Exhibit 99.3
HALIFAX ANNOUNCES FOURTH QUARTER AND FISCAL 2003 FINANCIAL RESULTS
Company Reports Net Income Growth of 115% for the Year
ALEXANDRIA, VA - May 29, 2003 - Halifax Corporation (AMEX:HX) today
announced its financial results for the fourth quarter and fiscal year
ended March 31, 2003.
For the year, revenues were $50.4 million versus $49.4 million for
fiscal 2002, an increase of 2%. Revenues increased despite a reduction
in hardware sales as the Company continued its migration to a services-
driven model. The Company reported operating income of $1.3 million
for fiscal 2003 compared to $987,000 for the previous year. Net income
rose 115% to $648,000, or $0.30 per basic and diluted share, for fiscal
2003 compared to $302,000, or $0.14 per basic and diluted share, for
the prior year.
For the quarter ended March 31, 2003, revenues were $11.0 million
versus $13.6 million for the comparable period in 2002, a decrease of
19%. The revenue decrease was due to reductions in hardware orders
principally from governmental customers and reflective of the Company's
strategy to shift to a model composed primarily of higher-margin
services. Net income for the quarter ended March 31, 2003, was
$164,000, or $0.07 per basic and diluted share, versus $115,000, or
$0.05 per basic and diluted share, for the comparable quarter of 2002.
Charles McNew, president and chief executive officer, stated, "Fiscal
2003 was another successful year for our Company. Despite a difficult
economic environment, we continued to build upon our position as a
leader in Enterprise Maintenance Solutions. Once again, we have
increased revenues and improved profitability, and we also reduced our
bank debt by $1.5 million."
He added, "For the coming year, we'll continue to position Halifax as a
leader in Enterprise Maintenance Solutions. Our plan to become the
`Outsourcer's Outsourcer' is resonating with the global service
provider community, and we've built our customer base to include such
prestigious clients as IBM Global Services and Hewlett-Packard. In
addition, we are providing direct services for the Department of
Defense, the Commonwealth of Pennsylvania and the Virginia Department
of Transportation.
"Our goals for fiscal 2004 include working to grow these Enterprise
Maintenance Solutions accounts and add new customers; add new partner
relationships; and continue to build our federal and state government
business," noted McNew. "We plan to increase revenues and
profitability for the year, and we hope to see continued gross
profit margin improvement as we build our service delivery
capabilities. Additionally, we are reviewing selective acquisition
possibilities that would accelerate growth for our Enterprise
Maintenance Solutions platform."
He concluded, "We continue to believe our Company is well positioned
to grow in today's market while we continue to pursue our long-term
objective of market leadership in our chosen niches."
The Company will host a conference call for investors at 11 a.m. EDT on
Thursday, May 29, 2003, to review the financial and operational results
for the quarter and the year. The conference call phone number is 800-
207-3341 for U.S. callers and 415-908-4739 for international callers.
The conference call replay will be available from 1 p.m. EDT on
Thursday, May 29, 2003, to 1 p.m. EDT on Friday, May 30. The replay
number is 800-633-8284 for U.S. callers and 402-977-9140 for
international callers. The reservation number is 21145735.
Founded in 1967, Halifax Corporation is an enterprise maintenance
solutions company providing a wide range of technology services to
commercial and government customers throughout the United States. The
Company's principal products are high availability hardware maintenance
services, technology deployment and integration services, and secure
network program services. More information on Halifax can be found at
www.hxcorp. com.
Certain statements made by the Company which are not historical facts
may be considered forward-looking statements, including, without
limitation, statements as to trends, management's beliefs, views,
expectations and opinions, which are based upon a number of assumptions
concerning future conditions that ultimately may prove to be inaccurate.
Such forward-looking statements are subject to risks and uncertainties
and may be affected by various factors that may cause actual results to
differ materially from those in the forward-looking statements. For
further information that could affect the Company's financial
statements, please refer to the Company's reports filed with the
Securities and Exchange Commission.
Halifax Corporation
Summary Financial Data
(In Thousands, except share data)
Statement of operations For the three months For the years ended
ended March 31 March 31,
2003 2002 2003 2002
Revenues $ 11,000 $ 13,613 $ 50,418 $ 49,350
Operating income 329 284 1,337 987
Other income - 6 20 9
Interest expense (150) (160) (649) (634)
Income tax expensse (15) (15) (60) (60)
Net income $ 164 $ 115 $ 648 $ 302
Earning per common share
- - basic $ .07 $ .05 $ .30 $ .14
Earnings per common
share - diluted $ .07 $ .05 $ .30 $ .14
Weighted average number
of common shares
outstanding
Basic 2,176,296 2,175,613 2,175,781 2,100,321
Diluted 2,200,360 2,189,544 2,212,360 2,106,478
Balance Sheets March 31, 2003 March 31, 2002
Current assets $ 12,354 $ 14,646
Non-current assets 4,415 5,029
Total assets $ 16,769 $ 19,675
Current liabilities $ 7,262 $ 9,203
Non-current liabilities 10,138 11,752
Total liabilities $ 17,400 $ 20,955
Stockholders' deficit (631) (1,280)
Total liabilities and
stockholders' deficit $ 16,769 $ 19,675