Exhibit 99.1
HALIFAX ANNOUNCES SECOND QUARTER
FINANCIAL RESULTS
Quarterly EPS of $0.06 Represents
Three-Fold Increase over First Quarter Performance
ALEXANDRIA, VA - October 30, 2003 - Halifax Corporation (AMEX:HX) today
announced its financial results for the quarter ended September 30,
2003.
For the quarter ended September 30, 2003, revenues were $12.5 million
versus $14.1 million for the comparable period of 2002, a decrease of
13%. The revenue decrease was primarily due to reductions in hardware
orders from government customers, a trend that has continued for
several quarters and reflects the Company's strategy to emphasize a
services-oriented model. Revenues were also negatively affected by
pricing adjustments associated with certain contract extensions.
Net income for the quarter ended September 30, 2003, was $152,000, or
$0.06 per basic and diluted share, versus $190,000, or $0.09 per basic
and diluted share, for the comparable quarter of last year.
Compared to the quarter ended June 30, 2003, revenues increased 17% and
net income rose 198%.
Charles McNew, president and chief executive officer, noted, "We're
pleased with the improvement we've made over the previous quarter, with
revenues and profits up significantly. Our services strategy is
visibly positioning the Company for continued growth in the enterprise
maintenance solutions marketplace.
"Our quarterly earnings results reflect the benefit of reduced overhead
costs, as we continue to refine our cost structure to support effective
service delivery. Our service business continues to grow as is
evidenced by our backlog of $56.3 million, which is up for the third
consecutive quarter."
For the six months ended September 30, 2003, revenues were $23.1
million compared to $28.1 million for the same period last year. Net
income was $203,000, or $0.09 per basic and $0.08 per diluted share,
for the first six months of this year compared to $333,000, or $0.15
per basic and diluted share, for the same period of the prior year.
McNew added, "We are completing the final phases of the integration of
the Microserv acquisition, and we continue to expect to generate
accretive earnings and improved market positioning as we move forward.
Additionally, our balance sheet continues to improve as a result of
sustained profitability, the recent private placement and a
corresponding reduction in debt."
He added, "We are bullish regarding our future prospects, and we
believe that our leadership position in the enterprise maintenance
solutions marketplace will continue to afford ongoing improvement in
shareholder value."
The Company will host a conference call for investors at 11 a.m. EST on
Thursday, October 30, 2003, to review the financial and operational
results for the quarter. The conference call phone number is 888-882-
0114 for U.S. callers and 212-346-6468 for international callers. The
conference call replay will be available from 1 p.m. EST on Thursday,
October 30, 2003 to 1 p.m. EST on Friday, October 31, 2003. The replay
number is 800-633-8284 for U.S. callers and 402-977-9140 for
international callers. The reservation number is 21164516.
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 expect per share amounts)
Three Months Six Months Ended
Ended September 30,
September 30,
Statements of Operations 2003 2002 2003 2002
Revenues $12,461 $ 14,055 $ 23,137 $ 28,070
Operating income 303 360 502 698
Other income 6 11 10 12
Interest expense (142) (166) (289) (347)
Income tax benefit (expense) (15) (15) (20) (30)
Net income $ 152 $ 190 $ 203 $ 333
Earnings per common share -
basic: $ .06 $ .09 $ .09 $ .15
Earnings per common share -
diluted: $ .06 $ .09 $ .08 $ .15
Weighted average number of
common shares outstanding:
Basic 2,557 2,176 2,365 2,176
Diluted 2,627 2,211 2,400 2,200
Balance Sheets September 30, March 31,
2003 2003
Current assets $ 14,862 $ 12,354
Non-current assets 6,541 4,415
Total assets $ 21,403 $ 16,769
Current liabilities $ 10,074 $ 7,262
Non-current liabilities 8,347 10,138
Total liabilities 18,421 17,400
Stockholders' equity (deficit) 2,982 (631)
Total liabilities and
stockholder's equity (deficit) $ 21,403 $ 16,769