Statements                                                                        | 53                              |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | December      31  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |  2009             |   |   |  2008 |   |
| AssetsCurrent      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   |   |   |   |   |
| Cash and cash      equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                      | 3,907 |   |   | $ | 6,227 |   |
| Accounts      receivable-net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                   | 46,107 |   |   |   | 53,582 |   |
| Inventories-net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   | 32,867 |   |   |   | 41,132 |   |
| Income taxrefunds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 438 |   |   |   | 208 |   |
| Deferred income    taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                   | 6,362 |   |   |   | 5,301 |   |
| Other current    assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   | 3,235 |   |   |   | 3,588 |   |
| Total current    assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   | 92,916 |   |   |   | 110,038 |   |
| Property,      plant and equipment - net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                   | 6,332 |   |   |   | 6,879 |   |
| Deferred      income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   | 1,202 |   |   |   | 1,525 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                   | 26,635 |   |   |   | 25,684 |   |
| Intangible      assets - net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                   | 7,243 |   |   |   | 8,251 |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 1,775 |   |   |   | 1,611 |   |
| Total Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                      | 136,103 |   |   | $ | 153,988 |   |
| Liabilities      and Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   |   |   |   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                   |   |   |   |   |   |   |
| Current portion of long-term      debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                      | 1,404 |   |   | $ | 1,079 |   |
| Borrowings under lines of      credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                   | 2,000 |   |   |   | 8,800 |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | 12,942 |   |   |   | 15,293 |   |
| Accrued salaries and      benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   | 7,607 |   |   |   | 8,360 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | 3,868 |   |   |   | 3,962 |   |
| Customer deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 1,782 |   |   |   | 6,157 |   |
| Deferred service      revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   | 16,598 |   |   |   | 16,318 |   |
| Total current      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                   | 46,201 |   |   |   | 59,969 |   |
| Long-term      debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                   | 4,455 |   |   |   | 5,852 |   |
| Other      long-term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | 2,212 |   |   |   | 1,910 |   |
| Shareholders’      Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |
| Preferred stock, $.02 par      value,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                   |   |   |   |   |   |   |
| 1,000,000 shares      authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | − |   |   |   | − |   |
| Common stock, $.02 par      value,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   |   |   |   |   |   |   |
| 29,000,000 shares      authorized;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   |   |   |   |   |   |   |
| 16,449,695 and 16,189,718 shares      issued;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   |   |   |   |   |   |   |
|          14,796,940      and 14,536,963 outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | 329 |   |   |   | 324 |   |
| Capital in excess of par      value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                   | 41,382 |   |   |   | 40,173 |   |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 47,482 |   |   |   | 52,668 |   |
| Accumulated other comprehensive      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                   | (449 | ) |   |   | (1,399 | ) |
| Treasury stock, at cost,      1,652,755      shares                                                                              |   |                   | (5,509 | ) |   |   | (5,509 | ) |
| Total shareholders’      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                   | 83,235 |   |   |   | 86,257 |   |
| Total Liabilities and      Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                      | 136,103 |   |   | $ | 153,988 |   |

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|                                                 | Year Ended December 31,  |                                                                                           |
|------------------------------------------------------|-------------------------------|------------------------------------------------------------------------------------------------|
|                                                 |                          |  2009               |   |   |     2008              |   |   |     2007               |   |
| Net      revenues:                                   |                          |                                                                                           |   |   |   |   |   |   |   |
| Product                                              |                          | $                                                                                              | 72,555 |   |   | $ | 81,763 |   |   | $ | 77,116 |   |
| Service                                              |                          |                                                                                           | 74,046 |   |   |   | 75,430 |   |   |   | 67,370 |   |
| Contract                                             |                          |                                                                                           | 76,447 |   |   |   | 75,494 |   |   |   | 64,998 |   |
|                                                 |                          |                                                                                           | 223,048 |   |   |   | 232,687 |   |   |   | 209,484 |   |
| Costs      of sales:                                 |                          |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Product                                              |                          |                                                                                           | 48,945 |   |   |   | 49,440 |   |   |   | 45,635 |   |
| Service                                              |                          |                                                                                           | 56,408 |   |   |   | 54,421 |   |   |   | 51,078 |   |
| Contract                                             |                          |                                                                                           | 72,220 |   |   |   | 71,376 |   |   |   | 60,863 |   |
|                                                 |                          |                                                                                           | 177,573 |   |   |   | 175,237 |   |   |   | 157,576 |   |
| Gross margin                                         |                          |                                                                                           | 45,475 |   |   |   | 57,450 |   |   |   | 51,908 |   |
| Operating      expenses:                             |                          |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Selling, general and      administrative             |                          |                                                                                           | 36,207 |   |   |   | 36,790 |   |   |   | 37,517 |   |
| Research and      development                        |                          |                                                                                           | 14,196 |   |   |   | 15,295 |   |   |   | 17,155 |   |
| Amortization of identifiable      intangible assets  |                          |                                                                                           | 1,337 |   |   |   | 1,535 |   |   |   | 1,572 |   |
|                                                 |                          |                                                                                           | 51,740 |   |   |   | 53,620 |   |   |   | 56,244 |   |
|                                                 |                          |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss)                         |                          |                                                                                           | (6,265 | ) |   |   | 3,830 |   |   |   | (4,336 | ) |
| Other      income, net                               |                          |                                                                                           | 165 |   |   |   | 921 |   |   |   | 1,227 |   |
| Interest      expense                                |                          |                                                                                           | (400 | ) |   |   | (1,176 | ) |   |   | (1,096 | ) |
|                                                 |                          |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before provision for income taxes |                          |                                                                                           | (6,500 | ) |   |   | 3,575 |   |   |   | (4,205 | ) |
| (Provision)      benefit for income taxes            |                          |                                                                                           | 1,314 |   |   |   | (1,358 | ) |   |   | 1,497 |   |
| Net      income (loss)                               |                          | $                                                                                              | (5,186 | ) |   | $ | 2,217 |   |   | $ | (2,708 | ) |
| Earnings      (loss) per share                       |                          |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |                          | $                                                                                              | (.36 | ) |   | $ | .15 |   |   | $ | (.19 | ) |
| Diluted                                              |                          | $                                                                                              | (.36 | ) |   | $ | .15 |   |   | $ | (.19 | ) |
| Weighted      average shares outstanding             |                          |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |                          |                                                                                           | 14,547 |   |   |   | 14,421 |   |   |   | 14,345 |   |
| Diluted                                              |                          |                                                                                           | 14,547 |   |   |   | 14,761 |   |   |   | 14,345 |   |

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|                                                |   |   |                   | Year      Ended December 31,  |   |   |
|-----------------------------------------------------|--------|--------|------------------------|------------------------------------|--------|--------|
|                                                |   |   | 2009    |                               |   |   | 2008   |   |   |   | 2007 |   |
|                                                |   |   |                   |                               |   |   |   |   |   |   |   |   |
| Net      income (loss)                              |   | $      | (5,186                 | )                                  |   | $      | 2,217 |   |   | $ | (2,708 | ) |
| Other      comprehensive income (loss), net of tax: |   |   |                   |                               |   |   |   |   |   |   |   |   |
| Foreign currency translation      adjustments       |   |   | 950                    |                               |   |   | (1,871 | ) |   |   | 961 |   |
| Comprehensive      income (loss)                    |   | $      | (4,236                 | )                                  |   | $      | 346 |   |   | $ | (1,747 | ) |

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|                                                             |   | Common Stock |      |   | Capital      in excess of |   |    | Retained              |   |   | AccumulatedOther  Comprehensive   |   |   | Treasury      Stock   | Total      Shareholders’ |   |
|------------------------------------------------------------------|--------|-------------------|-----------|--------|--------------------------------|--------|---------|-----------------------|--------|--------|-------------------------------------------------------|--------|--------|---------------------------------|--------------------------------|--------|
|  (in      thousands)                                        |   | Shares            |      |   | Amount                    |   |    | Par Value   |   |   | Earnings                                              |   |   | Income (Loss)                   |                           |   | Shares |   |   | Amount |   |   | Equity |   |
|                                                             |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            |                           |   |   |   |   |   |   |   |   |   |
| Balances      at December 31, 2006                               |   |              | 15,980    |   |                           | $      | 320     |                  |   | $      | 38,602                                                |   |   | $                               | 53,159                         |   |   | $ | (489 | ) |   |   | (1,653 | ) |   | $ | (5,509 | ) |   | $ | 86,083 |   |
|  Net      loss                                              |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            | (2,708                         | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,708 | ) |
| Issuance      of common stock upon the exercise of stock options |   |              |  58  |   |                           |   |  1 |                  |   |   |  202                                             |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  203 |   |
| Issuance      of restricted stock awards                         |   |              |  10  |   |                           |   |    |                  |   |   |                                                  |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      based compensation                                   |   |              |      |   |                           |   |    |                  |   |   | 448                                                   |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 448 |   |
| Translation      adjustments, net of tax of $564                 |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            |                           |   |   |   |  961 |   |   |   |   |   |   |   |   |   |   |   |  961 |   |
| Balances      at December 31, 2007                               |   |              | 16,048    |   |                           |   | 321     |                  |   |   | 39,252                                                |   |   |                            | 50,451                         |   |   |   | 472 |   |   |   | (1,653 | ) |   |   | (5,509 | ) |   |   | 84,987 |   |
|  Net      income                                            |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            |  2,217                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  2,217 |   |
| Issuance      of common stock upon the exercise of stock options |   |              |  92  |   |                           |   |  2 |                  |   |   |  526                                             |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  528 |   |
| Issuance      of restricted stock awards                         |   |              |  50  |   |                           |   |  1 |                  |   |   |                                                  |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
| Equity      based compensation                                   |   |              |      |   |                           |   |    |                  |   |   | 395                                                   |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 395 |   |
| Translation      adjustments, net of tax of $1,239               |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            |                           |   |   |   | (1,871 | ) |   |   |   |   |   |   |   |   |   |   | (1,871 | ) |
| Balances      at December 31, 2008                               |   |              | 16,190    |   |                           |   | 324     |                  |   |   | 40,173                                                |   |   |                            | 52,668                         |   |   |   | (1,399 | ) |   |   | (1,653 | ) |   |   | (5,509 | ) |   |   | 86,257 |   |
|  Net      loss                                              |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            | (5,186                         | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (5,186 | ) |
| Issuance      of common stock upon the exercise of stock options |   |              |  192 |   |                           |   |  4 |                  |   |   |  543                                             |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  547 |   |
| Issuance      of restricted stock awards                         |   |              |  68  |   |                           |   |  1 |                  |   |   |                                                  |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  1 |   |
| Equity      based compensation                                   |   |              |      |   |                           |   |    |                  |   |   | 666                                                   |   |   |                            |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 666 |   |
| Translation      adjustments, net of tax of $638                 |   |              |      |   |                           |   |    |                  |   |   |                                                  |   |   |                            |                           |   |   |   |  950 |   |   |   |   |   |   |   |   |   |   |   |  950 |   |
| Balances      at December 31, 2009                               |   |              | 16,450    |   |                           | $      | 329     |                  |   | $      | 41,382                                                |   |   | $                               | 47,482                         |   |   | $ | (449 | ) |   |   | (1,653 | ) |   | $ | (5,509 | ) |   | $ | 83,235 |   |

----

|                                                                                                         |   |  Year      ended December 31, |    |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------|---------|
|                                                                                                         |   |   2009                   |    |   |  2008  |   |   |   2007 |   |
| Cash      flows from operating activities:                                                                   |   |                               |    |   |   |   |   |   |   |
| Net income    (loss)                                                                                         |   | $                                  | (5,186  | ) |   | $ | 2,217 |   |   | $ | (2,708 | ) |
| Adjustments to reconcile net      income (loss) to net cash provided      by (used in) operating activities: |   |                               |    |   |   |   |   |   |   |   |   |   |
| Depreciation and      amortization                                                                           |   |                               | 3,846   |   |   |   | 4,029 |   |   |   | 4,079 |   |
| Provision for bad      debts                                                                                 |   |                               | 1,432   |   |   |   | 1,052 |   |   |   | 3,034 |   |
| Provision for obsolete      inventory                                                                        |   |                               | 7,752   |   |   |   | 2,625 |   |   |   | 3,001 |   |
| Equity based      compensation                                                                               |   |                               | 666     |   |   |   | 395 |   |   |   | 448 |   |
| Deferred income    tax                                                                                       |   |                               | (1,376  | ) |   |   | 546 |   |   |   | (2,211 | ) |
| Changes in operating assets and      liabilities:                                                            |   |                               |    |   |   |   |   |   |   |   |   |   |
| Accounts    receivable                                                                                       |   |                               | 6,339   |   |   |   | (11,026 | ) |   |   | 149 |   |
| Inventories                                                                                                  |   |                               | 654     |   |   |   | (3,438 | ) |   |   | (7,372 | ) |
| Income taxrefunds                                                                                            |   |                               | (230    | ) |   |   | 313 |   |   |   | 582 |   |
| Other current    assets                                                                                      |   |                               | 411     |   |   |   | (218 | ) |   |   | (633 | ) |
| Other assets                                                                                                 |   |                               | (26     | ) |   |   | 388 |   |   |   | (729 | ) |
| Accounts payable                                                                                             |   |                               | (2,400  | ) |   |   | (1,685 | ) |   |   | 4,603 |   |
| Accrued salaries and      benefits                                                                           |   |                               | (852    | ) |   |   | (1,559 | ) |   |   | 1,640 |   |
| Accrued expenses                                                                                             |   |                               | (95     | ) |   |   | 204 |   |   |   | 1,999 |   |
| Customer deposits                                                                                            |   |                               | (4,375  | ) |   |   | 2,259 |   |   |   | 242 |   |
| Deferred service      revenue                                                                                |   |                               | 206     |   |   |   | 1,961 |   |   |   | 2,103 |   |
| Other long-term      liabilities                                                                             |   |                               | 302     |   |   |   | (405 | ) |   |   | 436 |   |
| Net cash provided by (used in)      operating activities                                                     |   |                               | 7,068   |   |   |   | (2,342 | ) |   |   | 8,663 |   |
| Cash      flows from investing activities:                                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                                    |   |                               | (1,306  | ) |   |   | (1,042 | ) |   |   | (2,017 | ) |
| Capitalization of software      costs                                                                        |   |                               | (845    | ) |   |   | (797 | ) |   |   | (1,158 | ) |
| Contingent purchase price paid      on prior year acquisitions                                               |   |                               | (54     | ) |   |   | (156 | ) |   |   | (278 | ) |
| Cash received from voluntary      conversion of long-lived other assets                                      |   |                               | ─ |   |   |   | 1,571 |   |   |   | ─ |   |
| Net cash used in investing      activities                                                                   |   |                               | (2,205  | ) |   |   | (424 | ) |   |   | (3,453 | ) |
| Cash      flows from financing activities:                                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |
| Net borrowings (payments)      under line-of-credit agreements                                               |   |                               | (6,800  | ) |   |   | 6,300 |   |   |   | (5,213 | ) |
| Payments of long-term      debt                                                                              |   |                               | (1,072  | ) |   |   | (773 | ) |   |   | (244 | ) |
| Proceeds from the exercise of      stock options                                                             |   |                               | 507     |   |   |   | 488 |   |   |   | 203 |   |
| Excess tax benefit of stock      option exercises                                                            |   |                               | 40      |   |   |   | 41 |   |   |   | ─ |   |
| Net cash provided by (used in)      financing activities                                                     |   |                               | (7,325  | ) |   |   | 6,056 |   |   |   | (5,254 | ) |
| Effect      of exchange rate changes on cash and cash equivalents                                            |   |                               | 142     |   |   |   | (1,494 | ) |   |   | 202 |   |
| Net      increase (decrease) in cash and cash equivalents                                                    |   |                               | (2,320  | ) |   |   | 1,796 |   |   |   | 158 |   |
| Cash      and cash equivalents at beginning of period                                                        |   |                               | 6,227   |   |   |   | 4,431 |   |   |   | 4,273 |   |
| Cash      and cash equivalents at end of period                                                              |   | $                                  | 3,907   |   |   | $ | 6,227 |   |   | $ | 4,431 |   |
|  Supplemental      disclosures of cash flow information:                                                |   |                               |    |   |   |   |   |   |   |   |   |   |
| Cash      paid during the period for:                                                                        |   |                               |    |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                     |   | $                                  | 555     |   |   | $ | 873 |   |   | $ | 963 |   |
| Income taxes, net of      refunds                                                                            |   |                               | 333     |   |   |   | 508 |   |   |   | 104 |   |
|  See      accompanying notes to consolidated financial statements                                       |   |                               |    |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

|                                |   |   |       |  Year      ended December 31 |    |   |
|-------------------------------------|--------|--------|------------|-----------------------------------|--------------|--------|
|                                |   |   |       | (in thousands)                    |         |   |   |
|                                |   |   |  2009 |                              |         |   | 2008 |   |   |   | 2007   |   |
|                                |   |   |       |                              |         |   |   |   |   |   |   |   |
| Foreign      currency gain / (loss) |   | $      | (19        | )                                 |         | $      | 314 |   |   | $ | 605 |   |
| Rental      income-net              |   |   | 191        |                              |         |   | 410 |   |   |   | 444 |   |
| Other                               |   |   | (7         | )                                 |         |   | 197 |   |   |   | 178 |   |
|                                |   | $      | 165        |                              |         | $      | 921 |   |   | $ | 1,227 |   |

----

|                               |   |   | December      31,          |   |
|------------------------------------|--------|--------|---------------------------------|--------|
|                               |   |   |  (in      thousands)  |   |
|                               |   |   | 2009                  |   |   |   | 2008    |   |
|                               |   |   |                            |   |   |   |   |   |
| Software      costs                |   | $      | 7,997                           |   |   | $ | 6,843 |   |
| Customer      relationships        |   |   | 4,457                           |   |   |   | 4,401 |   |
| Trademarks      (non-amortizable)  |   |   | 2,731                           |   |   |   | 2,677 |   |
| Other                              |   |   | 596                             |   |   |   | 577 |   |
|                               |   |   | 15,781                          |   |   |   | 14,498 |   |
| Less      accumulated amortization |   |   | (8,538                          | )      |   |   | (6,247 | ) |
|                               |   | $      | 7,243                           |   |   | $ | 8,251 |   |

| 2010       |   | $      | 2,048   |   |
|------------|--------|--------|---------|--------|
| 2011       |   |   | 1,613   |   |
| 2012       |   |   | 851     |   |
| Thereafter |   |   | ─ |   |
|       |   | $      | 4,512   |   |

----

|   | 2009   | 2008 | 2007 |
|--------|------------------|------|------|

|                                                                   |   |   |       |   |   |   |        |   |   |   |          |   |
|------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|---------------|--------|
| Net      income (loss)                                                 |   | $      | (5,186     | )      |   | $      | 2,217  |   |   | $      | (2,708        | )      |
| Basic:                                                                 |   |   |       |   |   |   |        |   |   |   |          |   |
| Shares outstanding at beginning      of year                           |   |   | 14,471     |   |   |   | 14,372      |   |   |   | 14,310        |   |
| Weighted shares issued during the      year                            |   |   | 76         |   |   |   | 49          |   |   |   | 35            |   |
| Weighted average common shares,      basic                             |   |   | 14,547     |   |   |   | 14,421      |   |   |   | 14,345        |   |
| Earnings (loss) per common share,      basic                           |   | $      | (.36       | )      |   | $      | .15         |   |   | $      | (.19          | )      |
| Diluted:                                                               |   |   |       |   |   |   |        |   |   |   |          |   |
| Weighted average common shares,      basic                             |   |   | 14,547     |   |   |   | 14,421      |   |   |   | 14,345        |   |
| Weighted average shares issued      during the year                    |   |   | —    |   |   |   | 65          |   |   |   | —       |   |
| Dilutive impact of stock options      and restricted stock      awards |   |   | —    |   |   |   |  275   |   |   |   |  — |   |
| Weighted average common shares,      diluted                           |   |   | 14,547     |   |   |   | 14,761      |   |   |   | 14,345        |   |
| Earnings (loss) per common share,      diluted                         |   | $      |  (.36 | )      |   | $      |  .15   |   |   | $      | (.19          | )      |

----

|                                                                     |   |   |  Year ended December 31, |   |
|--------------------------------------------------------------------------|--------|--------|-------------------------------|--------|
|                                                                     |   |   |  2009                    |   |   |   | 2008 |   |   |   | 2007 |   |
|                                                                     |   |   |                          |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of year                                        |   | $      | 25,684                        |   |   | $ | 26,998 |   |   | $ | 25,734 |   |
|                                                                     |   |   |                          |   |   |   |   |   |   |   |   |   |
| Purchase      accounting adjustment related to prior year    acquisition |   |   | —                       |   |   |   | — |   |   |   | 27 |   |
|                                                                     |   |   |                          |   |   |   |   |   |   |   |   |   |
|  Contingent      purchase price earned on prior year acquisitions   |   |   | 33                            |   |   |   | 54 |   |   |   | 156 |   |
|                                                                     |   |   |                          |   |   |   |   |   |   |   |   |   |
| Change      in foreign exchange rates during the period                  |   |   | 918                           |   |   |   | (1,368 | ) |   |   | 1,081 |   |
|                                                                     |   |   |                          |   |   |   |   |   |   |   |   |   |
| Balance      at end of year                                              |   | $      | 26,635                        |   |   | $ | 25,684 |   |   | $ | 26,998 |   |

----

----

----

|            | December 31, |
|--------------------------------------------------------------|--------------|

|            | (inthousands) |
|--------------------------------------------------------------|---------------|

|                           |   |  2009 |   |   |  2008 |   |
|--------------------------------|--------|------------|--------|--------|------------|--------|
| Government      segment:       |   |       |   |   |       |   |
| Billed                         |   | $          | 13,898 |   |       | $      | 13,260 |   |
| Advanced    billings           |   |       | (572   | )      |       |   | (2,096 | ) |
|                           |   |       | 13,326 |   |       |   | 11,164 |   |
| Hospitality      segment:      |   |       |   |   |       |   |   |   |
| Accounts receivable -      net |   |       | 31,730 |   |       |   | 42,418 |   |
|                           |   |       |   |   |       |   |   |   |
| Other                          |   |       | 1,051  |   |       |   | ─ |   |
|                           |   | $          | 46,107 |   |       | $      | 53,582 |   |

----

|   | December 31,(inthousands) |
|--------|---------------------------|

|                 |   |   |  2009  |   |   |   | 2008  |   |
|----------------------|--------|--------|------------------|--------|--------|--------|------------|--------|
|                 |   |   |             |   |   |   |       |   |
| Finished      Goods  |   | $      | 8,314            |   |   | $      | 7,761      |   |
| Work      in process |   |   | 1,462            |   |   |   | 1,425      |   |
| Component      parts |   |   | 7,029            |   |   |   | 13,661     |   |
| Service      parts   |   |   | 16,062           |   |   |   | 18,285     |   |
|                 |   | $      | 32,867           |   |   | $      | 41,132     |   |

|   | December      31, |
|--------|-------------------|

|   |   (in thousands) |
|--------|-----------------------|

|                                                |   |   | 2009  |   |   |   | 2008  |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                |   |   |       |   |   |   |       |   |
| Land                                                |   | $      | 253        |   |   | $      | 253        |   |
| Buildings      and improvements                     |   |   | 5,984      |   |   |   | 5,857      |   |
| Rental      property                                |   |   | 5,519      |   |   |   | 5,490      |   |
| Furniture      and equipment                        |   |   | 22,033     |   |   |   | 20,787     |   |
|                                                |   |   | 33,789     |   |   |   | 32,387     |   |
|                                                |   |   |       |   |   |   |       |   |
| Less      accumulated depreciation and amortization |   |   | (27,457    | )      |   |   | (25,508    | )      |
|                                                |   | $      | 6,332      |   |   | $      | 6,879      |   |

----

| 2010   |   | $      | 418 |   |
|--------|--------|--------|-----|--------|
| 2011   |   |   | 246 |   |
| 2012   |   |   | 55  |   |
| 2013   |   |   | 54  |   |
| 2014   |   |   | 5   |   |
|   |   | $      | 778 |   |

| 2010       |   | $      | 2,499  |   |
|------------|--------|--------|--------|--------|
| 2011       |   |   | 1,928  |   |
| 2012       |   |   | 1,742  |   |
| 2013       |   |   | 1,641  |   |
| 2014       |   |   | 1,120  |   |
| Thereafter |   |   | 1,071  |   |
|       |   | $      | 10,001 |   |

----

----

| 2010       |   | $      | 1,404 |   |
|------------|--------|--------|-------|--------|
| 2011       |   |   | 1,711 |   |
| 2012       |   |   | 1,494 |   |
| 2013       |   |   | 153   |   |
| 2014       |   |   | 163   |   |
| Thereafter |   |   | 934   |   |
|       |   | $      | 5,859 |   |

----

|   |   No.      of Shares(in thousands) |   Weighted AverageExercise Price | Aggregate      IntrinsicValue(inthousands) |
|--------|----------------------------------------------|--------------------------------------------|--------------------------------------------|

| Outstanding      at December 31, 2008                 |   |   | 980    |   |   | $      | 4.63   |   |   | $      | 897    |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Options      granted                                  |   |   | 232    |   |   |   | 5.42   |   |   |   |   |   |
| Exercised                                             |   |   | (192   | )      |   |   | 2.63   |   |   |   |   |   |
| Forfeited      and cancelled                          |   |   | (31    | )      |   |   | 5.90   |   |   |   |   |   |
| Outstanding      at December 31, 2009                 |   |   | 989    |   |   | $      | 5.17   |   |   | $      | 603    |   |
| Vested      and expected to vest at December 31, 2009 |   |   | 978    |   |   | $      | 5.16   |   |   | $      | 606    |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      shares exercisable as of December 31, 2009 |   |   | 734    |   |   | $      | 4.64   |   |   | $      | 837    |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      remaining available for grant             |   |   | 441    |   |   |   |   |   |   |   |   |   |

|                                          |        2009 |     2008                             | 2007                                          |
|-----------------------------------------------|------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------|
| Expected      option life                     | 5.2      years   | 6.2      years                                                               | 4.5      years                                                         |
| Weighted      average risk-free interest rate | 2%               |            3.4      % |            4.7% |
| Weighted      average expected volatility     | 49%              |            46%        |            48%  |
| Expected      dividend yield                  | 0%               |            0%         |            0%   |

----

|   | Range of      Exercise Prices   | Number      Outstanding (in thousands) |  Weighted      Average Remaining Life    |        |  Weighted Average ExercisePrice |           |
|--------|-------------------------------------------|----------------------------------------|--------------------------------------------------------------|-------------|--------------------------------------|----------------|
|   |                                      |                                   |                                                         |        |                                 |           |   |   |   |
| $      | 1.25                                 |  -                                | $                                                       |  4.73  | 426                                  | 2.4      Years | $ | 2.50 |   |
| $      | 5.23                                 |  -                                | $                                                       |  6.01  | 310                                  | 6.7      Years | $ | 5.74 |   |
| $      | 6.25                                      |  -                                | $                                                       |  11.40 | 253                                  | 6.9 Years      | $ | 8.95 |   |
| $      | 1.25                                      |  -                                | $                                                       |  11.40 | 989                                  | 4.9 Years      | $ | 5.17 |   |

|  Non-vested shares (in thousands) |   |   | Shares  |   |   |   | Weighted      Average grant-date fair value |   |
|----------------------------------------|--------|--------|---------|--------|--------|--------|--------------------------------------------------|--------|
|                                   |   |   |    |   |   |   |                                             |   |
| Balance      at January 1, 2009        |   |   | 163     |   |   | $      | 3.95                                             |   |
| Granted                                |   |   | 232     |   |   |   | 2.41                                             |   |
| Vested                                 |   |   | (140    | )      |   |   | 3.97                                             |   |
| Forfeited and      cancelled           |   |   | ─ |   |   |   | ─                                          |   |
| Balance      at December 31, 2009      |   |   | 255     |   |   | $      | 3.13                                             |   |

----

|                                      |   |  Year      ended December 31,                |   |
|-------------------------------------------|--------|---------------------------------------------------|--------|
|                                      |   |    (in      thousands)   |   |
|                                      |   |   2009                                  |   |   |   2008  |   |   |   2007 |   |
| Current      income tax:                  |   |                                              |   |   |   |   |   |   |   |
| Federal                                   |   | $                                                 | (960   | ) |   | $ | 49 |   |   | $ | 206 |   |
| State                                     |   |                                              | 220    |   |   |   | 379 |   |   |   | 86 |   |
| Foreign                                   |   |                                              | 802    |   |   |   | 384 |   |   |   | 422 |   |
|                                      |   |                                              | 62     |   |   |   | 812 |   |   |   | 714 |   |
| Deferred      income tax:                 |   |                                              |   |   |   |   |   |   |   |   |   |   |
| Federal                                   |   |                                              | (1,174 | ) |   |   | 487 |   |   |   | (1,872 | ) |
| State                                     |   |                                              | (202   | ) |   |   | 59 |   |   |   | (339 | ) |
|                                      |   |                                              | (1,376 | ) |   |   | 546 |   |   |   | (2,211 | ) |
| Provision      (benefit) for income taxes |   | $                                                 | (1,314 | ) |   | $ | 1,358 |   |   | $ | (1,497 | ) |

|                                         |   |   |  December      31,   |   |
|----------------------------------------------|--------|--------|---------------------------|--------|
|                                         |   |   | (in      thousands)  |   |
|                                         |   |   | 2009                      |   |   |   | 2008  |   |
|                                         |   |   |                      |   |   |   |   |   |
| Software      development expense            |   | $      | 911                       |   |   | $ | 836 |   |
| Intangible      assets                       |   |   | 1,671                     |   |   |   | 1,241 |   |
| Gross      deferred tax liabilities          |   |   | 2,582                     |   |   |   | 2,077 |   |
| Allowances      for bad debts and inventory  |   |   | (5,401                    | )      |   |   | (3,523 | ) |
| Capitalized      inventory costs             |   |   | (72                       | )      |   |   | (108 | ) |
| Employee      benefit accruals               |   |   | (1,415                    | )      |   |   | (1,313 | ) |
| Federal      net operating loss carryforward |   |   | (1,415                    | )      |   |   | (130 | ) |
| State      net operating loss carryforward   |   |   | (361                      | )      |   |   | (333 | ) |
| Tax      credit carryforwards                |   |   | (2,288                    | )      |   |   | (2,378 | ) |
| Foreign      currency                        |   |   | (324                      | )      |   |   | (962 | ) |
| Other                                        |   |   | (274                      | )      |   |   | (156 | ) |
| Gross      deferred tax assets               |   |   | (11,550                   | )      |   |   | (8,903 | ) |
|                                         |   |   |                      |   |   |   |   |   |
| Less      valuation allowance                |   |   | 1,404                     |   |   |   | ─ |   |
|                                         |   |   |                      |   |   |   |   |   |
| Net      deferred tax assets                 |   | $      | (7,564                    | )      |   | $ | (6,826 | ) |

----

|                            |    Year ended      December 31, |
|---------------------------------|------------------------------------------------|
|                            | 2009                                 | 2008   | 2007   |
|                            |                                           |   |   |
| Federal      statutory tax rate | (35.0)%                                        | 35.0% | (35.0)% |
| State      taxes                | (2.1)                                          | 5.3 | (6.6) |
| Non      deductible expenses    | 1.8                                            | 9.3 | 6.8 |
| Tax      credits                | (2.5)                                          | (10.9) | (3.6) |
| Foreign      income taxes       | (3.3)                                          | 0.5 | 1.7 |
| Valuation      allowance        | 21.6                                           | ─ | ─ |
| Other                           | (0.7)                                          | (1.2) | 1.1 |
|                            | (20.2)%                                        | 38.0% | (35.6)% |

----

----

|                                                 |   | Year      ended December 31, |
|------------------------------------------------------|--------|------------------------------|
|                                                 |   | (in thousands)               |
|                                                 |   |   2009             |   |   |  2008 |   |   | 2007 |   |
| Revenues:                                            |   |                         |   |   |   |   |   |   |   |
| Hospitality                                          |   | $                            | 140,429 |   |   | $ | 157,193 |   |   | $ | 144,486 |   |
| Government                                           |   |                         | 76,447 |   |   |   | 75,494 |   |   |   | 64,998 |   |
| Other                                                |   |                         | 6,172 |   |   |   | ─ |   |   |   | ─ |   |
| Total                                                |   | $                            | 223,048 |   |   | $ | 232,687 |   |   | $ | 209,484 |   |
| Operating      income (loss):                        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Hospitality                                          |   | $                            | (9,286 | ) |   | $ | 819 |   |   | $ | (7,701 | ) |
| Government                                           |   |                         | 3,905 |   |   |   | 3,314 |   |   |   | 3,814 |   |
| Other                                                |   |                         | (884 | ) |   |   | (303 | ) |   |   | (449 | ) |
|                                                 |   |                         | (6,265 | ) |   |   | 3,830 |   |   |   | (4,336 | ) |
| Other      income, net                               |   |                         | 165 |   |   |   | 921 |   |   |   | 1,227 |   |
| Interest      expense                                |   |                         | (400 | ) |   |   | (1,176 | ) |   |   | (1,096 | ) |
| Income      (loss) before provision for income taxes |   | $                            | (6,500 | ) |   | $ | 3,575 |   |   | $ | (4,205 | ) |
|                                                 |   |                         |   |   |   |   |   |   |   |   |   |   |
| Identifiable      assets:                            |   |                         |   |   |   |   |   |   |   |   |   |   |
| Hospitality                                          |   | $                            | 109,085 |   |   | $ | 127,678 |   |   | $ | 122,442 |   |
| Government                                           |   |                         | 15,097 |   |   |   | 13,532 |   |   |   | 14,429 |   |
| Other                                                |   |                         | 11,921 |   |   |   | 12,778 |   |   |   | 9,647 |   |
| Total                                                |   | $                            | 136,103 |   |   | $ | 153,988 |   |   | $ | 146,518 |   |
| Goodwill:                                            |   |                         |   |   |   |   |   |   |   |   |   |   |
| Hospitality                                          |   | $                            | 25,899 |   |   | $ | 24,981 |   |   | $ | 26,349 |   |
| Government                                           |   |                         | 736 |   |   |   | 703 |   |   |   | 649 |   |
| Total                                                |   | $                            | 26,635 |   |   | $ | 25,684 |   |   | $ | 26,998 |   |
| Depreciation      and amortization:                  |   |                         |   |   |   |   |   |   |   |   |   |   |
| Hospitality                                          |   | $                            | 3,384 |   |   | $ | 3,567 |   |   | $ | 3,622 |   |
| Government                                           |   |                         | 79 |   |   |   | 88 |   |   |   | 81 |   |
| Other                                                |   |                         | 383 |   |   |   | 374 |   |   |   | 376 |   |
| Total                                                |   | $                            | 3,846 |   |   | $ | 4,029 |   |   | $ | 4,079 |   |
| Capital      expenditures:                           |   |                         |   |   |   |   |   |   |   |   |   |   |
| Hospitality                                          |   | $                            | 1,013 |   |   | $ | 779 |   |   | $ | 1,788 |   |
| Government                                           |   |                         | 47 |   |   |   | 22 |   |   |   | 57 |   |
| Other                                                |   |                         | 246 |   |   |   | 241 |   |   |   | 172 |   |
| Total                                                |   | $                            | 1,306 |   |   | $ | 1,042 |   |   | $ | 2,017 |   |

----

|                 |   |   |  2009 |   |   |   | 2008   |   |   |   | 2007    |   |
|----------------------|--------|--------|------------|--------|--------|--------|------------------|--------|--------|--------|---------|--------|
|                 |   |   |       |   |   |   |             |   |   |   |    |   |
| United      States   |   | $      | 199,569    |   |   | $      | 205,202          |   |   | $      | 179,323 |   |
| Other      Countries |   |   | 23,479     |   |   |   | 27,485           |   |   |   | 30,161  |   |
| Total                |   | $      | 223,048    |   |   | $      | 232,687          |   |   | $      | 209,484 |   |

|                 |   |   | 2009   |   |   |   | 2008    |   |   |   | 2007    |   |
|----------------------|--------|--------|------------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                 |   |   |             |   |   |   |    |   |   |   |    |   |
| United      States   |   | $      | 128,665          |   |   | $      | 142,461 |   |   | $      | 134,766 |   |
| Other      Countries |   |   | 7,438            |   |   |   | 11,527  |   |   |   | 11,752  |   |
| Total                |   | $      | 136,103          |   |   | $      | 153,988 |   |   | $      | 146,518 |   |

|                              |   |  2009 |   |  2008 |   |  2007 |
|-----------------------------------|--------|------------|--------|------------|--------|------------|
|                              |   |       |   |       |   |       |
| Hospitality      segment:         |   |       |   |       |   |       |
| McDonald’s      Corporation |   | 25%        |   | 24%        |   | 25%        |
| Yum! Brands, Inc.                 |   | 13%        |   | 16%        |   | 15%        |
| Government      segment:          |   |       |   |       |   |       |
| U.S. Department of      Defense   |   | 34%        |   | 32%        |   | 31%        |
| All      Others                   |   | 28%        |   | 28%        |   | 29%        |
|                              |   | 100%       |   | 100%       |   | 100%       |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |  Quarter      ended                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   (in      thousands except per share amounts)  |   |
|  2009                                                                  |   |   | March    31                                                    |   |   |   | June    30 |   |   |   | September      30   |   |   |   | December      31 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      revenues                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 60,468                                                         |   |   | $ | 54,459 |   |   | $ | 49,914 |   |   | $ | 58,207 |   |
| Gross      margin                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 13,687                                                         |   |   |   | 12,362 |   |   |   | 11,405 |   |   |   | 8,021 |   |
| Net      income (loss)                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 247                                                            |   |   |   | 238 |   |   |   | (778 | ) |   |   | (4,893 | ) |
| Basic      earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                             |   |   | .02                                                            |   |   |   | .02 |   |   |   | (.05 | ) |   |   | (.33 | ) |
| Diluted      earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                           |   |   | .02                                                            |   |   |   | .02 |   |   |   | (.05 | ) |   |   | (.33 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |  Quarter      ended                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (in      thousands except per share amounts)   |   |
|  2008                                                                |   |   | March    31                                              |   |   |   | June      30   |   |   |   | September      30    |   |   |   | December      31   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      revenues                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 52,107                                                   |   |   | $ | 57,234 |   |   | $ | 57,967 |   |   | $ | 65,379 |   |
| Gross      margin                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 12,359                                                   |   |   |   | 14,032 |   |   |   | 14,561 |   |   |   | 16,498 |   |
| Net      income (loss)                                                                                                                                                                                                                                                                                                                                                                               |   |   | (744                                                     | )      |   |   | 674 |   |   |   | 828 |   |   |   | 1,459 |   |
| Basic      earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                 |   |   | (.05                                                     | )      |   |   | .05 |   |   |   | .06 |   |   |   | .10 |   |
| Diluted      earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                               |   |   | (.05                                                     | )      |   |   | .05 |   |   |   | .06 |   |   |   | .10 |   |

----

SIGNATURES

|                | PAR      TECHNOLOGY CORPORATION      |
|---------------------|--------------------------------------|
|                |                                 |
| March      16, 2010 | /s/John W. Sammon, Jr.               |
|                | John      W. Sammon, Jr.             |
|                | Chairman      of Board and President |

| Signatures | Title | Date |
|------------|-------|------|

| /s/John W. Sammon, Jr.  |                                                                                                                          |                |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------|
| John      W. Sammon, Jr.     | Chairman of the Board      and                                                                                                | March      16, 2010 |
|                         | President (Principal Executive      Officer) and Director                                                                     |                |
|                         |                                                                                                                          |                |
| /s/Charles A. Constantino    |                                                                                                                          |                |
| Charles      A. Constantino  | Vice Chairman of the Board,      Executive Vice President                                                                     | March      16, 2010 |
|                         | and Director                                                                                                                  |                |
|                         |                                                                                                                          |                |
| /s/Sangwoo Ahn     |                                                                                                                          |                |
| Sangwoo      Ahn             | Director                                                                                                                      | March      16, 2010 |
|                         |                                                                                                                          |                |
| /s/James A. Simms       |                                                                                                                          |                |
| James      A. Simms          | Director                                                                                                                      | March      16, 2010 |
|                         |                                                                                                                          |                |
| /s/Paul D. Nielsen      |                                                                                                                          |                |
| Paul      D. Nielsen         | Director                                                                                                                      | March      16, 2010 |
|                         |                                                                                                                          |                |
| /s/Kevin R. Jost   |                                                                                                                          |                |
| Kevin      R. Jost           | Director                                                                                                                      | March      16, 2010 |
|                         |                                                                                                                          |                |
| /s/Ronald J. Casciano   |                                                                                                                          |                |
| Ronald      J. Casciano      | Vice      President, Chief Financial Officer, Treasurer and Chief Accounting Officer      (Principal      Accounting Officer) | March      16, 2010 |

----

|  Exhibit      No. |  Description of      Instrument                                                                                                                    |                                                                                                                                                                              |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                    | Certificate      of Incorporation, as amended                                                                                                                | Filed      as Exhibit 3(i) to the quarterlyreport      on Form 10Q for the periodended      June 30, 2006, of PAR Technology Corporation      and incorporated herein byreference |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 3.3                    | By-laws,      as amended.                                                                                                                                    | Filed      as Exhibit 3.1 to RegistrationStatement      on Form S-2 (RegistrationNo.      333-04077) of PAR TechnologyCorporation      incorporated herein byReference.           |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 4                      | Specimen      Certificate representing the Common Stock.                                                                                                     | Filed      as Exhibit 3.1 to RegistrationStatement      on Form S-2 (RegistrationNo.      333-04077) of PAR TechnologyCorporation      incorporated herein byreference.           |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 10.1                   | Letter      of Agreement with Sandman– SCI Corporation                                                                                                 | Filed      as Exhibit 10.1 to Form S-3/A(Registration      No. 333-102197) of PARTechnology      Corporation incorporatedherein      by reference.                                |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 10.2                   | Asset      Purchase Agreement dated October 27, 2006.  By andamong      PAR Technology Corporation, Par-Siva Corporation andSIVA      Corporation. | Filed      as Exhibit 10.1 to the current reporton      Form 8K dated November 8, 2006 ofPAR      Technology Corporation andincorporated      herein by reference.                |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 10.3                   | JP      Morgan term loan.                                                                                                                                    | Filed      as Exhibit 10.3 to Form 10-K for the year ended      December 31, 2006 andincorporated      herein by reference.                                                       |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 10.4                   | 2005      Equity Incentive Plan of PAR Technology Corporation                                                                                                | Filed      as Exhibit 4.2 to Form S-8(Registration      No. 333-137647) of PARTechnology      Corporation and incorporated herein      by reference.                              |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 10.5                   | Form      of Stock Option Award Agreement                                                                                                                    | Filed      as Exhibit 4.3 to Form S-8(Registration      No. 333-137647) of PARTechnology      Corporation and incorporatedherein      by reference.                               |
|                   |                                                                                                                                                         |                                                                                                                                                                              |
| 10.6                   | Form      of Restricted Stock Award Agreement                                                                                                                | Filed      as Exhibit 4.4 to Form S-8(Registration      No. 333-137647) of PARTechnology      Corporation and incorporatedherein      by reference.                               |

----

|  Exhibit      No.  |  Description of      Instrument                                                                                                                                                                                                                                                   |                                                                                                                                              |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.7                         | June      2007 amendment to bank line of credit agreement –JP      Morgan Chase                                                                                                                                                                                                       | Filed      as Exhibit 10.7 to Form 10-Kfor      the year ended December 31, 2007incorporated      herein by reference.                            |
|  10.8                   |  February      2008 amendment to bank line of credit agreement –JP      Morgan Chase                                                                                                                                                                                             |  Filed      as Exhibit 10.7 to Form 10-K for the year      ended December 31, 2007 incorporatedherein      by reference.                     |
|  10.9                   |  June      2007 amendment to bank line of credit agreement –NBT      Bank                                                                                                                                                                                                        |  Filed      as Exhibit 10.7 to Form 10-K forthe      year ended December 31, 2007incorporated      herein by reference.                      |
|  10.10                  |  January      2008 amendment to bank line of credit agreement–      NBT Bank                                                                                                                                                                                                     |  Filed      as Exhibit 10.7 to Form 10-K for the year      ended December 31, 2007 incorporatedherein      by reference.                     |
|  10.11                  |  January      2008 amendment to bank line of credit agreement–      NBT Bank                                                                                                                                                                                                     |  Filed      as Exhibit 10.7 to Form 10-K for theyear      ended December 31, 2007 incorporatedherein      by      reference.                 |
|  10.12                  |  Credit      Agreement with JP Morgan Chase                                                                                                                                                                                                                                            |  Filed      as Exhibit 10.1 to Form 8-K datedJune      16, 2008 of PAR TechnologyCorporation      and incorporated herein byreference.  |
| 10.13                        | Pledge      and Security Agreement  with JP Morgan Chase                                                                                                                                                                                                                          | Filed      as Exhibit 10.2 to Form 8-K datedJune      16, 2008 of PAR TechnologyCorporation      and incorporated herein byreference.             |
| 10.14                        | January      2010 – amendment to bank line of credit agreement –JP      Morgan Chase, N.A.; NBTBank, N.A.; Alliance Bank, N.A.                                                                                                                                                  |                                                                                                                                              |
|  22                     |  Subsidiaries      of the registrant                                                                                                                                                                                                                                                   |                                                                                                                                              |
|  23                     |  Consent      of Independent Registered Public Accounting Firm                                                                                                                                                                                                                         |                                                                                                                                              |
|  31.1                   |  Certification      of Chairman of the Board and Chief ExecutiveOfficer      Pursuant to Section 302 of the Sarbanes-Oxley Actof      2002.                                                                                                                                            |                                                                                                                                              |
|  31.2                   |  Certification      of Vice President, Chief Financial Officer,Treasurer      and Chief Accounting Officer Pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002.                                                                                                             |                                                                                                                                              |
|  32.1                   |  Certification      of Chairman of the Board and Chief ExecutiveOfficer      and Vice President, Chief Financial Officer, Treasurerand      Chief Accounting Officer Pursuant to 18 U.S.C. Section1350,      as Adopted Pursuant to Section 906 of the Sarbanes-OxleyAct      of 2002. |                                                                                                                                              |